Five for Entertainment S.A. v. Rodriguez

877 F. Supp. 2d 1321, 2012 WL 2918574, 2012 U.S. Dist. LEXIS 101939
CourtDistrict Court, S.D. Florida
DecidedJuly 9, 2012
DocketNo. 11-24142-CIV
StatusPublished
Cited by19 cases

This text of 877 F. Supp. 2d 1321 (Five for Entertainment S.A. v. Rodriguez) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Five for Entertainment S.A. v. Rodriguez, 877 F. Supp. 2d 1321, 2012 WL 2918574, 2012 U.S. Dist. LEXIS 101939 (S.D. Fla. 2012).

Opinion

ORDER GRANTING IN PART MOTION TO DISMISS, DENYING AS MOOT MOTION FOR BOND AND DENYING MOTION FOR HEARING

PATRICIA A. SEITZ, District Judge.

This case involves a failed series of concerts in Argentina involving Daddy Yankee, a multiple Grammy award-winning singer of Reggaeton music. Plaintiffs entered into two contracts to promote and produce ten Daddy Yankee concerts scheduled for November of 2010. After Plaintiffs expended more than $1,000,000 in support of the tour, and just days before the first concert, Defendants issued a press release canceling the entire tour. The press release, which Defendants posted on their own websites, indicated that Plaintiffs had failed to pay monies owed to Daddy Yankee and blamed Plaintiffs for the canceled tour. Plaintiffs have filed suit against Defendants for breach of contract, defamation and various other claims.

Currently before the Court are Defendants’ Motion to Dismiss counts 2 and 5-9 [DE-18], a request for bond on Plaintiffs’ FDUTPA claim [DE-19] and a request for a hearing [DE-20], The Court has considered the motions, Plaintiffs’ responses [DE-21, 22] and the replies [DE-23, 24]. For the reasons set forth below, the Court will grant in part the motion to dismiss and deny the motions for bond and for a hearing. Specifically, the Court will dismiss Counts 5-9 without prejudice, grant the motion to dismiss the request for lost profits in Count 8 with prejudice and deny the motion as to Count 2.

I. Background Facts

The facts, taken from the Complaint, are as follows: Plaintiffs Five for Entertainment S.A., d/b/a/ Five Live Entertainment (“Five Live”) and its president and majority shareholder, Diego Hernán De Irada (“De Iraola”), are in the business of pro[1324]*1324ducing and promoting concerts for musical artists in Argentina. On June 8, 2010, Five Live and Defendant El Cartel Records, Inc. (“El Cartel”) entered into an “Artist Engagement Contract” for a series of six performances by Defendant Ramon Luis Ayala Rodriguez a/k/a/ Daddy Yankee in Argentina. Under the terms of that contract, Five Live agreed to pay a total of $820,000 to Defendant Icaro Services, Inc. (“Icaro”), Daddy Yankee’s booking agent, payable in four $205,000 payments. Although the contract specified dates for those payments, Plaintiffs allege that all parties understood the payments would actually be made on a rolling basis. Between June and November 2010, De Iraola made thirteen payments to Icaro’s president Edgar Baldiri Martinez (“Baldiri”) totaling $796,895.

Per the terms of the contract, Five Live paid all costs associated with the concerts, including the cost of equipment, lighting, audio and technical support. Five Live also arranged for and paid all transportation, food and lodging for Daddy Yankee and thirty members of his staff. Five Live also made down payments in excess of $150,000 for airfare and lodging alone in anticipation of the concerts.

Daddy Yankee arrived in Argentina in September 2010 for a promotional tour in advance of the concerts. During this promotional tour, and allegedly at the behest of Baldiri, Daddy Yankee made public statements announcing four additional concerts, describing the tour as ten shows, not six as specified in the contract. After the producers of the additional shows backed out, Baldiri advised De Iraola that the Defendants expected Five Live to produce the additional four shows. Further, Baldiri threatened to cancel the six-show tour unless De Iraola agreed to produce the entire ten-show tour. De Iraola agreed to the demands and immediately took steps to promote the additional shows. De Iraola traveled extensively to different venues, negotiated contracts with local vendors and producers and commenced integration of the existing marketing and logistic efforts already underway with those necessary for the additional shows.

De Iraola performed all of this work without a contract for the additional shows and without an agreement for the amount or timing of Daddy Yankee’s fee for the additional four shows. On October 24, 2010, De Iraola traveled to Columbia to meet with Baldiri and discuss payment for the four additional shows, but they were unable to reach an agreement. On October 27, 2010, Argentina’s former President Nestor Kirchner, spouse of then President Cristina F. de Kirchner, passed away unexpectedly. As a result, weekend games for the national soccer team were suspended, requiring the games to be rescheduled at venues and on dates scheduled for Daddy Yankee’s tour. The parties thereafter rescheduled the tour, with the first concert set to start on November 19, 2010.

On November 1, 2010, Baldiri emailed De Iraola a draft contract for the additional shows. Under its terms, De Iraola would pay Daddy Yankee $480,000 for the additional shows. The contract price was payable in four installments on specified dates set forth in the contract, three of which had already passed by the time Baldiri emailed the contract to De Iraola. De Iraola immediately signed and emailed the contract back to Baldiri. No Defendant, however, signed the agreement. On November 10, 2010, the parties agreed that the fee would be paid upon Daddy Yankee’s arrival in Argentina.

Without specifying the time frame involved, Plaintiffs allege that Baldiri demanded payment in full of the $480,000. De Iraola offered to wire the money to Icaro’s account once Daddy Yankee and his staff arrived in Argentina. De Iraola [1325]*1325maintains it was necessary to condition payment on Daddy Yankee’s arrival in Argentina because of Baldiri’s repeated threats to cancel the tour. On November 16, 2010, Mireddys Gonzalez, Daddy Yankee’s manager, sent an email to De Iraola indicating that she would cancel the tour if De Iraola failed to promptly pay the entire fee for all ten shows. De Iraola offered to begin the wire transfer before Daddy Yankee left the United States if an Icaro employee traveled to Buenos Aires to supervise the transfer of funds. Gonzalez and Baldiri refused that offer.

On November 17, 2010, Icaro issued an official communication to the media announcing the cancellation of all ten of Daddy Yankee’s shows. On that same date, Daddy Yankee posted a press release on his personal website and Icaro’s website, both of which are available to the public. Plaintiffs allege that the press release contains the following false statements:

(i) Plaintiff De Iraola, producer and party responsible for the concerts in Argentina, was in arrears and owed more than 40% of Daddy Yankee’s fee for the shows; (ii) Defendants had afforded Plaintiff De Iraola every opportunity to pay and offered him different alternative means of complying with his contractual obligations; (iii) Defendants’ goodwill and efforts had been in vain because on the day prior to the scheduled trip to Argentina, Plaintiffs were still in default, and (iv) Plaintiff Five Live, under the direction of Plaintiff De Iraola, had failed to adequately perform its contractual obligations under the governing contract.

Compl., ¶ 71. Plaintiffs further allege that the statements in the press release were made with the knowledge, consent and approval of Baldiri, Icaro, El Cartel and Daddy Yankee. The contents of the press release were thereafter picked up by more than 130 media outlets, including internet, television and radio.

In the weeks following the press release, Baldiri continued to make false statements against Plaintiffs.

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Bluebook (online)
877 F. Supp. 2d 1321, 2012 WL 2918574, 2012 U.S. Dist. LEXIS 101939, Counsel Stack Legal Research, https://law.counselstack.com/opinion/five-for-entertainment-sa-v-rodriguez-flsd-2012.