Woodhouse v. Meta Platforms Inc.

District Court, S.D. New York·Decided December 5, 2023·No. 1:23-cv-07000·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK BENJAMIN WOODHOUSE, Plaintiff, 23 Civ. 7000 (PAE) -\y- OPINION & ORDER META PLATFORMS INC.,, ef ail., Defendants,

PAUL A. ENGELMAYER, District Judge: This decision resolves a motion for a nationwide filing injunction against an unusually vexatious litigant. Benjamin Woodhouse is a lawyer licensed to practice in the State of California who owns and controls Havensight Capital LLC (“Havensight”), ostensibly a private equity company.! Defendants Nike, Inc. (“Nike”), Meta Platforms, Inc. (“Meta”), Gibson, Dunn & Crutcher LLP (“Gibson Dunn”), and Alphabet Inc. (“Alphabet”)’ seek an order declaring Woodhouse a vexatious litigant and enjoining him and any company he owns or controls from filing any civil action against any of them in any federal district court. Defendants note Woodhouse’s history of filing frivolous lawsuits against them making fantastical claims, that he has done so in courts in the Central District of California, the District of Columbia, and now this District, and that after

See Woodhouse vy. United States Gov’t (Government I), No. 21 Civ. 06372 (SB), 2021 WL 6333468, at *1 (C.D. Cal. Nov. 24, 2021), aff'd, No. 22-55045, 2023 WL 3600032 (9th Cir. May 23, 2023); see also Island Software & Computer Serv., Inc. v. Microsoft Corp., 413 F.3d 257, 261 (2d Cir. 2005) (“[U]nder Rule 201(b) of the Federal Rules of Evidence, a court may take judicial notice of facts that are ‘capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned.””). * There are other defendants in this action besides the four moving defendants. For the purposes of this decision, the Court here refers to the four moving defendants as “defendants.”

Woodhouse has been sanctioned and/or held in contempt, his modus operandi has been to bring similar such claims in new cases and venues. They note Woodhouse’s use of Havensight as a vehicle for such specious litigation. They argue that only by a nationwide filing injunction can Woodhouse’s campaign of harassing, provocative, and baseless litigation be brought to heel. For the following reasons, the Court agrees, and grants the motion. I. Overview and Procedural History Defendants’ motion for a nationwide filing injunction is based on Woodhouse’s long litigation history in federal court. The Court takes judicial notice of the following actions he has brought. See Int'l Star Class Yacht Racing Ass'n v. Tommy Hilfiger U.S.A., Inc., 146 F.3d 66, 70 (2d Cir. 1998) (“A court may take judicial notice of a document filed in another court not for the truth of the matters asserted in the other litigation, but rather to establish the fact of such litigation and related filings.” (citation and internal quotation marks omitted)), A. Woodhouse’s Relevant Litigation History 1. Nike Actions a. Nike □ On September 12, 2014, Woodhouse filed suit against Nike on behalf of Havensight. It claimed (1) intentional interference with contractual relations; (2) intentional interference with prospective economic relations; (3) negligence; (4) commercial misappropriation; (5) invasion of privacy; and (6) unfair competition and trade practices. Havensight Cap. LLC v, Nike, Inc. (Nike No. 14 Civ, 7153 (MLR), 2014 WL 12613382, at *1-3 (C.D. Cal. Nov. 19, 2014). It alleged that Nike had used Havensight’s St. Thomas F.C. brand name and design to sell Nike products. Id, at *3. It sought $98.6 million in compensatory and $150 million in punitive damages. See Nike f, 14 Civ. 7153, Dkt. 1 at 7.

Havensight, through Woodhouse, moved for summary judgment before Nike responded to the complaint. /d., Dkt. 14. After Nike moved to dismiss, Havensight made five requests for default judgment against Nike. /d., Dkt. 24. Havensight also sought a writ of execution, falsely claiming that a judgment of $248,610,000 had been entered against Nike. fd., Dkt. 18. The district court denied Havensight’s requests as spurious and dismissed the case with prejudice. See id., Dkt. 32; Nike I, 2014 WL 12613382, at *4. In dismissing, United States District Judge Manuel L. Real explained that Havensight “makes vague legal conclusions, and merely recites the elements of the causes of action instead of pleading facts, which give rise to a plausible claim.” Nike f, 2014 WL 12613382, at *3. Undeterred, Havensight filed 10 post-dismissal motions, applications, and requests for default judgment. These were all stricken or denied. Nike I, 14 Civ. 7153, Dkts. 54, 56, 58, 74, 79, 83, 85, 101, 107, 108. Havensight also requested judicial reassignment multiple times, each denied. See, e.g., id, Dkts. 71, 104. On March 31, 2015, the district court sanctioned Woodhouse in the amount of $1,000 and referred him to the California State Bar. Jd, Dkt. 110 at 6. It also declared Havensight a vexatious litigant. /¢., Dkt. 118 at 8. Because “nothing short of a pre-filing condition will stop Plaintiff’s frivolous filings,” the court imposed pre-filing conditions that Havensight had to follow “prior to filing any action that arises from or relates to Havensight Capital LLC and its brand ‘St, Thomas F.C.’ against Nike, Inc.” fd. at 7-8. b, Nike IT On November 20, 2014, the day after Nike J was dismissed with prejudice, Havensight, again through Woodhouse, filed a second lawsuit against Nike (“Nike IT’). See Havensight Cap. LLC v. Nike, Inc. (Nike If), No. 14 Civ. 8985. (MLR), Dkt. 1, It alleged that Nike’s minimum-

purchase requirements for soccer-related merchandise interfered with Havensight’s business. Jd. Havensight brought four claims, identical to those in Nike /: (1) intentional interference with contractual relations; (2) intentional interference with prospective economic relations; (3) negligence; (4) unfair competition and trade practices. Six days later, Havensight amended its complaint to add two claims: of (1) vertical and horizontal price fixing; and (2) civil violations of the Racketeer Influenced and Corrupt Organizations Act “RICO”). /d., Dkt. 7. Attached to the Amended Complaint was the purported affidavit of an interview of a sporting goods retailer, Francisco Mera, which stated that Nike had used its market strength to force purchases of its goods, thereby excluding competitors like Havensight. Nike II, No. 14 Civ. 8985 (MLR), 2015 WL 993344, at *1 (C.D. Cal. Feb. 18, 2015). Nike H was reassigned to Judge Real. After Nike moved to dismiss, Havensight filed multiple motions for default judgment. See Nike IT, No. 14 Civ. 8985 (MLR), Dkts. 43, 45, 47, 50, 72. Before the district court could rule on these, Havensight filed a writ of execution, falsely claiming a judgment of $678,500,000 had been entered against Nike. /d., Dkt. 52,53. The court struck the writ of execution. Jd, Dkt. 76, Nike then sought relief for Woodhouse’s ethical violations. /d., Dkt. 60. The district court granted such relief, prohibiting Woodhouse from: (1) contacting Nike directly with respect to pending legal matters in which it was represented by outside counsel; (2) making threats to obtain an advantage in pending civil disputes; and (3) making false or deceptive statements to the court. After this order issued, Havensight filed nine additional motions, applications, and requests for default judgment. Jd, Dkt. 74. On February 18, 2015, the district court dismissed Havensight’s Amended Complaint with prejudice. Nike IT, 2015 WL 993334, at "4-5, That same day, the court also sanctioned

Woodhouse under Federal Rule of Civil Procedure 11 for filing a false affidavit of an interview of purported retailer Mera. Nike IZ No. 14 Civ. 8985 (MLR), 2015 WL 993344, at *2-3 (C.D. Cal. Feb. 18, 2015).

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