North Jersey Media Group Inc. v. Fox News Network, LLC

312 F.R.D. 111, 2015 WL 7313875
CourtDistrict Court, S.D. New York
DecidedNovember 20, 2015
Docket14 Civ. 7630 (ER)
StatusPublished
Cited by25 cases

This text of 312 F.R.D. 111 (North Jersey Media Group Inc. v. Fox News Network, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Jersey Media Group Inc. v. Fox News Network, LLC, 312 F.R.D. 111, 2015 WL 7313875 (S.D.N.Y. 2015).

Opinion

OPINION AND ORDER

Edgardo Ramos, U.S.D.J.

New Jersey Media Group (“Plaintiff’ or “NJMG”) brought two actions, subsequently consolidated for trial, against Fox News Network, LLC (“Defendant” or “Fox News”) alleging that Fox News infringed on Plaintiffs copyright in its now iconic photograph of three firefighters raising the American flag at the ruins of the World Trade Center on September 11, 2001 (the “9/11 Photograph”) (the “Photo Claims”). Fox News later brought counterclaims against Plaintiff alleging copyright infringement and false endorsement claims for displaying on its website three short news video clips owned by Defendant and bearing the Defendant’s brand name (the “Video Counterclaims”). The video clips are unrelated to the 9/11 Photograph or each other. Plaintiff in turn filed a Third Party Complaint against the Daily Caller, Inc. (the “Daily Caller”) and News Distribution Network, Inc. (“NDN,” and collectively “Third Party Defendants”) seeking indemnification for Fox News’ copyright and trademark claims against it (the “Indemnification Claims”). Before this Court is Third Party Defendants’ motion, joined by Plaintiff, to sever the Video Counterclaims and the Indemnification Claims from the Photo Claims pursuant to Rule 21 of the Federal Rules of Civil Procedure. For the reasons discussed below, the motion to sever the Video Counterclaims and the Indemnification Claims is GRANTED.

I. Background

Plaintiff filed two related actions against Fox News under the Copyright Act, 17 U.S.C. § 101, alleging that Defendant infringed on the 9/11 Photograph. In the first action, brought on October 9, 2013, Plaintiff alleges that Jeanine Pirro1 posted an image [113]*113that juxtaposed the 9/11 Photograph with the classic World War II photograph of four U.S. Marines raising the American flag on Iwo Jima2 on a Faeebook page associated with Fox News’ television program Justice with Judge Jeanine (the “Fox News Action”). Doc. 1. On February 20, 2014, NJMG amended its complaint to add Fox News as a defendant. Doc. 12. In the second action, brought almost a year later on September 19, 2014, Plaintiff alleges that Fox News posted the 9/11 Photograph with the words “9/11/2001 Never Forget” imposed over the image on a Faeebook page associated with another Fox News television program, Special Report with Bret Baier (the “Baier Action”).3 Doe. 1.

For reasons not relevant here, it was not until June 11, 2015 that Fox News filed its Answer in the Baier Action. Doc. 22. Fox News also asserted counterclaims against Plaintiff under the Copyright Act, 17 U.S.C. § 101, for copyright infringement, and the Lanham Act, 15 U.S.C. § 1125(a), for false endorsement, for displaying three short news video clips on its website owned by Defendant and bearing Defendant’s brand names and featuring Fox News personalities. Id. The three video clips were of (1) a panel discussion entitled “Winners and Losers” originally broadcast on Fox News’ Special Report with Bret Baier, (2) an interview with New Jersey Governor Chris Christie on Fox News Sunday conducted by Chris Wallace, and (3) a public address by President Obama on November 5, 2014. Id. ¶¶ 13-17. At the time of the alleged infringement, the video clips were hosted by Third Party Defendant NDN and made available on Plaintiffs website allegedly without Fox News’ permission. Id. ¶ 23; see also Doc. 23 at ¶¶ 14,16; Doc. 52 at ¶ 14; Doe. 53 at ¶ 14. According to Fox News, a thirty-second advertisement promoting a third-party company played when a user attempted to watch the video clips. Doc. 22 at ¶¶ 22,31, 36.

At a conference held on June 25, 2015, this Court consolidated the Fox News Action and the Baier Action for trial and scheduled the trial for January 11, 2016. Hr’g Tr. 2:22-3:2. The parties agreed to wait until the close of discovery, scheduled for October 30, 2015, to decide whether the Video Counterclaims would be included in the January 2016 trial. Id. at 6:14-22,17:17-18:2.

On July 2, 2015, Plaintiff filed its Answer to Fox News’ Counterclaims and also filed a Third Party Complaint seeking indemnification for Fox News’ counterclaims from NDN and the Daily Caller. Doe. 23. According to Plaintiff, it had the right to provide access to the three video clips pursuant to a contract it entered with NDN on March 22, 2011. Id. ¶¶ 7-9, 17. Under that contract, NDN agreed to provide Plaintiff access to content for use on Plaintiffs website, warranted that the content provided did not infringe on any third party’s rights, and agreed to fully indemnify Plaintiff if it did. Id. ¶8. Plaintiff further contends that the Daily Caller in turn provided access to the three video clips to NDN as part of a contract between j;he Daily Caller and NDN whereby the Daily Caller represented and warranted that the content it provided would not infringe on any third party’s rights, and agreed to indemnify NDN and the entities NDN distributed content to for any breach of these representations and warranties. Id. ¶¶ 10-12,14.

On August 24, 2015, the Court scheduled a pre-motion conference regarding Third Party Defendants’ proposed motion to sever and granted their request to stay discovery in connection with the Video Counterclaims and the Indemnification Claims pending the conference. Doc. 39. At the pre-motion conference held on September 4, 2015, the Court granted Third Party Defendants leave to file the instant motion and continued the stay of discovery. Hr’g Tr. 28:8-10,31:20.

II. Discussion

Rule 21 of the Federal Rules of Civil Procedure provides that “[o]n motion or on its own, the court may at any time, on just terms, add or drop a party. The court may [114]*114also sever any claim against a party.” Fed. R. Civ. P. 21. The moving party bears the burden of demonstrating that “severance is required to avoid prejudice or confusion and to promote the ends of justice.” Agnesini v. Doctor’s Assoc., Inc., 275 F.R.D. 456, 458 (S.D.N.Y.2011); Bey v. City of N.Y., No. 99 Civ. 3873 (LMM), 2009 WL 1911742, at *1 (S.D.N.Y. June 30, 2009) (citing Lewis v. Triborough Bridge & Tunnel Auth., No. 97 Civ. 0607 (PKL), 2000 WL 423517, at *2 (S.D.N.Y. Apr. 19, 2000)). While “[t]he Federal courts view severance as a procedural device to be employed only in exceptional circumstances,” Oram v. SoulCycle LLC, 979 F.Supp.2d 498, 503 (S.D.N.Y.2013); Agnesini, 275 F.R.D. at 458 (same); Cia. Embotelladora del Pacifico v. Pepsi Cola Co., 256 F.R.D.

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Bluebook (online)
312 F.R.D. 111, 2015 WL 7313875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-jersey-media-group-inc-v-fox-news-network-llc-nysd-2015.