Serio v. Busack

District Court, D. Nevada·Decided May 3, 2023·No. 2:21-cv-01940·Unknown

Opinion

4 UNITED STATES DISTRICT COURT 5 DISTRICT OF NEVADA 6

7 SCOTT SERIO, Case No. 2:21-cv-01940-JAD-NJK 8 Plaintiff(s), REFERRAL TO STATE BAR OF 9 v. NEVADA

10 PREGAME LLC, et al., 11 Defendant(s). 12 Pursuant to Canon 3(B)(6) of the Code of Conduct for United States Judges, “[a] judge 13 should take appropriate action upon receipt of reliable information indicating the likelihood that . 14 . . a lawyer violated applicable rules of professional conduct.” As will be discussed more fully 15 below, the Court finds that there is a likelihood that these lawyers violated the rules prohibiting 16 the unauthorized practice of law (Nev. R. Prof. Cond. 5.5(a)(1)), the assistance of another’s 17 unauthorized practice of law (Nev. R. Prof. Cond. 5.5(a)(2)), and a lack of candor (Nev. R. Prof. 18 Cond. 3.3).1 19 I. BACKGROUND 20 This is a copyright infringement action arising out of the use of Plaintiff’s photograph in a 21 website’s article about betting odds for the 2017 Kentucky Derby. See Docket No. 1-2.2 In seeking 22 default judgment, a sworn declaration identified out-of-state attorneys with SR IP Law (Jonah 23 Grossbardt and Matthew Rollin) as the “Primary Counsel[]” who engaged in the bulk of legal work 24 in this case. Docket No. 13-2 at ¶ 7; see also id. at ¶¶ 13-17 (claiming 25.3 hours expended by SR 25 1 The Court makes no finding that the rules have been violated; the Court finds that reliable 26 information exists indicating a likelihood that the rules were violated. Nonetheless, the Court takes very seriously the action of referring attorneys to the bar, so it will explain why it is doing so. 27 2 Citations to “Docket No. __” herein refer to docket entries in this specific case. 28 References to docket entries made in other cases will be preceded by the name of those cases. 1 IP Law on this case). The declaration also identified in-state attorneys with Randazza Legal Group 2 (Marc Randazza, Ronald Green, and Trey Rothell) as “local counsel,” who expended markedly 3 less time in this case. Id. at ¶ 6; see also id. at ¶¶ 18-21 (claiming 10.3 hours expended by Randazza 4 Legal Group on this case). Given that the out-of-state attorneys never appeared as counsel of 5 record and are not licensed to practice in Nevada, the Court issued an order to show cause as to 6 whether the circumstances showed the unauthorized practice of law by the out-of-state attorneys 7 and the aiding of the unauthorized practice of law by the in-state attorneys. Docket No. 16. The 8 attorneys filed a response. Docket No. 19. 9 II. UNAUTHORIZED PRACTICE OF LAW 10 Both the unauthorized practice of law and the aiding of another’s unauthorized practice of 11 law violate Nevada’s ethical rules. Nev. R. Prof. Cond. 5.5(a). Such conduct may lead to 12 disciplinary proceedings and other adverse consequences. See, e.g., In re Discipline of Lerner, 13 197 P.3d 1067 (Nev. 2008) (en banc) (publicly reprimanding Nevada attorney for assisting in an 14 Arizona-based attorney’s unauthorized practice of law). 15 This District has established two primary methods for an attorney to become authorized to 16 practice law here. First, that attorney may apply to be admitted to the bar of this Court. Local 17 Rule IA 11-1(a)(1). This process requires, inter alia, that the attorney is admitted to practice before 18 the Supreme Court of Nevada and remains in good standing therewith. Id. Second, an attorney 19 may apply to be admitted to practice in a particular case. Local Rule IA 11-2(a). This process 20 requires, inter alia, the payment of a fee, Local Rule IA 11-2(b), and the absence of regular practice 21 in this Court by the applicant, Local Rule IA 11-2(h). It is undisputed that the out-of-state SR IP 22 Law attorneys are not members of the Nevada bar, are not admitted to practice in this District, and 23 did not apply to appear in this case pro hac vice. 24 The order to show cause response indicates that the out-of-state attorneys were not engaged 25 in the unauthorized practice of law, casting them as merely assisting from afar and representing 26 that it was the Nevada attorneys at Randazza Legal Group who were ultimately in charge. See, 27 e.g., Docket No. 19 at 3. In so doing, the response points specifically to exceptions to the rules 28 against unauthorized practice of law. For example, the response relies on an exception that applies 1 when a “lawyer is engaged in the occasional representation of a client in association with a lawyer 2 who is admitted in this jurisdiction and who has actual responsibility for the representation and 3 actively participates in the representation, provided that the out-of-state lawyer’s representation of 4 the client is not part of a regular or repetitive course of practice in this jurisdiction.” Nev. R. Prof. 5 Cond. 5.5(b)(5); see also Docket No. 19 at 6 (invoking this exception). The response also relies 6 on an exception when a “lawyer is representing a client, on an occasional basis and not as part of 7 a regular or repetitive course of practice in this jurisdiction, in areas governed primarily by federal 8 law, international law, or the law of a foreign nation.” Nev. R. Prof. Cond. 5.5(b)(6); see also 9 Docket No. 19-8 at ¶ 10 (invoking this exception). 10 The invocation of these exceptions does not assuage the Court’s concerns. First, both 11 exceptions are subject to a caveat that the lawyering be occasional and irregular. The papers 12 indicate that counsel did not “regularly practice law” in Nevada, e.g., Docket No. 19-3 at ¶ 6, or 13 engage in “business” in Nevada, e.g., Docket No. 19 at 9. However, the records in this courthouse 14 raise significant concerns as to the veracity of those statements. See Reyn’s Pasta Bella, LLC v. 15 Visa USA, Inc., 442 F.3d 741, 746 n.6 (9th Cir. 2006) (courts may take judicial notice of the filings 16 on the docket in other cases). Indeed, one recent case (not cited in the papers) on its face involves 17 substantially similar circumstances by the same set of lawyers. Creative Photographers Inc. v. 18 Beautiful People L.L.C., Case No. 2:21-cv-2160-GMN-EJY (D. Nev. Dec. 7, 2021). In that case, 19 attorneys for the Randazza Legal Group filed a complaint for copyright infringement. Creative 20 Photographers, Docket No. 1. After the defendant failed to appear, the Randazza Legal Group 21 sought entry of default and then filed a motion for default judgment. Creative Photographers, 22 Docket No. 12. Although they had never appeared as attorneys of record, the bulk of legal fees 23 sought in that motion for default judgment arose from the work of attorneys Grossbardt and Rollin 24 of SR IP Law, along with their staff. See Creative Photographers, Docket No. 12-2. SR IP Law 25 is identified in that case as “Plaintiff’s Primary Counsel[]” and Randazza Legal Group is identified 26 as “local counsel.” Creative Photographers, Docket No. 12-2 at 2. Hence, SR IP Law’s remote 27 legal practice is not an isolated incident. 28 1 Moreover, there are a number of other cases that may involve the same conduct, but in 2 which the record does not include a motion for default judgment, paperwork seeking attorneys’ 3 fees, or other documentation that on its face would show whether out-of-state counsel were 4 similarly involved. For example, the record here makes clear that SR IP Law has represented 5 Plaintiff “over the years” in cases using their litigation templates. Docket No. 19-3 at ¶ 9; see also 6 Docket No. 19-1 at ¶ 3. Plaintiff Serio is the owner of Eclipse Sportswire, Docket No. 13-1 at ¶ 7 3, which recently filed two other copyright infringement actions initiated by the Randazza Legal 8 Group that appear to reflect the same form complaint, see Eclipse Sportswire v. LIR Indus. LLC, 9 Case No. 2:22-cv-00748-JCM-DJA, Docket No. 1 (D. Nev. May 10, 2022); Eclipse Sportswire v. 10 Vegas Sports Information Network, LLC, Case No.

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