Zuffa, LLC v. Cuebas

CourtDistrict Court, M.D. Pennsylvania
DecidedJune 17, 2025
Docket3:24-cv-01269
StatusUnknown

This text of Zuffa, LLC v. Cuebas (Zuffa, LLC v. Cuebas) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zuffa, LLC v. Cuebas, (M.D. Pa. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF PENNSYLVANIA ZUFFA, LLC,

Plaintiff, CIVIL ACTION NO. 3:24-CV-01269

v. (MEHALCHICK, J.)

DERICK CUEBAS, et al.,

Defendants.

MEMORANDUM Pending before the Court is motion for default judgment of Plaintiff Zuffa, LLC doing business as Ultimate Fighting Championship, (“Plaintiff”), filed pursuant to Fed. R. Civ. P. 55 against Defendants Derick Cuebas (“Cuebas”) and 1 Cue Cigar Lounge, LLC (“Cue”) (together, “Defendants”). (Doc. 12). On July 29, 2024, Plaintiff initiated this action by filing a complaint against Defendants. (Doc. 1). On October 16, 2024, the Clerk of Court issued an entry of default against Defendants. (Doc. 8). On June 17, 2025, the Court conducted a hearing to determine Plaintiff’s damages. Defendants did not appear. For the following reasons, Plaintiff’s motion for default judgment is GRANTED. (Doc. 12). I. BACKGROUND AND PROCEDURAL HISTORY The following factual summary is taken from the complaint, and for the purposes of the instant motion, is taken as true. (Doc. 1). Plaintiff is a Nevada corporation which owns the broadcast rights to “UFC 285 Jones vs. Gane PPV Broadcast” (the “Broadcast”). (Doc. 1, ¶¶ 5-6). The Broadcast was an Ultimate Fighting Championship (“UFC”) fight which occurred on March 4, 2023. (Doc. 1, ¶ 6). Plaintiff owns the rights to the Broadcast including the rights to “all undercard matches and the entire television Broadcast, via encrypted closed[-]circuit television, encrypted satellite, radio signals and/or digital streaming technology.” (Doc. 1, ¶¶ 5-6). Under Plaintiff’s rights to the Broadcast, a commercial business cannot show the Broadcast without paying Plaintiff a commercial use fee. (Doc. 1, ¶ 21). Cue is a commercial business located in East Stroudsburg, Pennsylvania. (Doc. 1, ¶¶ 9, 12-13). Cuebas is the manager and operator of Cue. (Doc. 1, ¶¶ 9, 12-13). On March 3, 2023, Defendants posted a Facebook advertisement stating they would be playing the Broadcast at

Cue on March 4, 2023. (Doc. 1, ¶ 14). Defendants showed the Broadcast at Cue for a commercial benefit without paying Plaintiff the commercial use fee. (Doc. 1, ¶¶ 22-25). On July 29, 2024, Plaintiff initiated this action against Defendants alleging violations of the Communications Act of 1934 and other copyright laws of the United States. (Doc. 1). On September 3, 2024, Plaintiff filed affidavits of service showing personal service on Defendants. (Doc. 5; Doc. 6). On October 9, 2024, Plaintiff filed a request for entry of default against Defendants which the Clerk of Court entered on October 16, 2024. (Doc. 7; Doc. 8). On February 24, 2025, Plaintiff filed a motion for default judgment and filed a brief in support on February 25, 2025. (Doc. 12; Doc. 14). Plaintiff seeks an award of up to $51,665 in

damages against Defendants under a theory of joint and several liability. (Doc. 14, at 18-19). On June 17, 2025, the Court held a hearing on the motion for default judgment. Defendants did not appear. To date, no counsel has entered an appearance on Defendants’ behalf and Defendants have not filed any documents with the Court in connection with this case. II. LEGAL STANDARD Default judgments are governed by a two-step process set forth under Rule 55 of the Federal Rules of Civil Procedure. An entry of default by the Clerk of Court under Rule 55(a) is a prerequisite to a later entry of a default judgment under Rule 55(b). See 10A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2682 (3d ed. 2007) (noting that, “[p]rior to obtaining a default judgment under either Rule 55(b)(1) or Rule 55(b)(2), there must be an entry of default as provided by Rule 55(a)”). Once the Clerk of Court has entered a default, the party seeking the default may then move the Court to enter a default judgment

under Rule 55(b)(2). Entry of default does not entitle a claimant to default judgment as a matter of right. 10 James Wm. Moore et al., Moore's Federal Practice § 55.31 (Matthew Bender ed. 2010). Indeed, it is well settled that decisions relating to the entry of default judgments are committed to the sound discretion of the district court. See Emcasco Ins. Co. v. Sambrick, 834 F.2d 71, 74 (3d Cir. 1987). Three factors control the exercise of the district court's discretion in assessing whether default judgment should be granted following the entry of default: “(1) prejudice to the plaintiff if default is denied, (2) whether the defendant appears to have a litigable defense, and (3) whether defendant's delay is due to culpable conduct.” Chamberlain v. Giampapa, 210 F.3d

154, 164 (3d Cir. 2000) (citing United States v. $55,518.05 in U.S. Currency, 728 F.2d 192, 195 (3d Cir. 1984)). Even so, a court may “enter a default judgment based solely on the fact that the default occurred” without considering the Chamberlain factors if the defendant has been properly served but fails to appear, plead, or defend an action. See Anchorage Assocs. v. Virgin Islands Bd. of Tax Review, 922 F.2d 168, 177 n.9 (3d Cir. 1990). “A finding that default judgment is appropriate, however, is not the end of the inquiry.” Martin v. Nat'l Check Recovery Servs., LLC, No. 1:12-cv-01230, 2016 WL 3670849, at *1 (M.D. Pa. July 11, 2016). Prior to entering a default judgment, the Court must also determine whether the “unchallenged facts constitute a legitimate cause of action.” See Wright

et al., at § 2688; see also Broad. Music, Inc. v. Spring Mount Area Bavarian Resort, Ltd., 555 F. Supp. 2d 537, 541 (E.D. Pa. 2008) (stating that, “before granting a default judgment, the Court must ... ascertain whether ‘the unchallenged facts constitute a legitimate cause of action, since a party in default does not admit mere conclusions of law’” (citations omitted)). In conducting this inquiry, “the well-pleaded, factual allegations of the complaint ... are accepted as true and treated as though they were established by proof.” See E. Elec. Corp. of N.J. v. Shoemaker Const.

Co., 652 F. Supp. 2d 599, 605 (E.D. Pa. 2009) (citation omitted). While the Court must accept as true the well-pleaded factual allegations of the complaint, the Court need not accept the moving party's factual allegations or legal conclusions relating to the amount of damages. See Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990). III. DISCUSSION Plaintiff moves for default judgment and requests up to $51,665 in damages under a theory of joint and several liability. (Doc. 14, at 18-19). The Court will first address the Court’s jurisdiction over this matter. The Court will then access whether default judgment is warranted. Finally, the Court will assess damages.

A. THE COURT HAS JURISDICTION. Although Defendants have failed to make any appearance or challenge jurisdiction, “when a default judgment is requested, a court is required to make a threshold determination regarding any jurisdictional defects.” See Allaham v. Naddaf, 635 F. App'x 32, 36 (3d Cir. 2015) (nonprecedential).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Zuffa, LLC v. Cuebas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zuffa-llc-v-cuebas-pamd-2025.