Innovative Sports Marketing, Inc. v. Aquarius Fuente De Soda, Inc.

CourtDistrict Court, E.D. New York
DecidedAugust 26, 2025
Docket1:07-cv-02561
StatusUnknown

This text of Innovative Sports Marketing, Inc. v. Aquarius Fuente De Soda, Inc. (Innovative Sports Marketing, Inc. v. Aquarius Fuente De Soda, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Innovative Sports Marketing, Inc. v. Aquarius Fuente De Soda, Inc., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ---------------------------------------------------------X INNOVATIVE SPORTS MARKETING, INC.,

REPORT AND RECOMMENDATION Plaintiff, 07 CV 2561 (ENV) (CLP)

-against-

AQUARIUS FUENTE DE SODA, INC., et al.,

Defendants. ---------------------------------------------------------X

POLLAK, United States Magistrate Judge:

On June 21, 2007, plaintiff Innovative Sports Marketing, Inc. (“plaintiff”) filed this action against defendants Aquarius Fuente De Soda, Inc. d/b/a Aquarius Sports Bar (“Aquarius Sports Bar”) and Fernando Muriel, individually and as the owner of Aquarius Sports Bar (collectively, “defendants”), alleging that defendants had engaged in the illegal theft of cable television services through the use of an electronically modified cable television decoder device to broadcast a 2004 soccer match between Peru and Argentina, in violation of the Federal Communications Act of 1934, as amended, 47 U.S.C. §§ 553, 605. (ECF No. 1). Currently pending before this Court on referral from the district judge, is defendant Muriel’s May 1, 2024, Motion to vacate the default judgment entered against him on September 30, 2009, arguing that the court lacked personal jurisdiction over him because he was never properly served with the Summons and Complaint in this matter. (ECF No. 22). For the reasons set forth below, the Court respectfully recommends that defendant Muriel’s Motion to vacate be granted.

1 FACTUAL AND PROCEDURAL BACKGROUND According to the Complaint filed with the court, plaintiff entered into a licensing agreement to distribute the June 30, 2004 soccer match between Peru and Argentina (the “Event”), via closed circuit television and encrypted satellite signal, to commercial

establishments for a licensing fee. (Compl. ¶¶ 8, 9, 11). Plaintiff alleged that the defendants did not purchase the rights to intercept and exhibit this encrypted soccer match from the plaintiff, but intercepted and exhibited the same to patrons in Aquarius Sports Bar without legal authorization. (Id. ¶¶ 13, 15, 17). In light of the fact that the defendants never entered into a contract with plaintiff to broadcast the soccer match and were not authorized in any way to intercept, receive or transmit the soccer match, plaintiff filed this action seeking damages pursuant to 47 U.S.C. § 605(a). After defendants failed to answer or otherwise respond to the complaint, plaintiff filed an application for entry of default, which was entered by the Clerk of Court on November 13, 2007. (ECF No. 7). Thereafter, plaintiff moved for a default judgment and that motion was referred to

the undersigned to conduct an inquest on damages and prepare a Report and Recommendation. On July 15, 2009, this Court issued a Report and Recommendation that the motion be granted. (ECF No. 17). The district court adopted the Report and Recommendation on September 30, 2009 (ECF No. 19), and the Clerk entered judgment against defendants, awarding plaintiff $13,000 in statutory damages and $1,470 in costs. (ECF No. 20). Defendant Muriel filed the instant Motion to vacate the default judgment on May 1, 2024, and the motion was referred to the undersigned by the district judge on June 11, 2025. On July 29, 2025, this Court held a hearing at which defendant Muriel and his wife, Alexandra Muriel,

2 testified and defendant presented evidence. Plaintiff relied primarily on the process server’s affidavit of service, sworn to on July 9, 2007, and filed by plaintiff’s counsel on July 12, 2007. Based on the testimony of the witnesses and the evidence presented at the hearing, the Court respectfully recommends that the previously entered default judgment be vacated for lack

of personal jurisdiction.

DISCUSSION Rule 60(b) of the Federal Rules of Civil Procedure sets forth the bases on which a court may vacate or amend a previously entered judgment or order: On motion and upon such terms as are just, the court may relieve a party or a party’s legal representative from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence . . .; (3) fraud . . ., misrepresentation, or other misconduct of an adverse party; (4) the judgment is void; (5) the judgment has been satisfied, released, or discharged . . .; or (6) any other reason justifying relief from the operation of the judgment.

Fed. R. Civ. P. 60(b). A motion under the Rule is committed to the sound discretion of the court, see In re Emergency Beacon Corp., 666 F.2d 754, 760 (2d Cir. 1981); see also Klapprott v. United States, 335 U.S. 601, 614-15 (1949); Griffin v. Swim-Tech Corp., 722 F.2d 677, 680 (11th Cir. 1984), and although courts have held that the Rule should be liberally construed so as to do “substantial justice,” see MIF Realty L.P. v. Rochester Assocs., 92 F.3d 752, 755 (8th Cir. 1996); Seven Elves, Inc. v. Eskenazi, 635 F.2d 396, 401 (5th Cir. 1981), the Rule provides for extraordinary relief and may be invoked only upon a showing of exceptional circumstances. See Rinieri v. News Syndicate Co., 385 F.2d 818, 822 (2d Cir. 1967); see also Ben Sager Chems.

3 Int’l, Inc. v. E. Targosz & Co., 560 F.2d 805, 809 (7th Cir. 1977); Hoffman v. Celebrezze, 405 F.2d 833, 835 (8th Cir. 1969). In seeking to vacate the default judgment, defendant Muriel relies on subsection (4) of Rule 60, arguing that the judgment is void because the Court lacked personal jurisdiction over

the defendants because they were never properly served with the Summons and Complaint. A. Sufficiency of Service Personal jurisdiction is a necessary prerequisite to entry of a default judgment. If a defendant does not receive service in compliance with Rule 4 of the Federal Rules of Civil Procedure and does not waive formal service, the court lacks personal jurisdiction over the defendant. See Martin v. New York State Dep’t of Mental Hygiene, 588 F.2d 371, 373 (2d Cir. 1978); see also Michaelson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 709 F. Supp. 1279, 1282 (S.D.N.Y. 1989) (stating that proper service on a defendant of a summons and complaint is a prerequisite to personal jurisdiction). A default judgment is considered “void” if the court lacks jurisdiction over the parties. City of N.Y. v. Mickalis Pawn Shop, LLC, 645 F.3d 114, 138

(2d Cir. 2011); see also Sartor v. Toussaint, 70 F. App’x 11, 13 (2d Cir. 2003).

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