Stingray Music USA, Inc. v. uCast LLC
- Alvin Hellerstein
- 1:19-cv-07473
- U.S. District Court · Southern District of New York
- 4
In Stingray Music USA v. uCast, Judge Hellerstein granted Stingray’s motion to strike and awarded default judgment after repeated discovery violations.
Stingray Music USA, Inc. obtained an order granting its motion to strike and providing for default judgment against uCAST LLC f/k/a QELLO, LLC. uCAST was also ordered to pay an additional $50,000 sanction and could contest Stingray’s damages evidence.
What happened
In Stingray Music USA, Inc. v. uCAST LLC f/k/a QELLO, LLC, the defendant repeatedly failed to follow discovery orders and did not pay earlier sanctions. The court had ordered the defendant to identify a witness and warned that the plaintiff’s factual assertions could be treated as proven.
The defendant’s lawyer withdrew after reporting that the defendant’s officers would not communicate or help with the case. The court gave the company 30 days to obtain new counsel, but it remained without a lawyer and continued not to comply with court orders. Stingray asked the court to strike the defendant’s pleadings.
Judge Hellerstein granted Stingray’s motion and ruled that default judgment would be entered against uCAST. He also imposed an additional $50,000 sanction. Stingray was ordered to submit a proposed judgment and evidence supporting its damages, while uCAST was given ten days to oppose that evidence.
The detailed version
- Stingray Music USA, Inc. v. uCast LLC · No. 1:19-cv-07473
- Alvin Hellerstein
- Aug. 11, 2020
Background
Over several months, the court sanctioned uCAST three times for failing to comply with discovery obligations and court directives. The sanctions included three $5,000 monetary penalties. The court also ordered procedures for identifying a Federal Rule of Civil Procedure 30(b)(6) witness and warned that factual assertions made by Stingray would be deemed proven unless controverted by documentary evidence.
uCAST’s counsel moved to withdraw, stating that the company’s officers refused to respond to communications or assist with the litigation. Judge Hellerstein granted the withdrawal motion and reminded uCAST that, as a corporation, it could not represent itself and had to obtain new counsel. The court gave uCAST 30 days to do so. uCAST remained without counsel and continued failing to comply with discovery orders, pay the earlier sanctions, or provide information needed to coordinate discovery.
Motion and ruling
Stingray moved for a fourth round of sanctions and asked the court to strike uCAST’s pleadings. Judge Hellerstein granted the motion to strike and concluded that Stingray was entitled to default judgment. He relied on Federal Rule of Civil Procedure 37(b)(2)(A)(vi), which permits default judgment as a sanction for failing to comply with discovery orders. The court found that uCAST had received repeated opportunities to comply and that monetary sanctions and findings in Stingray’s favor had not worked.
The order states that default judgment would be entered against uCAST. Stingray had to submit a proposed judgment within 15 business days, including affidavits and admissible evidence supporting the damages sought. uCAST was allowed ten days after that submission to oppose Stingray’s evidence. The court also imposed an additional $50,000 monetary sanction, finding that uCAST had not shown a colorable defense and had multiplied the proceedings and burdened the court.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.