Joe Hand Promotions Inc v. JWC Management LLC

CourtDistrict Court, E.D. Arkansas
DecidedApril 26, 2021
Docket4:19-cv-00569
StatusUnknown

This text of Joe Hand Promotions Inc v. JWC Management LLC (Joe Hand Promotions Inc v. JWC Management LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joe Hand Promotions Inc v. JWC Management LLC, (E.D. Ark. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

JOE HAND PROMOTIONS INC. PLAINTIFF

v. Case No. 4:19-cv-00569-LPR

JWC MANAGEMENT LLC d/b/a/ BIG D’S SPORTS BAR DEFENDANTS and JASON CASTILLOW DEFAULT JUDGMENT ORDER On August 15, 2019, Plaintiff Joe Hand Promotions Inc. filed a Complaint in the Eastern District of Arkansas.1 The Complaint alleges that on April 8, 2017, Defendants JWC Management LLC and Jason Castillow intentionally pirated Ultimate Fighting Championship® 210: Cormier v. Johnson 2, a broadcast over which Plaintiff held the exclusive commercial distribution rights.2 The Complaint alleges that this act of piracy violated 47 U.S.C. § 553 and 47 U.S.C. § 605.3 Defendants have failed to plead or otherwise defend against the allegations in Plaintiff’s Complaint.4 And Defendants have not appeared in the case. Pursuant to Plaintiff’s request, the Clerk of the Court entered default against Defendants.5 Now before the Court is Plaintiff’s Motion for Default Judgment under Federal Rule of Civil Procedure 55(b)(2).6 The Court will grant Plaintiff’s Motion for the following reasons.

1 Pl.’s Compl. (Doc. 1). 2 Id. ¶ 1. 3 Id. ¶¶ 14-17. 4 Pl.’s Request for Entry of Default (Docs. 5); Clerk’s Entry of Default (Doc. 6). 5 Pl.’s Request for Entry of Default (Docs. 5); Clerk’s Entry of Default (Doc. 6). Plaintiff’s Request for Entry of Default includes a Declaration from Plaintiff’s attorney, Kelly W. McNulty, stating that Defendants are not members of the Armed Forces of the United States, infants, or incompetent persons. Pl.’s Request for Entry of Default (Docs. 5) at 3. 6 Pl.’s Mot. for Default J. (Doc. 7). Facts When default is entered, the facts in the complaint (aside from those relating to damages) are taken as true.7 In fact, “the ‘defendant is deemed to have admitted all well pleaded allegations in the complaint.’”8 Defendant JWC Management LLC is an Arkansas business that has operated, maintained, controlled, and conducted business as Big D’s Sports Bar (“Big D’s”).9 On the date

of the alleged piracy, Defendant Jason Castillow was an officer, director, shareholder, member and/or principal of JWC Management LLC.10 Plaintiff “is a company that specializes in distributing and licensing premier sporting events to commercial locations such as bars, restaurants, lounges, clubhouses and similar establishments.”11 Since 2001, Plaintiff has been the exclusive domestic distributor for the Ultimate Fighting Championship®.12 And on April 8, 2017, Plaintiff held the exclusive commercial distribution rights to the broadcast of Ultimate Fighting Championship® 210: Cormier v. Johnson 2 (the “Program”), including all undercard bouts and commentary.13 “The Program broadcast originated via satellite uplink, and was subsequently re-transmitted interstate to cable systems and satellite television companies via satellite signal.”14

“Defendants could have contracted with Plaintiff and purchased authorization to exhibit

7 Martinizing Int’l, LLC v. BC Cleaners, LLC, 855 F.3d 847, 850 (8th Cir. 2017). 8 Sullivan & Assocs., LLC v. Holladay, No. 3:09CV00079 JLH, 2010 WL 582790, at *1 (E.D. Ark. Feb. 16, 2010) (quoting Taylor v. City of Ballwin, 859 F.2d 1330, 1333 n. 7 (8th Cir.1988)). 9 Pl.’s Compl. (Doc. 1) ¶ 2. 10 Id. ¶ 3. 11 Id. ¶ 6. 12 Id. 13 Id. ¶ 1. 14 Id. ¶ 7. the Program in [Big D’s] for a fee.”15 But Defendants did not “contract with Plaintiff or pay a fee to Plaintiff to obtain the proper license or authorization.”16 “At no time did Plaintiff give Defendants license, permission or authority to receive and exhibit the Program” in Big D’s.17 Instead, Defendants willfully intercepted or received the interstate communication of the Program via “unauthorized satellite transmission or, alternatively, by unauthorized receipt over a cable

system.”18 Defendants then “unlawfully transmitted, divulged and published” the Program to patrons in Big D’s.19 The Complaint alleges that, on the night of the Program, Defendant Castillow (1) “was an officer, director, shareholder, member and/or principal of the entity owning and operating [Big D’s]” (2) “directly participated in and/or assisted in [Big D’s] unauthorized exhibition of the Program,” (3) “had a right and ability to supervise the activities of [Big D’s],” and (4) “had an obvious and direct financial interest in the activities of [Big D’s].”20 Aside from the factual allegations in the Complaint, Plaintiff provided multiple exhibits in support of its Motion for Default Judgment. The first exhibit is the Declaration of Kelly W. McNulty, Plaintiff’s attorney.21 Attached to this Declaration “is a true and correct screenshot

(image that shows the contents of a computer display) of a Facebook post wherein the exhibition of [the Program] at Big D’s . . . was advertised.”22 The screenshot appears to have been taken three days prior to the Program being aired.23 The “Details” section of the page says in full: “Big

15 Id. ¶ 9. 16 Id. 17 Id. 18 Id. ¶ 10. 19 Id. 20 Id. ¶ 3. 21 Ex. 1 to Pl.’s Mot. for Default J. (Doc. 7-1) at 2-3. 22 Id. at 2. 23 Id. at 5. D’s Sports Bar will be hosting Saturday nights UFC fight. There will be a small cover of $5, great beer and drink specials, and food on site.”24 The second exhibit to Plaintiff’s Motion for Default Judgment is an Affidavit from Joe Hand, Jr., “the President of Plaintiff, JOE HAND PROMOTIONS, INC.”25 Among other things, Mr. Hand’s Affidavit explains the erosion of Plaintiff’s sales at the hands of “signal pirates” and

Plaintiff’s nationwide effort to police its signals.26 Mr. Hand’s Affidavit states that Plaintiff has “retained, at considerable expense, auditors and law enforcement personnel to detect and identify signal pirates.”27 Plaintiff hired Lisa Strawn to audit Big D’s for signal pirates on the night of the Program.28 Plaintiff’s third exhibit is Ms. Strawn’s Affidavit.29 The Affidavit states that, on the night of the Program, Ms. Strawn paid a $5 cover charge to enter Big D’s.30 The Program was displayed on only one 42" television, which was located behind the bar.31 Ms. Strawn estimated that Big D’s capacity was approximately 75 people, but that she only counted 6-12 people on location during the Program’s exhibition.32 The Affidavit states that the bartender “apologized for the quality of

the fight” and that the bartender explained that Big D’s “tried to buy it off pay per view but couldn’t get it, so someone had to bring it on a USB.”33

24 Id. The Declaration also provides an estimate of reasonable attorneys’ fees and costs associated with this litigation. Id. at 3. 25 Ex. 2 to Pl.’s Mot. for Default J. (Doc. 7-1) at 7-11. 26 Id. at 8-10. 27 Id. at 8. 28 Id. at 9-10. 29 Ex. 3 to Pl.’s Mot. for Default J. (Doc. 7-1) at 13-14. 30 Id. at 13. 31 Id. 32 Id. 33 Id. The fourth exhibit Plaintiff provided in support of its Motion for Default Judgment is the “Rate Card” that was in effect at the time of the Program’s broadcast.34 The rate that should have been paid to Plaintiff depended on the purchasing establishment’s maximum fire code occupancy.35 For an establishment with a maximum capacity of 0-50 persons, the commercial sublicense fee for the Program would have been $788.36 For an establishment with a maximum

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Bluebook (online)
Joe Hand Promotions Inc v. JWC Management LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joe-hand-promotions-inc-v-jwc-management-llc-ared-2021.