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

Background

A jury had awarded Eventbrite $11 million, and the district court entered judgment in Eventbrite’s favor. M.R.G. appealed, challenging approximately $6.3 million of the damages tied to the agreement’s “True-Up Provision,” while not challenging approximately $4.7 million. The Ninth Circuit held that the True-Up Provision did not apply to M.R.G.’s breach, vacated the judgment as to damages, and instructed the district court to reduce the damages by $6,335,334.72 and related prejudgment interest. The appellate mandate issued on January 17, 2024.

The parties could not agree on a proposed amended judgment, so they submitted separate briefing about the judgment’s components.

Damages

The court awarded Eventbrite $4,664,665.28 in damages, consisting of:

- $3,000,000 for the sponsorship payment; - $1,568,842.28 in replenishing advances, also called the “Prior Balance”; and - $95,823 in customer refunds.

The court stated that this amount complied with the Ninth Circuit’s mandate and was not disputed.

Prejudgment interest

The court awarded $312,592 in prejudgment interest on the $1,568,842.28 Prior Balance through November 14, 2022, using the contract’s 9% simple annual interest rate.

For the remaining $3,095,823 in damages, the court awarded prejudgment interest at the contract’s 1% monthly rate, compounded monthly, from June 18, 2020, through November 14, 2022. The court declined Eventbrite’s request to extend that prejudgment-interest period through the new judgment date. It distinguished a Ninth Circuit decision involving a judgment that had been vacated and explained that, here, M.R.G. had obtained a reduction of the judgment on appeal.

Post-judgment interest

For the Prior Balance, the court awarded post-judgment interest at the contractual rate of 9% simple interest per year on $1,881,434.28. That principal included the $1,568,842.28 Prior Balance and the $312,592 in prejudgment interest through November 14, 2022.

For the remaining $3,095,823 in damages, the court awarded post-judgment interest at the federal statutory rate under 28 U.S.C. § 1961, beginning November 14, 2022. The court rejected Eventbrite’s request to apply the contract’s 1% monthly rate instead. It held that Rule 60(a), which permits correction of clerical mistakes or oversights in a judgment, did not apply, and that Eventbrite had waived the argument by previously requesting the statutory rate, not challenging the earlier order, and not raising the issue on appeal.

Attorneys’ fees, costs, and sanctions

The court awarded post-judgment interest at the statutory rate under § 1961 on Eventbrite’s previously awarded attorneys’ fees and costs, beginning November 14, 2022. The court declined to award fees and costs for Eventbrite’s efforts to enforce the judgment in a Canadian forum because the issue had not been fully briefed and the court lacked enough information to decide whether an award was appropriate. The court also declined to award Eventbrite fees and costs incurred on appeal because Eventbrite had not requested those fees from the Ninth Circuit and the Ninth Circuit had not transferred such a request to the district court. Finally, the court denied M.R.G.’s request for sanctions.

Required filing

The court ordered the parties to meet and confer and submit a joint “Final Amended Judgment (Second),” including the applicable interest calculations and conforming to the order, by April 15, 2024.