Miami Dolphins, Ltd. v. First Class Cruises, LLC

CourtDistrict Court, S.D. Florida
DecidedJuly 17, 2023
Docket1:23-cv-21514
StatusUnknown

This text of Miami Dolphins, Ltd. v. First Class Cruises, LLC (Miami Dolphins, Ltd. v. First Class Cruises, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miami Dolphins, Ltd. v. First Class Cruises, LLC, (S.D. Fla. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 23-cv-21514-BLOOM/Otazo-Reyes

MIAMI DOLPHINS, LTD. and SOUTH FLORIDA STADIUM LLC,

Plaintiffs,

v.

FIRST CLASS CRUISES, LLC and JEFFREY NAHOM,

Defendants. ________________________________/

ORDER ON MOTION FOR DEFAULT FINAL JUDGMENT THIS CAUSE is before the Court upon Plaintiffs Miami Dolphins, Ltd.’s and South Florida Stadium LLC’s (“Plaintiffs”) Motion for Default Final Judgment, ECF No. [17] (“Motion”), filed on June 26, 2023. Defendant Jeffrey Nahom (“Nahom”) failed to appear, answer, or otherwise plead to the Complaint, ECF No. [1], despite having been served, so the clerk entered default against him on May 24, 2023. ECF No. [12]. Defendant First Class Cruises, LLC (“FCC”) also failed to appear, so the Clerk entered default against it on June 2, 2023. ECF No. [14]. The Court has carefully considered the Motion, the record in this case, the applicable law, and is otherwise fully advised. For the following reasons, Plaintiffs’ Motion is granted. I. BACKGROUND Plaintiffs brought this case on April 21, 2023, under this Court’s diversity jurisdiction, asserting four claims under Florida state law: (1) breach of contract against FCC; (2) promissory estoppel against FCC and Nahom; (3) unjust enrichment against FCC; and (4) fraudulent misrepresentation against FCC and Nahom. See Complaint, ECF No. [1]. Plaintiffs also attached to the Complaint four exhibits: (1) a Sponsorship Agreement, effective June 1, 2022 (the “Agreement”), see ECF No. [1-4]; (2) the First Amendment to Sponsorship Agreement, effective January 20, 2023 (the “Amendment”), see ECF No. [1-5]; (3) a Notice of Default, dated April 10, 2023, see ECF No. [1-6]; and (4) a Notice of Termination, dated April 18, 2023, see ECF No. [1- 7]. Plaintiffs seek damages in connection with FCC’s efforts to organize and operate a cruise marketed as a “Miami Dolphins Fan Cruise” (the “Fan Cruise”). In June 2022, Plaintiffs entered into the Agreement with Defendant FCC in connection with the Fan Cruise. See ECF No. [1] ¶¶ 2, 20; ECF No. [1-4]. Under the terms of the Agreement, Plaintiffs agreed to provide various benefits in support of the Fan Cruise and arrange for former or current Miami Dolphins players to participate in the Fan Cruise. See ECF No. [1] ¶ 24; ECF No. [1-4] at 1–6. In exchange, FCC agreed to make a Cash Payment of $525,000 for the 2022 Contract Year to Plaintiffs and also pay Plaintiffs an Appearance Fee Budget of $300,000. See ECF No. [1] ¶¶ 24–25; ECF No. [1-4].

FCC further agreed to provide each current or former Miami Dolphins player with a complimentary stateroom for the Fan Cruise. See ECF No. [1] ¶ 26; ECF No. [1-4] at 7–8. The Agreement also incorporated other terms and conditions, including but not limited to, a provision governing late payment remedies, a provision entitling the prevailing party to an award of expenses and reasonable attorney’s fees, a choice-of-law provision identifying the parties’ intent that any dispute be determined under Florida law, and a forum-selection clause that jurisdiction and venue “shall exclusively lie in the state and federal courts situated in Miami-Dade County, Florida.” See ECF No. [1] ¶ 27; ECF No. [1-4] at A-1–A-5. After the Miami Dolphins, Ltd. issued a press release on July 21, 2022, FCC began selling the Fan Cruise to the general public. See ECF No. [1] ¶¶ 28–29. Between July 21, 2022 and

February 4, 2023, FCC purportedly sold 259 staterooms for the Fan Cruise. Id. ¶ 30. FCC 2 represented that the Fan Cruise included, among other things, “room gratuities and main dining room gratuities” and “MSC’s1 Easy Plus beverage package.” Id. ¶ 31. FCC also represented that “Wi-fi is free for everyone in the Miami Dolphins Fan Cruise group.” In November 2022, the parties amended the Agreement and. in exchange for FCC agreeing to pay an additional incremental Cash Payment of $30,000.00, Plaintiffs would provide several additional benefits. Id. ¶ 34. Despite agreeing to pay the 2022 Cash Payment in three separate installments of $175,000.00 each, all of which were to be paid before December 1, 2022, see id. ¶ 24; ECF No. [1-4] at 7, FCC made one payment of $175,000.00 on August 26, 2022. See ECF No. [1] ¶ 32. On December 28, 2022, less than a week after the parties discussed FCC’s failure to pay the second and third installments of the 2022 Cash Payment, Nahom emailed Plaintiffs acknowledging that FCC owed Plaintiffs more than $650,000.00 for the 2022 Contract Year and proposed a revised

payment schedule. See id. ¶¶ 35–36. On January 6, 2023, FCC made a partial second payment of $100,000.00. See id. ¶ 38. In mid-January 2023, before agreeing to amend the Agreement, Plaintiffs requested assurances that FCC would be able to perform its remaining contractual obligations. See id. ¶ 40. Nahom assured Plaintiffs that FCC had no intention of canceling the Fan Cruise. See id. ¶ 41. Nahom also represented that “[a]ll booked guests are paid for and therefore the cruise line cannot cancel us,” and that “[a]ll venues, meals and alcohol are included in our cruise contract and there is nothing additional that needs to be paid to the cruise line to run our events.” See id. ¶ 41. In reliance on the representations made by FCC and Nahom personally, Plaintiffs agreed to amend the Agreement. See id. ¶ 43; ECF No. [1-5]. The Amendment memorialized the parties’ November

1 MSC Cruises, S.A. 3 2022 oral agreement and incorporated a revised payment schedule. See ECF No. [1] ¶¶ 44–47; ECF No. [1-5]. In mid-February 2023, FCC failed to pay Plaintiffs in accordance with the Amendment. See ECF No. [1] ¶ 48. FCC, however, again assured Plaintiffs that “many of the large costs have been paid already, including the cruise line” and that there were no other liabilities that it could not “pay that will impact the quality of the cruise or FCC’s ability to pay the Dolphins what is owed over time.” See id. ¶¶ 49–50. Less than a month before the Fan Cruise’s scheduled departure date, Nahom informed Plaintiffs that, despite his previous representations, FCC had not secured all of the staterooms necessary for the Fan Cruise. See id. ¶ 52. Contrary to the previous misrepresentations made by both FCC and Nahom, FCC had not secured 61 staterooms for which Miami Dolphins fans already had paid FCC, nor had FCC secured staterooms for any of the former Miami Dolphins players

who were central to the Fan Cruise. Id. ¶¶ 53–54. Instead, Nahom emailed Plaintiffs at around 2 p.m. on March 6, 2023, informing Plaintiffs that “MSC is holding cabins [sic] needed but will release them soon” and Nahom “need[ed] to get back to MSC [that] afternoon.” See id. ¶ 55. Nahom told Plaintiffs that they “must act now to salvage everything,” because “the alternative is much worse for everyone.” See id. ¶ 55. Nahom promised that if Plaintiffs paid the cruise operator, MSC, to secure the necessary staterooms, “every penny will get paid back.” See id. ¶ 55. Nahom followed up this correspondence by stating, “I take full responsibility for the situation I’ve put the Dolphins organization in” and will “pay the Dolphins back every penny.” See id. ¶ 57. FCC’s counsel also separately assured Plaintiffs that “if the final rooms are secured,” FCC “will be able to pay that money back to the Dolphins.” See id.

¶ 56. In reliance on the promises and assurances made by both FCC and Nahom personally, 4 Plaintiffs paid MSC the outstanding balance of $251,371.62 to avoid a last-minute cancellation and ensure that Miami Dolphins fans and players would have accommodations aboard the Fan Cruise. See id. ¶ 58. The Fan Cruise left the Port of Miami on April 2, 2023. See id. ¶ 59. During the Fan Cruise, Plaintiffs discovered that FCC had not paid MSC for amenities that were supposed to be included in fans’ bookings. See id. ¶ 63.

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