G & G Closed Circuit Events, LLC v. Adelio Walden and Jerry Ken Wong, individually and doing business as Islanders a/k/a Islander's Lounge; and D & J Bar & Grill LLC, doing business as Islanders a/k/a Islander's Lounge

District Court, E.D. California·Decided March 3, 2026·No. 2:25-cv-01796·Unknown

Opinion

G & G CLOSED CIRCUIT EVENTS, No. 2:25-cv-1796 WBS AC LLC, Plaintiff, FINDINGS AND RECOMMENDATIONS v. ADELIO WALDEN and JERRY KEN WONG, individually and doing business as ISLANDERS a/k/a ISLANDER'S LOUNGE; and D & J BAR & GRILL LLC, doing business as ISLANDERS a/k/a Defendants. This case is before the court on plaintiff’s motion for default judgment. ECF No. 17. The motion was referred to the undersigned pursuant to E.D. Cal. R. 302(c)(19). For the reasons set forth below, the undersigned recommends plaintiff’s motion be granted in part, and that judgment be entered in favor of plaintiff for a reduced damages award of $1,800. I. Relevant Background Plaintiff filed its complaint on June 26, 2025 against (1) Adelio Walden and Jerry Ken Wong, each both individually and doing business as Islanders, a/k/a Islander’s Lounge (“Islanders”); and (2) D & J Bar & Grill LLC (“D & J”), also individually and doing business as Islanders. ECF No. 1. Specifically, the Complaint identifies Walden and Wong as Islanders’ ///// Managers pursuant to the Statement of Information (“SOI”) on file with the California Secretary of State. ECF No. 1 at 4, 6; ECF No. 17-4 at 9. The complaint alleges that on July 6, 2024, D & J “intercepted, received, and published” the Last Man Standing: The Nate Diaz v. Jorge Masvidal Fight telecast, including all interviews and game commentary (collectively “Program”). ECF No. 1 at 9-11. The pending motion includes an affidavit from investigator Luke Orlando, who visited Islanders that day at 151 W. Alder St., Stockton, CA. 95204 (“Venue”). ECF No. 17-3 at 2. Orlando witnessed one of the three 55”-65” television screens showing the Program, which the bartender confirmed once asked. Id. at 2-3. Orlando did not have to pay a cover charge to go inside, counted no more than 12 patrons present at any time, and estimated the Venue’s maximum capacity was 50. Id. at 4. The Complaint alleges that plaintiff had exclusive rights to commercial distribution of the Program nationwide, yet defendants did not enter a sublicensing agreement authorizing them to broadcast the Program. ECF No. 1 at 10; see also ECF No. 17-2 at 9-19 (License Agreement between Plaintiff and the promoter for the Program). A “rate card” shows that plaintiff would have charged a $900 licensing fee for any business with a customer capacity of less than 100. ECF No. 17-2 at 3, 21. In a declaration attached to the pending motion, plaintiff’s president Nicolas Gagliardi asserts that this conduct damages both plaintiff and its paying customers. ECF No. 17-2 at 5. He acknowledges that pirates like defendants do not usually advertise that they are exhibiting the program, except possibly by word of mouth. Id. at 5-6. Plaintiff has no evidence or reason to believe that the Venue or other pirate establishments raise food or drink prices on the nights they broadcast pirated programs. Id. at 6. Based on the unauthorized interception, publication, display, and exhibition of the Program, the complaint alleges violations of 47 U.S.C. § 553 et seq. and 47 U.S.C. § 605 et seq., as well as conversion.1 ECF No. 1 at 9-14. 1 Although the Complaint also states a claim under Cal. Bus. and Prof. Code § 17200 et seq., the motion for default judgment does not seek relief under this claim. ECF Nos. 1 at 15, 17 at 3. In any case, this statute merely provides a cause of action for “any unlawful, unfair or fraudulent business act or practice”, including acts made unlawful based on the statutes cited in other claims. Plaintiff served all three defendants on July 25, 2025. ECF Nos. 6-8. Default was entered against all defendants on September 30, 2025. ECF No. 13. Plaintiff filed the pending motion for default judgment on November 18, 2025, and personally served it on defendants the same day. ECF No. 17-4 at 17. II. Motion Plaintiff moves for default judgment for $25,400 in damages, including $4,500 under 47 U.S.C. § 605(e)(3)(C)(i)(II), $20,000 under 47 U.S.C. § 605(e)(3)(C)(ii), and $900 for conversion. ECF No. 17-1 at 12, 22. Plaintiff also seeks leave to move for attorney’s fees and costs within 14 days of entry of judgment. Id. at 22. III. Analysis A. Legal Standard Pursuant to Federal Rule of Civil Procedure 55, default may be entered against a party against whom a judgment for affirmative relief is sought who fails to plead or otherwise defend against the action. See Fed. R. Civ. P. 55(a). However, “[a] defendant’s default does not automatically entitle the plaintiff to a court-ordered judgment.” PepsiCo, Inc. v. Cal. Sec. Cans, 238 F.Supp.2d 1172, 1174 (C.D. Cal. 2002) (citing Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986)); see Fed. R. Civ. P. 55(b) (governing the entry of default judgments). Instead, the decision to grant or deny an application for default judgment lies within the district court’s sound discretion. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In making this determination, the court may consider the following factors:

the possibility of prejudice to the plaintiff; (2) the merits of plaintiff's substantive claim; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility of a dispute concerning material facts; (6) whether the default was due to excusable neglect; and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). Default judgments are ordinarily disfavored. Id. at 1472.

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G & G Closed Circuit Events, LLC v. Adelio Walden and Jerry Ken Wong, individually and doing business as Islanders a/k/a Islander's Lounge; and D & J Bar & Grill LLC, doing business as Islanders a/k/a Islander's Lounge, (E.D. Cal. 2026).

G & G Closed Circuit Events, LLC v. Adelio Walden and Jerry Ken Wong, individually and doing business as Islanders a/k/a Islander's Lounge; and D & J Bar & Grill LLC, doing business as Islanders a/k/a Islander's Lounge (G & G Closed Circuit Events, LLC v. Adelio Walden and Jerry Ken Wong, individually and doing business as Islanders a/k/a Islander's Lounge; and D & J Bar & Grill LLC, doing business as Islanders a/k/a Islander's Lounge) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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