G&G Closed Circuit Events, LLC v. Sanchez Torres

Background

G&G Closed Circuit Events, LLC alleged that it held the exclusive nationwide commercial distribution rights for a May 6, 2017 boxing program. The complaint alleged that Mi Lugar Restaurant Corp., doing business as Mi Lugar Restaurant, El Rey del Taco, and La Esquinita, and Manuel Sanchez Torres showed the program on two screens to about 25 patrons at the restaurant without authorization.

The complaint alleged that Sanchez Torres was the owner and principal of Mi Lugar Restaurant Corp., could supervise the restaurant’s activities, directed employees to intercept and show the program, and had a financial interest in the showing. The defendants allegedly did not pay the $2,200 commercial sublicense fee required for an establishment of the restaurant’s size.

Procedural History

The plaintiff filed the action on May 5, 2020. Mi Lugar Restaurant Corp. was served through its authorized agent at the office of the New York Secretary of State, and Sanchez Torres was served by a co-worker at the restaurant. The Clerk entered defaults against both defendants. The defendants were later served with the plaintiff’s motion for default judgment and the court’s order addressing the motion, but they did not respond or otherwise appear.

Liability

The court explained that a default judgment may be entered when the complaint’s factual allegations, taken as true, establish liability as a matter of law. It concluded that the allegations established liability under both Section 605 of the Communications Act of 1934 and Section 553 of the Cable and Television Consumer Protection and Competition Act of 1992.

The court held that both statutes prohibit the unauthorized reception of the cable and satellite programming alleged in the complaint. Because the program was transmitted through both cable and satellite, the court concluded that both statutes applied.

Damages

The plaintiff requested $6,600 in statutory damages and $19,800 in enhanced statutory damages under Section 605. The court stated that a default admits well-pleaded allegations of liability but does not admit the amount of damages; damages must have an evidentiary basis.

Because the plaintiff did not provide evidence of what individual viewers would have paid to watch the event at home, the court used the $2,200 commercial license fee as the base statutory-damages award. It awarded $2,200 in statutory damages.

The court also found that enhanced damages were appropriate because the violation was willful and intended to provide a direct or indirect commercial advantage. The court relied on allegations and affidavits indicating that the restaurant hosted and profited from the unlicensed showing and that the signal required decoding equipment to be received clearly. It awarded $8,800 in enhanced damages.

Disposition

Judge Ronnie Abrams granted the plaintiff’s motion for default judgment. The court awarded $10,800 in statutory damages, consisting of $2,200 in statutory damages and $8,800 in enhanced damages, and made the defendants jointly and severally liable for that amount. The court granted the plaintiff 30 days from entry of judgment to submit a motion for costs and attorney fees. It directed the Clerk to enter judgment and close the case, and stated that all motions were terminated.