Stars for Art Production Fz, LLC v. Dandana, LLC

806 F. Supp. 2d 437, 2011 U.S. Dist. LEXIS 93657, 2011 WL 3678931
CourtDistrict Court, D. Massachusetts
DecidedAugust 22, 2011
DocketCivil Action 10-10629-JLT
StatusPublished
Cited by10 cases

This text of 806 F. Supp. 2d 437 (Stars for Art Production Fz, LLC v. Dandana, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stars for Art Production Fz, LLC v. Dandana, LLC, 806 F. Supp. 2d 437, 2011 U.S. Dist. LEXIS 93657, 2011 WL 3678931 (D. Mass. 2011).

Opinion

MEMORANDUM

TAURO, District Judge.

I. Introduction

An Egyptian corporation, Stars for Art Production FZ LLC (“Plaintiff’), owns a *439 music channel, originally entitled “Zoom” and later replaced with “Mazzika.” Plaintiff entered into a contract with a New Jersey corporation, Dandana, LLC (“Dandana”). The contract provided Dandana a license to broadcast that music channel and the channel was transmitted into Massachusetts through the services of Dish DBS Corporation (“Dish DBS”), Dish Network Corporation (“Dish Network”), and Dish Network LLC (“Dish LLC”) (collectively “Dish” or “the Dish Defendants”), which are all predominately based in Colorado.

Plaintiff sued both Dandana and Dish (collectively “Defendants”), primarily alleging that Dandana failed to pay certain fees owed under Plaintiffs and Dandana’s contract. 1 Defendants, however, contend that this court lacks personal jurisdiction over Defendants and that venue is improper. Presently at issue are Defendants’ Motion to Dismiss Amended, Complaint [# 25] and Plaintiffs Motion for Leave to Conduct Jurisdictional Discovery with Statement of Reasons [# 30], For the following reasons, Defendants’ Motion to Dismiss is ALLOWED IN PART and DENIED IN PART, and Plaintiffs Motion for Leave to Conduct Jurisdictional Discovery is DENIED WITHOUT PREJUDICE.

II. Background 2

Plaintiff, a United Arab Emirates LLC with its principal place of business there, 3 owns the music television channels “Zoom” and “Mazzika.” 4 Dish Network, a Nevada corporation with a principal place of business in Colorado, 5 provides, via satellite transmission, television channels to its subscribers. 6 Dish Network is the parent company of Dish DBS, which is the parent company of Dish LLC. 7 Dish DBS and Dish LLC are both organized under the laws of Colorado and have their principal places of business in Colorado. 8 The other Defendant, Dandana, provides Dish Network with certain television channels for Dish Network to broadcast to Dish Network’s subscribers. 9 Dandana owns or has the licensing rights to broadcast those channels on the Dish Network. 10

A. The Parties’ Agreement and License

Around March 9, 2005, Plaintiff entered into a written agreement with Dandana (“2005 Agreement”). 11 In the 2005 Agree *440 ment, Dandana acquired the exclusive licensing rights to broadcast the “Zoom” channel in the United States (the “License”). 12 In consideration for the License, Dandana promised and agreed to pay Plaintiff $180,000 per year, in quarterly installments. 13

Based on the 2005 Agreement, Dandana negotiated with Dish Network to have Dish Network broadcast the “Zoom” channel. 14 In exchange, Dish Network agreed to pay Dandana an amount of money based on the number of subscribers that paid Dish Network for the right to view the “Zoom” channel. 15

B.The Alleged Breach and Modification of the Agreement

Dandana subsequently failed to honor the 2005 Agreement by not paying Plaintiff the money that Dandana owed. 16 Around August 7, 2007, because of Dandana’s failure to pay, Plaintiff sought to terminate the 2005 Agreement. 17

On August 29, 2007, Dandana and Plaintiff instead modified the 2005 Agreement with an Addendum Agreement (“2007 Agreement”). 18 As part of the 2007 Agreement, Dandana and Plaintiff agreed that either party “shall have the right to refer any dispute ... to the federal courts of the United States. 19

Around January 19, 2009, Dandana and Plaintiff again amended the 2005 Agreement by substituting the “Mazzika” channel for the “Zoom” channel. 20

Dandana refused to pay Plaintiff money owed ($428,000) under the License. 21

On March 8, 2010, Plaintiff notified Dish Network of Dandana’s breach and requested that Dish Network cease broadcasting the “Mazzika” channel or withhold payment to Dandana pending a resolution of the dispute between Plaintiff and Dandana. 22 Dish Network did not comply with this request. 23

C. This Litigation

Plaintiff brings six counts against Defendants here: (I) breach of contract against Dandana; (II) breach of implied covenant of good faith and fair dealing against Dandana; (III) unjust enrichment against Dandana; (IV) quantum meruit against Dandana; (V) fraud and misrepresentation against Dandana; and (VI) quantum meruit against Dish Network. 24

D. Allegations that Allegedly Form the Basis of Personal Jurisdiction over Defendants

In addition to the facts above, Plaintiff alleges the following facts to support the exercise of personal jurisdiction over Defendants:

*441 Dish DBS is registered to do business in Massachusetts and all the Dish Defendants do business in the Commonwealth. 25 Dish LLC provides satellite programming to residents of Massachusetts. 26 Dish Network is the exclusive broadcaster of the “Mazzika” channel in Massachusetts. 27

Dish maintains a website that reaches into Massachusetts. Specifically, people in Massachusetts can order Dish’s products through Dish’s website. 28 People also can communicate with Dish’s representatives through a “realtime interactive chat.” 29

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Bluebook (online)
806 F. Supp. 2d 437, 2011 U.S. Dist. LEXIS 93657, 2011 WL 3678931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stars-for-art-production-fz-llc-v-dandana-llc-mad-2011.