The National Academy of Television Arts and Sciences, Inc. v. Multimedia System Design, Inc.

CourtDistrict Court, S.D. New York
DecidedFebruary 21, 2023
Docket1:20-cv-07269
StatusUnknown

This text of The National Academy of Television Arts and Sciences, Inc. v. Multimedia System Design, Inc. (The National Academy of Television Arts and Sciences, Inc. v. Multimedia System Design, Inc.) 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
The National Academy of Television Arts and Sciences, Inc. v. Multimedia System Design, Inc., (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT DDOACTE # :F ILED: 2/21/20 23 SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------- X THE NATIONAL ACADEMY OF TELEVISION : ARTS AND SCIENCES, INC. and ACADEMY : OF TELEVISION ARTS & SCIENCES, : : Plaintiffs, : 20-CV-7269 (VEC) : -against- : ORDER : MULTIMEDIA SYSTEM DESIGN, INC. : d/b/a “CROWDSOURCE THE TRUTH”, : : Defendant. : -------------------------------------------------------------- X VALERIE CAPRONI, United States District Judge: On September 4, 2020, the National Academy of Television Arts and Sciences and the Academy of Television Arts & Sciences (the “Academies”) sued Multimedia System Design, Inc., d/b/a Crowdsource the Truth (“MSDI”) for violating their copyright and trademark on the Emmy statuette and for defamation. See Compl., Dkt. 1; see also Am. Compl., Dkt. 62. Thus began unusual litigation that, on February 22, 2022, culminated in the entry of default judgment against MSDI. See Dkt. 157 (the “Final Judgment”).1 The default was triggered when MSDI failed to hire an attorney to represent it after its initial attorney was relieved. See Dkt. 131. On January 24, 2023, Jason Goodman, the sole shareholder and employee of MSDI, acting pro se, filed a Notice of Motion for Relief from Judgment pursuant to Fed. R. Civ. P. 1 This Court entered the Final Judgment on February 22, 2022; that same day, the Court entered a separate order sanctioning Jason Goodman for violating the parties’ protective order. See Dkt. 156. Mr. Goodman appealed the sanctions order, Dkt. 158; his appeal remains pending before the Second Circuit. See No. 22-592. On January 4, 2023, Goodman sought to add the Final Judgment to his appeal. See Case No. 22-592, Dkt. 70-1. On January 5, 2023, the Second Circuit denied Goodman’s request without prejudice to him submitting a Rule 60(b) motion with this Court. See id., Dkt. 74. 60(b)(3) and (6). Mot., Dkt. 167.2 Goodman, who is not a party to this case, moves the Court to vacate the Final Judgment that was entered against MSDI, to allow Goodman to intervene in the case, and to substitute Goodman as the proper Defendant. See id. Local Rule 6.3 of this Court provides that a motion for reconsideration of a court order

shall be served within 14 days “after the entry of the Court’s determination of the original motion, or in the case of a court order resulting in a judgment, within fourteen (14) days after the entry of the judgment.” See Local Rule 6.3. If a motion for reconsideration is untimely under the Local Rules, the court may treat it as a motion for reconsideration under Fed. R. Civ. P. 60(b), which must be made “no more than a year after the entry of the judgment or order or the date of the proceeding.” See Lora v. O’Heaney, 602 F.3d 106, 111 (2d Cir. 2010) (treating an untimely motion for reconsideration as having been filed under Rule 60(b)). Although Goodman’s notice of motion was untimely under Local Rule 6.3, it was timely under Rule 60(b). Rule 60 permits a court, in its discretion, to rescind or amend a final judgment or order in limited circumstances. See Cole v. Leverett, 2012 WL 527011, at *1 (E.D.N.Y. Feb. 15, 2012).

Rule 60(b)(3) provides that a court may “relieve a party . . . from a final judgment [or] order” if there was “fraud . . . misrepresentation, or misconduct by an opposing party.” Fed. R. Civ. P. 60(b)(3). The Court may also relieve a party based on “any other reason that justifies relief,” Fed. R. Civ. P. 60(b)(6); and nothing in Rule 60 limits “a court’s power to . . . set aside a judgment for fraud on the court,” Fed. R. Civ. P. 60(d)(3).

2 MSDI impleaded Goodman into this case; Goodman and MSDI then asserted a variety of counterclaims against the Plaintiffs. See Dkt. 45. The counterclaims were dismissed on July 30, 2021; that decision operated to dismiss Goodman from the case. See Dkt. 98. On February 3, 2022, Goodman moved to intervene, one year and five months after this lawsuit was commenced. See Dkt. 148. The Court denied his motion, finding, inter alia, that his interests were adequately represented as the sole owner and employee of the party defendant, MSDI. See Dkt. 151. The Second Circuit has held that Rule 60(b) constitutes “extraordinary judicial relief” and should be “invoked only upon a showing of exceptional circumstances.” Nemaizer v. Baker, 793 F.2d 58, 61 (2d Cir. 1986) (citation omitted). “The standard for granting such a motion is strict, and reconsideration will generally be denied unless the moving party can point to controlling

decisions or data that the court overlooked . . . .” Shrader v. CSX Transp. Inc., 70 F.3d 255, 257 (2d Cir. 1995). Goodman, who is not a party to this case and as to whom no judgment has been entered (beyond the dismissal of his counterclaim), provides no legal authority for his position that a non-party has standing to make a Rule 60 motion. Putting aside that rather large barrier of lack of standing, Goodman has pointed to no legal authority or evidence that the Court overlooked in entering the Final Judgment against MSDI, nor does he allege any exceptional circumstances that might otherwise justify relief under Rule 60. Rather, Goodman continues to peddle the same baseless arguments of fraud and misconduct against the Academies, their attorneys, and the Court as he and MSDI did during the litigation. As before, his theories include suspicion of a conspiracy between the Academies and his long-time internet nemesis D. George Sweigert.3

Goodman now claims that “Multimedia System Design, Inc., DBA Crowdsource the Truth, is a fallacy invented by Sweigert and capitalized upon by Plaintiffs,” who sued that company. Mot. at 5, Dkt. 167. Goodman’s theory appears to be that although he owns a corporation named Multimedia System Design, Inc., it is “dormant” and “unaffiliated” with Goodman’s YouTube activity that formed the basis for the Academies’ lawsuit. See id. at 1.

3 Sweigert and Goodman have jousted in court before. See, e.g., Goodman v. Sharp et al., No. 21-CV- 10627; Sweigert v. Goodman, No. 18-CV-8653. Consistent with the hostile relationship with one another, Sweigert moved to intervene in this case or, alternatively, to appear as an amicus. See Dkt. 84. His motion was denied. Dkt. 98. Sweigert again sought leave to appear as an amicus, representing that the Second Circuit had allowed him to docket an amicus brief in Goodman’s pending appeal. See Dkt. 166. It appears, however, that the Second Circuit has not yet decided Sweigert’s motion. See No. 22-592, Dkt. 98. According to Goodman, his antagonist Sweigert “invented” a company called Multimedia System Design, Inc., DBA Crowdsource the Truth, and somehow persuaded the Academies to sue that “fictional business entity.” Id. at 1, 5. Goodman, for reasons lost in the mist of the conspiracy, decided to defend that company, but because the Academies named the company as

the defendant, Goodman was forced to hire counsel to do so. See id. Goodman’s current assertions are belied by MSDI’s answer in this case (filed when it was still represented).

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The National Academy of Television Arts and Sciences, Inc. v. Multimedia System Design, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-national-academy-of-television-arts-and-sciences-inc-v-multimedia-nysd-2023.