Big Noise Sports, Inc. v. Beijing Media Network

Background

Big Noise Sports, Inc. sued Beijing Media Network and Beijing Universal Media Culture Communication Co., Ltd. The complaint alleged breach of contract and breach of the implied covenant of good faith and fair dealing. The parties entered a Personal Appearance Agreement in August 2018 concerning Big Noise Sports’s arrangement of professional boxer Mike Tyson’s appearance at a sports event to be televised on BTV in October 2018. The agreement required Beijing Universal Media Culture Communication Co., Ltd. to pay $300,000: a $100,000 deposit upon signing and another $200,000 later.

The defendants were served with the summons and complaint but never responded or appeared. The Clerk entered default, and Big Noise Sports moved for default judgment. A default judgment is a judgment entered when a defendant fails to defend the case. The court treated the motion as unopposed.

Liability

Under New York law, a breach-of-contract claim requires a contract, performance by the plaintiff, breach by the defendant, and damages. Accepting the complaint’s well-pleaded allegations as true, the court found that Big Noise Sports adequately alleged a valid agreement with clear payment terms and the defendants’ failure to comply. The court therefore found a valid basis for the breach-of-contract claim.

The agreement also required indemnification for liability, costs, expenses, and reasonable outside attorney’s fees resulting from a breach. Based on that provision, the court found that the defendants owed Big Noise Sports reasonable attorney’s fees, costs, and expenses.

Damages and fees

The court independently examined the amount of damages because allegations about damages are not automatically accepted as true following a default. It found that Big Noise Sports was entitled to $300,000 in actual damages—the amount it would have received if the contract had been performed.

The court also found reasonable the requested $16,687.50 in attorney’s fees and $628.78 in costs. The fees reflected 22.25 hours at $750 per hour, and the costs included filing, mailing, and service expenses.

Big Noise Sports separately requested $8,680.64 for attorney’s fees and costs that it said it would owe Tyson Affiliates under a separate agreement. Big Noise Sports acknowledged that Tyson Affiliates had only made a formal breach claim and had not started legal proceedings. Because no such proceedings had been filed, the court could not determine those additional damages with reasonable certainty and denied that part of the request.

Disposition

Judge Alison J. Nathan’s order states that the motion for default judgment was granted in part and denied in part. The court awarded Big Noise Sports $300,000 in actual damages, $16,687.50 in attorney’s fees, and $628.78 in costs, for a total of $317,361.28. The Clerk was directed to enter judgment against the defendants and close the case.