J&J Sports Productions, Inc. v. Guzman

CourtDistrict Court, S.D. Texas
DecidedMarch 18, 2020
Docket7:19-cv-00328
StatusUnknown

This text of J&J Sports Productions, Inc. v. Guzman (J&J Sports Productions, Inc. v. Guzman) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J&J Sports Productions, Inc. v. Guzman, (S.D. Tex. 2020).

Opinion

UNITED STATES DISTRICT COURT March 18, 2020 SOUTHERN DISTRICT OF TEXAS David J. Bradley, Clerk MCALLEN DIVISION

J&J SPORTS PRODUCTIONS, INC., § § Plaintiff, § VS. § CIVIL ACTION NO. 7:19-cv-00328 § ZAMANTHA Z. GUZMAN, individually § and d/b/a MARISCOS LA CHIVIS and LA § CHIVIS MARISCOS, § § Defendant. §

OPINION AND ORDER

The Court now considers “Plaintiff’s Motion for Final Default Judgment.”1 Defendants have not responded and the time for doing so has passed.2 After considering the motion, record, and relevant authorities, the Court GRANTS Plaintiff’s motion. I. BACKGROUND AND PROCEDURAL HISTORY This is an antipiracy claim brought under the Federal Communications Act of 1934.3 Plaintiff is a broadcast corporation that alleges it had the exclusive right to sublicense a certain telecast.4 Plaintiff alleges that Defendant “intercepted the closed-circuit telecast of the September 17, 2016 Saul Alvarez v. Liam Smith WBO World Super Welterweight Championship Fight Program (the “Event”) and exhibited the Event in Defendant’s Establishment, Mariscos La Chivis (also known as La Chivis Mariscos) and located at 600 N. Shary Road, Mission, Texas

1 Dkt. No. 13 (Dec. 10, 2019). 2 See S.D. Tex. Civ. R. 7.4(A) (responses to motions must be filed within 21 days). 3 47 U.S.C. §§ 151–624. 4 Dkt. No. 1 at 2, ¶ 5. 78572 (the “Establishment”), without Plaintiff’s authorization and without paying the licensing fee to Plaintiff.”5 Plaintiff timely filed a complaint on September 15, 2019.6 A process server served Defendant on September 30, 2019.7 Defendant’s deadline to answer was October 21, 2019,8 but to date Defendant has neither appeared nor answered. Plaintiff sought entry of default on December 6, 2019,9 which this Court entered on December 9.10 In its December 9 order, this

Court instructed Plaintiff to refile a motion for default judgment after the Clerk’s entry of default.11 That motion is now before the Court.12 II. ANALYSIS a. Legal Standard Obtaining a default judgment is a three-step process: “(1) default by the defendant; (2) entry of default by the Clerk’s office; and (3) entry of a default judgment.”13 Once entry of default is entered, “plaintiff may apply for a judgment based on such default. This is a default judgment.”14 Defendant has defaulted by failing to answer or otherwise appear in this case and entry of default has already been made against her.15 The only remaining question is whether the

third step—actual entry of default judgment—is appropriate. Federal Rule of Civil Procedure 55(b) authorizes entry of default judgment with court approval, which is not lightly granted. Default judgments are a disfavored and drastic remedy,

5 Dkt. No. 13 at 1, ¶ 1. 6 Dkt. No. 1; see Prostar v. Massachi, 239 F.3d 669, 671 (5th Cir. 2001) (holding that a 3-year statute of limitations applies to claims under the Communications Act). 7 Dkt. Nos. 6, 11 at 2 n.9 (finding sufficient service). 8 FED. R. CIV. P. 12(a)(1)(A)(i). 9 Dkt. No. 7. 10 Dkt. Nos. 11–12. 11 Dkt. No. 11 at 3. 12 Dkt. No. 13 at 2, ¶ 6. 13 Bieler v. HP Debt Exch., LLC, No. 3:13-CV-01609, 2013 WL 3283722, at *2 (N.D. Tex. June 28, 2013) (citing N.Y. Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996)). 14 N.Y. Life Ins. Co. v. Brown, 84 F.3d 137, 141 (5th Cir. 1996). 15 Dkt. No. 11. resorted to only in extreme situations such as an unresponsive party.16 The Court will not grant default judgment automatically or as a matter of right, even where a defendant is in default.17 Whether to grant default judgment is left to the sound discretion of the District Court.18 Determining the propriety of default judgment is itself a three-step process. First, the Court must determine whether the Plaintiff’s claims are well-pled and substantively meritorious.19 After all, a defendant’s failure to answer or otherwise defend does

not mean the particular legal claims levied are valid and merit judgment against the defendant.20 When analyzing the merits of claims, the Court may assume the truth of all well-pled allegations in the Plaintiff’s complaint because Defendant, by her default, admits well-pled allegations of fact.21 But the Court will not hold the Defendant to admit facts that are not well-pled or to admit conclusions of law.22 Second, if Plaintiff states a well-pled claim for relief, the Court examines six factors to determine whether to grant default judgment: whether material issues of fact are at issue, whether there has been substantial prejudice, whether the grounds for default are clearly established, whether the default was caused by a good faith mistake or excusable neglect, the harshness of a default judgment, and whether the court would think itself obliged to set aside the default on the defendant’s motion.23

Third, if the plaintiff’s claims are meritorious and default judgment appears appropriate, the Court must determine whether the requested relief is proper. Specifically, default judgment

16 Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274, 276 (5th Cir. 1989). 17 Ganther v. Ingle, 75 F.3d 207, 212 (5th Cir. 1996). 18 Mason v. Lister, 562 F.2d 343, 345 (5th Cir. 1977). 19 See Wooten v. McDonald Transit Assocs., 788 F.3d 490, 498 (5th Cir. 2015). 20 See Nishimatsu Constr. Co. v. Hous. Nat’l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). 21 Id. 22 Id. 23 Lindsey v. Prive Corp., 161 F.3d 886, 893 (5th Cir. 1998). “must not differ in kind from, or exceed in amount, what is demanded in the pleadings.”24 The Court will determine how to calculate damages. The general rule is “unliquidated damages normally are not awarded without an evidentiary hearing” but the exception is for when “the amount claimed is a liquidated sum or one capable of mathematical calculation.”25 When this exception applies, there is no need for an evidentiary hearing and the Court can enter default

judgment on the briefing. b. Discussion 1. Whether Plaintiff’s Claim is Substantively Meritorious Plaintiff alleges Defendant violated 47 U.S.C. §§ 553 or 605,26 but moves for default judgment under section 605.27 Section 553 provides “[n]o person shall intercept or receive or assist in intercepting or receiving any communications service offered over a cable system, unless specifically authorized to do so by a cable operator or as may otherwise be specifically authorized by law.”28 Section 605 provides that “[n]o person not being authorized by the sender shall intercept any radio communication and divulge or publish the existence, contents, substance, purport, effect, or meaning of such intercepted communication to any person.”29 Both

sections are intended to provide for remedies and penalties to “protect the revenue of television cable companies from unauthorized reception of their transmissions,”30 but Plaintiff cannot

24 FED. R. CIV. P. 54(c); see also Ditech Fin., L.L.C. v. Naumann, 742 F. App’x 810, 813 (5th Cir.

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J&J Sports Productions, Inc. v. Guzman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jj-sports-productions-inc-v-guzman-txsd-2020.