G & G Closed Circuit Events, LLC v. Arias Alfaro

District Court, E.D. California·Decided February 7, 2023·No. 1:22-cv-00543·Unknown

Opinion

G & G CLOSED CIRCUIT EVENTS, LLC, ) Case No.: 1:22-cv-0543 JLT SKO ) Plaintiff, ) ORDER GRANTING PLAINTIFF’S MOTION TO ) STRIKE DEFENDANTS’ AFFIRMATIVE v. ) DEFENSES ) JORGE LUIS ARIAS ALFARO and ) (Doc. 10) JOSE B. SALAZAR, individually and d/b/a ) ) Defendants. ) )

G & G Closed Circuit Events asserts that Jorge Luis Arias Alfaro and Jose B. Salazar, individually and doing business as Mercado Carniceria Del Valle, broadcast a program without paying the commercial licensing fee. (Doc. 1.) Plaintiff seeks to strike the affirmative defenses asserted by Defendants pursuant to Rule 12(f) of the Federal Rules of Civil Procedure. (Doc. 10.) The Court finds the matter suitable for decision without oral arguments, and no oral argument will be set pursuant to Local Rule 230(g). For the reasons set forth below, Plaintiff’s motion to strike is I. Factual and Procedural History Plaintiff alleges the company possessed “the exclusive nationwide commercial distribution (closed-circuit) rights to Saul ‘Canelo’ Alvarez v. Billy Joe Saunders Championship Fight Program” (“the Program”), which was broadcast on May 8, 2021. (Doc. 1 at 6, ¶ 17.) Plaintiff asserts this Program included “all under-card bouts and fight commentary encompassed in the television broadcast of the event.” (Id. at 6-7, ¶ 17.) Plaintiff asserts the company “entered into subsequent sublicensing agreements with various commercial entities throughout North America, including entities within the State of California, by which it granted these entities limited sublicensing rights, specifically the rights to publicly exhibit the Program within their respective commercial establishments.” (Id., ¶ 18.) According to Plaintiff, “[t]he Program could only be exhibited in a commercial establishment in California if said establishment was contractually authorized to do so by Plaintiff G & G Closed Circuit Events, LLC.” (Id., ¶ 19 [emphasis omitted].) Plaintiff reports the Program “originated via satellite uplink and was subsequently re- transmitted to cable systems and satellite companies to Plaintiff’s sub- licensees.” (Id., ¶ 21.) Plaintiff asserts that in violation of the company’s rights, “Defendants intercepted, received and published the Program at Mercado Carniceria Del Valle.” (Doc. 1 at 8, ¶ 22.) Plaintiff alleges that “Defendants also divulged and published said communication, or assisted in divulging and publishing said communication to patrons within Mercado Carniceria Del Valle.” (Id.) Plaintiff contends: With full knowledge that the Program was not to be intercepted, received, published, divulged, displayed, and/or exhibited by commercial entities unauthorized to do so the above named Defendants, either through direct action or through actions of employees or agents directly imputable to Defendants (as outlined in Paragraphs 7- 23 above), did unlawfully intercept, receive, publish, divulge, display, and/or exhibit the Program at the time of its transmission at their commercial establishment located at 10301 Artesia Blvd., Ste. 104-105, Bellflower, CA 90706.

(Id. at 1, ¶ 23 [emphasis omitted].) According to Plaintiff, “[a]t all times relevant hereto, including on Saturday, May 8, 2021,” defendants Jorge Luis Arias Alfaro and Jose B. Salazar were each “an owner and/or operator, and/or licensee, and/or permittee, and/or an individual with dominion, control, oversight and management of the commercial, establishment doing business as Mercado Carniceria Del Valle.” (Doc. 1 at 3-4, ¶¶ 7, 9.) Plaintiff also alleges Alfaro and Salazar were each “specifically identified as a licensee on the California Department of Alcoholic Beverage Control License (ABC #547252) issued for Mercado Carniceria Del Valle” at relevant times, including the night of the Program. (Id. at 4, ¶¶ 8, 10.) Plaintiff asserts that the night of the Program broadcast, Alfaro and Salazar “had the right and ability to supervise the activities of Mercado Carniceria Del Valle, which included the unlawful interception, receipt, and publication of Plaintiff’s Program.” (Doc. 1 at 5, ¶ 11.) Further, Plaintiff contends Alfaro and Salazar were obligated “to supervise the activities of Mercado Carniceria Del Valle,” and the defendants “specifically directed or permitted the employees of Mercado Carniceria Del Valle to unlawfully intercept, receive, and publish Plaintiff’s Program …, or intentionally intercepted, received, and published the Program at Mercado Carniceria Del Valle themselves.” (Id., ¶¶ 12-13.) Plaintiff alleges the night of the Program broadcast, “Mercado Carniceria Del Valle sold food and alcohol to its patrons,” and the Program broadcast “resulted in increased profits for Mercado Carniceria Del Valle.” (Doc. 1 at 6, ¶¶ 14-15.) Plaintiff asserts the “unauthorized interception, reception, publication, exhibition, divulgence, display, and/or exhibition by the Defendants was done willfully and for purposes of direct and/or indirect commercial advantage and/or private financial gain.” (Id. at 8, ¶ 24.) According to Plaintiff, “[a]s a proximate result of the aforementioned acts attributable to the Defendants, Plaintiff has been permanently deprived of the patronage of current, previous and potential customers of the sports and entertainment programming it licenses commercially to the hospitality industry….” (Id. at 13-14, ¶ 46.) Plaintiff seeks damages including—but not limited to— statutory damages under Sections 553 and 605; compensatory, exemplary, and punitive damages for the tort of conversion; and restitution under California’s Unfair Competition Law. (Id. at 14-16.) On May 5, 2022, Plaintiff initiated this action by filing a complaint, seeking to hold Defendants liable for violations of the Communications Act of 1934 (47 U.S.C. § 605, et seq.) and the Cable & Television Consumer Protection and Competition Act of 1992 (47 U.S.C. § 553, et seq.). (Doc. 1 at 6-11.) Plaintiff also seeks to hold Defendants liable under state law for the tort of conversion and a violation of California Business and Professions Code, Section 17200. (Id. at 11-14.) Defendants filed their Answer on July 19, 2022. (Doc. 6.) Defendants asserted 21 affirmative defenses, which included reserving “their right to add additional affirmative defenses [in] the event discovery indicates they would be appropriate.” (Id. at 11, ¶ 69.) On August 9, 2022, Plaintiff filed the motion to strike now pending before the Court, seeking to strike Defendants’ affirmative defenses and the reservation clause. (Doc. 10.) Defendants filed their opposition to the motion on August 23, 2022 (Doc. 12), to which Plaintiff filed a reply on September 2, 2022 (Doc. 13). II. Legal Standards Rule 8 of the Federal Rules of Civil Procedure requires a party responding to a pleading to “state in short and plain terms its defenses to each claim asserted against it.” Fed. R. Civ. P. 8(b)(1). Further, responding parties are instructed to “state any avoidance or affirmative defense, including: accord and satisfaction; arbitration and award; assumption of risk; contributory negligence; duress; estoppel; failure of consideration; fraud; illegality; injury by fellow servant; laches; license; payment; release; res judicata; statute of frauds; statute of limitations; and waiver.” Fed. R. Civ. P. 8(c)(1). The Court may str

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