J. Walter Thompson P.R., Inc. v. Latin Am. Music Co.

355 F. Supp. 3d 110
United States District Court·Decided January 14, 2019·No. Civil No. 17-1094 (FAB)·Published·Cited by 3 cases

Opinion

BESOSA, District Judge.

Before the Court is Peer International Corporation of Puerto Rico ("Peer International")'s motion for attorney's fees, costs and sanctions. (Docket No. 66.) The Court referred Peer International's motion to a magistrate judge for a Report and Recommendation ("R & R"). (Docket No. 68.) For the reasons set forth below, the R & R is GRANTED IN PART and DENIED IN PART . Peer International's motion for attorney's fees, costs and sanctions is GRANTED.

*113I. Background

Walgreens Company ("Walgreens") commissioned J. Walter Thompson Puerto Rico ("Walter Thompson") to produce a marketing campaign for the 2016 Christmas season. (Docket No. 1 at p. 3.) Walter Thompson procured a license from music publisher Peer International to use "Llegó la Navidad" by Raúl Balseiro ("the composition"). Id. at p. 2. Peer International issued the license to Walter Thompson for a $5,500.00 fee. Id. After the marketing campaign aired throughout Puerto Rico, defendants Latin American Music Company, Inc. ("LAMCO") and ACEMLA de Puerto Rico, Inc. ("ACEMLA") informed Walgreens that they possessed exclusive rights to the composition. Id. at pp. 2-3.1

To resolve competing claims of ownership regarding "Llegó la Navidad," Walter Thompson filed an interpleader complaint pursuant to Federal Rule of Civil Procedure 22. (Docket No. 1.) In addition to answering the interpleader complaint, LAMCO and ACEMLA set forth copyright infringement claims against Walter Thompson, Peer International, and Walgreens. (Docket No. 14.) Peer International moved for judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c). (Docket No. 52.) The doctrine of collateral estoppel compelled this Court to grant Peer International's motion for judgment on the pleadings. J. Walter Thompson P.R., Inc. v. Latin Am. Music. Co., 308 F.Supp.3d 611 (D.P.R. 2018) (Besosa, J.).

Because LAMCO and ACEMLA's copyright infringement claims are frivolous, the Court issued an Order to Show Cause pursuant to Federal Rule of Civil Procedure 11 (" Rule 11"). J. Walter Thompson P.R., Inc., 308 F.Supp.3d at 618. Rule 11 provides that:

By presenting to the court a pleading, written motion, or other paper [...] an attorney or unrepresented party certifies that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances ... the claims, defenses, and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing law or for establishing new law.

Fed. R. Civ. P. 11(b)(2). Jelka L. Duchesne ("Duchesne"), Ibraham Latiff-Carrasquillo (Latiff"), Robert Penchina ("Penchina"), and Kelly D. Talcott ("Talcott") appeared on behalf of LAMCO and ACEMLA. (Docket Nos. 10, 13, 30 and 32.) The Court ordered each attorney:

to submit individual filings addressing (1) whether LAMCO and ACEMLA claimed to own "Llegó la Navidad," (2) on what basis counsel filed documents to the Court representing that LAMCO and ACEMLA own "Llegó la Navidad," and (3) why the Court should not impose sanctions pursuant to Rule 11.

J. Walter Thompson P.R., 308 F.Supp.3d at 618. Only Talcott failed to comply with the Court's Order to Show Cause. (Docket Nos. 58-60.)

Peer International moved for sanctions against LAMCO and ACEMLA pursuant to 28 U.S.C. section 1927 (" section 1927"). (Docket No. 66 at p. 24.) The Court referred Peer International's motion "for a report and recommendation on attorney's fees and sanctions." (Docket No. 68.) The *114Order to Show Cause, however, remained before the Court.

The magistrate judge recommended that (1) LAMCO and ACEMLA pay $107,181.00 in attorney's fees, and (2) that the Court forgo the imposition of sanctions. (Docket No. 78.) Peer International does not object to the magistrate judge's recommendation concerning the award of attorney's fees. (Docket No. 80 at p. 5.)2 Consequently, the Court ADOPTS the magistrate judge's recommendation that LAMCO and ACEMLA pay $107,181.00 in attorney's fees. (Docket No. 78 at p. 13.) Peer International does object, however, to the magistrate judge's recommendations regarding sanctions. (Docket No. 80 at p. 6.) According to Peer International, the magistrate judge "issued recommendations regarding the Court's Order to Show Cause ... under Federal Rule of Civil Procedure 11, ... not regarding Peer's motion for sanctions under 28 U.S.C. § 1927." Id. The Court agrees.

I. Standard of Review

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J. Walter Thompson P.R., Inc. v. Latin Am. Music Co., 355 F. Supp. 3d 110 (usdistct 2019).

355 F. Supp. 3d 110 (J. Walter Thompson P.R., Inc. v. Latin Am. Music Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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