Eventbrite, Inc. v. M.R.G. Concerts Ltd.

Background

Eventbrite, Inc. and M.R.G. Concerts Ltd. entered into agreements under which Eventbrite provided sponsorship payments and interest-free advances that MRG could use to promote its events. The parties’ later contract required MRG to return sponsorship payments and outstanding advances, and to make a payment calculated under a “True-Up” formula, if MRG ended the contract early. Matthew Gibbons was the only other defendant and owned MRG.

The parties’ relationship broke down after the COVID-19 pandemic affected the live-events industry. MRG argued that Eventbrite breached the contract by suspending or denying advances and by failing to timely decide one of MRG’s advance requests. Eventbrite argued that MRG had experienced a contractually defined “material adverse change” in its business and operations. Eventbrite sued for breach of contract and other claims, and MRG filed a counterclaim alleging breach of contract.

After a week-long trial, the jury found that MRG breached the contract, that Eventbrite did not breach the contract, and that Eventbrite was entitled to $11 million in damages.

MRG’s Motion for Judgment as a Matter of Law

A renewed motion for judgment as a matter of law asks the court to overturn a jury verdict when the evidence permits only one reasonable conclusion and that conclusion conflicts with the verdict. The court must view the evidence favorably to the party that won before the jury and may not reweigh the evidence or substitute its view of witness credibility for the jury’s.

MRG argued that the jury should have found Eventbrite liable for anticipatory breach, meaning a clear advance indication that a party will not perform its contractual duties. MRG relied on testimony that an Eventbrite employee said the company was suspending all advances. The court noted that “replenishing advances” were not specifically mentioned and that MRG continued requesting such advances, which could support a finding that MRG did not understand the contract to have been repudiated.

MRG also argued that Eventbrite breached the contract by denying its March 23, 2020 request for an advance. The court explained that the jury could reasonably find the request did not comply with the contract because it lacked required offer sheets.

As to MRG’s March 30, 2020 request, MRG argued that Eventbrite failed to fund the request or communicate a decision within the required time. The court held that resolving the conflicting testimony about when Eventbrite decided to deny the request was the jury’s role. The court concluded that substantial evidence supported the verdict.

MRG separately argued that the damages should be reduced because the True-Up provision was an unenforceable penalty or produced speculative damages. The court rejected those arguments. It noted that the verdict form required the jury to provide one lump-sum damages figure, so the court could not determine exactly how the jury calculated or allocated the award. The court also concluded that MRG relied on contract language concerning sponsorship-payment damages rather than the True-Up provision itself.

The court therefore DENIED MRG’s motion for judgment as a matter of law in full.

Eventbrite’s Motion for Fees, Costs, and Interest

The contract provided that the prevailing party in a dispute would receive reasonable attorney fees and costs. The court found that Eventbrite prevailed in the contract dispute and satisfied the requirements for a fee award.

The court rejected MRG’s request to reduce the attorney-fee award for block billing and allegedly excessive staffing. It found that the billing entries were sufficiently detailed to evaluate and that the matter was staffed with two partners and one attorney of counsel.

The court GRANTED Eventbrite’s request for attorney fees in full, awarding $900,930. It also GRANTED Eventbrite’s request for litigation costs in full, awarding $114,051.69.

The court awarded $312,592 in pre-judgment interest on the $1,568,842 prior balance owed by MRG. It also awarded $2,543,910 in pre-judgment interest on the remaining damages, calculated as the $11 million jury award minus the $1,568,842 prior balance. The court applied a contractual rate of 1% per month to the remaining damages.

The court ordered post-judgment interest to begin accruing on June 10, 2022, the date judgment was entered. For the $1,568,842 prior balance, the conclusion states that post-judgment interest would accrue at a contractual rate of 9% annually. For the remaining jury-award balance, it ordered post-judgment interest at the statutory rate under 28 U.S.C. § 1961.

Disposition

Judge Susan Illston denied MRG’s renewed motion for judgment as a matter of law in full. She granted Eventbrite’s motion for fees as specified in the order, including attorney fees, costs, pre-judgment interest, and post-judgment interest.