Facebook, Inc. v. Grunin

77 F. Supp. 3d 965, 2015 U.S. Dist. LEXIS 2075, 2015 WL 124781
CourtDistrict Court, N.D. California
DecidedJanuary 8, 2015
DocketNo. C 14-02323 WHA
StatusPublished
Cited by2 cases

This text of 77 F. Supp. 3d 965 (Facebook, Inc. v. Grunin) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Facebook, Inc. v. Grunin, 77 F. Supp. 3d 965, 2015 U.S. Dist. LEXIS 2075, 2015 WL 124781 (N.D. Cal. 2015).

Opinion

[968]*968ORDER GRANTING MOTION FOR DEFAULT JUDGMENT AND PERMANENT INJUNCTION ■

WILLIAM ALSUP, United States District Judge

INTRODUCTION

In this action involving alleged computer fraud and abuse, plaintiff moves for default judgment and a permanent injunction. For the reasons stated herein, plaintiffs motion is Granted. A copy of this order will also be referred to the Office of the United States Attorney.

STATEMENT

Prior orders recounted the history of this action so it will not be repeated herein (Dkt. Nos. 33, 65). In brief, Martin Gru-nin, the only defendant, was personally served with the summons and operative complaint on May 22, 2014 (Dkt. Nos. 13, 20). No responsive pleading was timely filed.

Instead, Grunin, an adult, larded the record with a hodgepodge of documents. Here are some details:

• In May 2014, Grunin filed a document purporting to confer “special limited power of attorney” on a non-attorney, “Brian-Robert: Costello.”
• Grunin also filed a copy of the summons and complaint with the following handwritten note:
I DO NOT ACCEPT THIS OFFER TO CONTRACT and I DO NOT CONSENT TO THESE PROCEEDINGS.
BY: Brian Robert: Costello
Public Minister/Diplomat
united states of America [sic]
For: Martin Grunin
• Grunin also filed a “declaration of Copyright Trademark,” purporting to claim a right to the phrase “MARTIN GRUNIN” (Dkt. No. 8).
• In June 2014, Grunin filed a “constructive notice of conditional acceptance,” stating that he would accept Facebook’s “offer to stop deleting any/all files” on the condition that Facebook pay him $100,000. He further stated that future attempts to “communicate or summon” him to any “public court” would require “consideration” of one million dollars (Dkt. Nos. 10,17).
• He also filed a “notice of offer to settle,” stating that he was tendering a check for $250 to “settle the matter.” He further stated that “failure to honor the contract” would result in a penalty of $50,000 and “all phone call(s) are two thousand ($2000.00) dollars, per call” (Dkt. Nos. 23, 27).
• Default was registered against Gru-nin on June 23, 2014 (Dkt. No. 22).
• In July 2014, Grunin filed a “notice,” stating that if Facebook wished to enter into a “contractual relationship” it must pay $100,000 (Dkt. No. 26).
• He also filed a “notice,” purporting to charge Facebook $300,000 for filing a motion (Dkt. No. 30).
• He also filed a “notice of default in dishonor consent to judgment,” stating that Facebook’s failure to respond to his offer constituted an “agreement to settle the obligations” for zero dollars (Dkt. Nos. 31, 32, 36, 37, 38).
• He then filed an “affidavit of specific negative averment,” wherein he purported to deny that the “UNITED STATES DISTRICT COURT [was] the district court of the United States;” to deny that the “UNITED STATES DISTRICT COURT ha[d the] capacity for substantive due process;” and to “den[y] that Martin Grunin is liable to or for any of the [969]*969Federal Government statutes or codes” (Dkt. No. 35).
• In August 2014, Grunin filed an “affidavit, stating that “LAWYERS AND ATTORNEYS ARE NOT LICENSED TO PRACTICE LAW” and “CASE ‘LAW’ IS UNCONSTITUTIONAL” (Dkt. No. 39).

A week later, Attorneys Andrew Gordon (Gordon Law Group, located in Illinois) and Seth Weinstein (Law Offices of Seth Weinstein, located in Sherman Oaks) appeared on behalf of defendant Grunin (Dkt. Nos. 42, 45). Defense counsel then moved to set aside the default. Grunin’s declaration, however, never stated innocence and failed to specifically identify any defenses.

After full briefing and oral argument by both sides, an October 2014 order denied Grunin’s motion to set aside the default. Nevertheless, Grunin was given one more chance to move to lift the default on the condition that he agree to pay Facebook’s reasonable attorney’s fees and expenses incurred from his improper filings. Also, he was given another opportunity to file a declaration showing his innocence (Dkt. No. 65).

No declaration or renewed motion was filed. Facebook then moved for default judgment and a permanent injunction. No opposition was timely filed. Grunin was then given one more chance to oppose the motion. He filed a statement of non-opposition via counsel (Dkt. No. 70). Grunin then stated he wanted to proceed pro se and consented to the withdrawal of his attorneys (Grunin Decl. ¶ 1). His counsel were thus permitted to withdraw.

Grunin then appeared in person at oral argument. He made an oral request to lift the default. This request was denied because (1) it was untimely; (2) Grunin had been given a prior opportunity to file a renewed motion to lift the default (subject to the aforementioned reasonable condition) and he did not avail himself to that opportunity; (3) he never stated innocence and there is no evidence in the record that proceeding on the merits would be productive; and (4) he had filed a litany of inappropriate documents in this case. This order follows full briefing, supplemental briefing, and oral argument.

ANALYSIS

It is undisputed that (1) Grunin was personally served with the summons and operative complaint in May 2014; (2) he failed to timely file a responsive pleading; (3) default was registered against Grunin in June 2014; (4) he never identified any specific meritorious defenses backed by a sworn declaration; and (5) he filed a statement of non-opposition to the instant motion (even though he later made an untimely oral request to lift the default).

The operative complaint alleged the following claims for relief: (1) breach of contract, (2) fraud, (3) violation of the Computer Fraud and Abuse Act, 18 U.S.C. 1030, et seq., and (4) violation of the California Comprehensive Computer Data Access and Fraud Act, California Penal Code 502. Facebook seeks damages “in excess of $340,000,” reasonable attorney’s fees, and a permanent injunction. If default judgment is entered, Facebook seeks leave to file briefs and declarations proving-up damages (Br. 13-15).

Upon registration of default, all well-pled factual allegations in the complaint, except as to damages, are taken as true. TeleVideo Systems, Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir.1987). In considering whether a default judgment is appropriate, the following factors are considered:

(1) the possibility of prejudice to the plaintiff, (2) the merits of plaintiffs substantive claim, (3) the sufficiency of the complaint, (4) the sum of money at stake [970]

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Cite This Page — Counsel Stack

Bluebook (online)
77 F. Supp. 3d 965, 2015 U.S. Dist. LEXIS 2075, 2015 WL 124781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/facebook-inc-v-grunin-cand-2015.