G&G Closed Circuit Events, LLC v. Batista

Background

G&G Closed Circuit Events, LLC sued Delvis Batista, individually and doing business as Bar 180, and Hudson Heights Bar & Grill Corporation, described as doing business as Bar 180. G&G alleged that the defendants intercepted and displayed to patrons a satellite broadcast of a September 16, 2017 pay-per-view boxing match without authorization, violating Section 605 of the Communications Act of 1934. G&G also alleged that the defendants could have lawfully purchased the broadcast license for $2,500.

G&G served both defendants. After they failed to answer, the Clerk of Court entered certificates of default. G&G then moved for default judgment under Federal Rule of Civil Procedure 55(b)(2), requesting $30,000 in damages, pre- and post-judgment interest, costs, and attorney’s fees.

Liability and damages

A default judgment is a judgment entered when a properly served defendant does not defend the case. Because the defendants defaulted, the court accepted G&G’s factual allegations as true, except allegations concerning the amount of damages.

The court held that the alleged interception and exhibition of the satellite broadcast violated Section 605(a). It also found that G&G alleged sufficient facts to establish willfulness. The court reasoned that the broadcast was scrambled and that the defendants had to use electronic decoding equipment to display it clearly on three television screens.

Section 605 permits statutory damages of $1,000 to $10,000 for a violation and enhanced damages of up to $100,000 for a willful violation committed for commercial advantage or financial gain. The court found G&G’s requested $30,000 excessive in light of the alleged $2,500 licensing fee and the absence of an allegation that these defendants were repeat offenders. It awarded $10,000—described as the licensing fee plus three times that amount in enhanced damages—to compensate G&G, approximate the value of the rights involved, and deter future violations.

The court declined to award pre-judgment interest because the damages included a punitive element. It stated that G&G was entitled to post-judgment interest at the federal statutory rate under 28 U.S.C. § 1961(a), beginning when judgment was entered.

Costs and attorney’s fees

G&G requested $1,137.20 in costs and expenses: $495 for investigative services, $242.20 for service of process, and $400 in filing fees. The court ruled that investigative-service costs were not recoverable under the general federal costs statutes. It allowed $130 for private process-server costs, estimating that service would not reasonably have taken more than two hours at the applicable United States Marshals Service rate, and allowed the full $400 filing fee.

The court also approved G&G’s request for $1,610 in attorney’s fees. That amount covered 2.6 hours of attorney time billed at $350 per hour and 7 hours of paralegal time billed at $100 per hour. The total award for costs and attorney’s fees was therefore $2,140.

Ruling

Judge Naomi Reice Buchwald granted G&G’s motion for default judgment. She awarded $10,000 in damages, post-judgment interest calculated from the date judgment was entered, and $2,140 in costs and attorney’s fees. The court directed the Clerk of Court to enter final judgment for G&G and terminate the pending motions.