G & G Closed Circuit Events, LLC v. La Placita RM Restaurant Inc.

District Court, E.D. California·Decided August 8, 2023·No. 2:22-cv-01089·Unknown

Opinion

G & G CLOSED CIRCUIT EVENTS, No. 2:22-cv-1089 DB LLC, Plaintiff, ORDER AND v. FINDINGS AND RECOMMENDATIONS et al., Defendants. This matter came before the undersigned on January 13, 2023, for hearing of plaintiff G&G Closed Circuit Events LLC’s (“plaintiff”) motion for a default judgment against defendants La Placita RM Restaurant Inc, Maria Mercado Garin, and Rafael Zepeda individually and in their capacity as owners of La Placita Taqueria (“defendants”). Attorney Thomas P. Riley appeared on behalf of plaintiff via Zoom. No appearance was made by a defendant or on their behalf. Oral argument was heard, and the motion was taken under submission. Considering all documents submitted regarding the motion and oral argument, the undersigned recommends plaintiff’s motion for default judgment be granted. //// //// Plaintiff initiated this matter by filing a complaint on June 24, 2022, and paying the required filing fee. (ECF No. 1.) Plaintiff, G&G Closed Circuit Events LLC, is a California corporation in the business of distributing and licensing sporting events. (Compl. (ECF No. 1) at 61.) Plaintiff’s complaint alleges that it was granted exclusive rights to the nationwide distribution of Manny Pacquiao v. Yordenis Ugas (“Program”), telecast on August 21, 2021. (Id.) Plaintiff entered into sublicensing agreements with commercial entities, granting rights to exhibit the Program at their respective establishments. (Id.) Plaintiff expended resources marketing and transmitting the Program to customers. (Id.) Defendants are the owners, operators, licensees, permittees, or persons in charge of the commercial establishment doing business as La Placita Taqueria, operating at 222 N. El Dorado, Suite D, Stockton, CA 95202. (Id. at 3.) Plaintiff’s complaint alleges defendants, without purchasing a sublicense, unlawfully screened the Program on August 21, 2021, in their establishment. (Id. at 7.) Based on these allegations the complaint alleges claims pursuant to 47 U.S.C. § 605, et seq., 47 U.S.C. § 533, et seq., for conversion; and violation of the California Business and Professions Code § 17200, et seq. (Id. at 1.) Proof of service of process on defendants was filed on August 12, 2022. (ECF Nos. 6, 7, 8). On September 2, 2022 plaintiff filed a request for entry of defendants’ default. (ECF No. 9.) Default was entered on September 6, 2022. (ECF No. 10.) Plaintiff filed a motion for default judgment on November 16, 2022. (ECF No. 11.) Defendants were served with the request for entry of default and the motion for default judgment. (ECF No. 9 at 3; ECF No. 11 at 4.) The matter came before the undersigned for hearing on January 13, 2023. Attorney Thomas P. Riley appeared on behalf of the plaintiff. No appearance was made by a defendant or on their behalf. (ECF No. 13.) //// //// 1 Page number citations such as this are to the page number reflected on the court’s CM/ECF system and not to the page numbers assigned by the parties. Federal Rule of Civil Procedure 55(b)(2) governs applications to the court for default judgment. Upon entry of default, the complaint’s factual allegations regarding liability are taken as true, while allegations regarding the amount of damages must be proven. Dundee Cement Co. v. Howard Pipe & Concrete Prods., 722 F.2d 1319, 1323 (7th Cir. 1983) (citing Pope v. United States, 323 U.S. 1 (1944); Geddes v. United Fin. Group, 559 F.2d 557 (9th Cir. 1977)); see also DirectTV v. Huynh, 503 F.3d 847, 851 (9th Cir. 2007); TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987). Where damages are liquidated, i.e., capable of ascertainment from definite figures contained in documentary evidence or in detailed affidavits, judgment by default may be entered without a damages hearing. Dundee, 722 F.2d at 1323. Unliquidated and punitive damages, however, require “proving up” at an evidentiary hearing or through other means. Dundee, 722 F.2d at 1323-24; see also James v. Frame, 6 F.3d 307, 310-11 (5th Cir. 1993). Granting or denying default judgment is within the court’s sound discretion. Draper v. Coombs, 792 F.2d 915, 924-25 (9th Cir. 1986); Aldabe v. Aldabe, 616 F.2d. 1089, 1092 (9th Cir. 1980). The court considers a variety of factors in exercising its discretion. Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). Among them are: (1) 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, 782 F.2d at 1471-72 (citing 6 Moore’s Federal Practice ¶ 55-05[2], at 55-24 to 55-26). 1. The Eitel Factors Favor Entry of Default Judgment a. Possibility of Prejudice to the Plaintiff The first Eitel factor contemplates the possibility of prejudice to the plaintiff if a default judgment is not entered. Eitel, 782 F.2d at 1471. Prejudice can be established where failure to enter a default judgment would leave plaintiffs without a proper remedy. Pepsico, Inc. v. Cal. Sec. Cans, 238 F.Supp.2d 1172, 1177 (C.D. Cal 2002). Here, plaintiff has no alternative for recovering damages suffered as a result of defendants’ act of piracy. Since defendants failed to appear in this action, denial of default judgment would leave plaintiff no remedy for this injury. Accordingly, the first factor weighs in favor of default judgment. b. Merits of Plaintiff’s Substantive Claims and Sufficiency of the Complaint The second and third Eitel factors jointly examine whether the plaintiff has pleaded facts sufficient to establish and succeed upon its claims. Pepsico, Inc., 238 F.Supp.2d at 1175 (citing Kleopping v. Fireman’s Fund, 1996 WL 75314, at *2 (N.D. Cal. Feb. 14, 1996)). Plaintiff’s motion for default judgment seeks recovery on its Section 605 and conversion claims; the elements and facts alleged in support are examined below. (ECF No. 11 at 3.) i. Violation of 47 U.S.C. § 605 A violation of Section 605 requires that a defendant “(1) intercepted or aided the interception of, and (2) divulged or published, or aided the divulging or publishing of, a communication transmitted by the plaintiff.” Nat’l Subscription Television v. S & H TV, 644 F.2d 820, 826 (9th Cir. 1981). Since the 1984 amendments to Section 605, communications protected by the statute include satellite television signals. Sosa v. DIRECTV, Inc., 437 F.3d 923, 926 (9th Cir. 2006). Where direct evidence of a defendant’s satellite signal piracy is unavailable, circumstantial evidence may suffice. Id. Here, plaintiff established exclusive ownership of the distribution rights to the Program. (ECF No. 1 at 6.) Plaintiff has provided evidence that defendants were never granted a sublicense to the Program. (Id.) However, an investigator visiting La Placita Taqueria on August 21, 2021, witnessed the Program being broadcast on a television within the establishment. (ECF No. 11

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G & G Closed Circuit Events, LLC v. La Placita RM Restaurant Inc., (E.D. Cal. 2023).

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