J & J Sports Productions, Inc. v. Mendez

Background

J & J Sports Productions, Inc. (J & J) alleged that it held exclusive nationwide commercial distribution rights for a World Boxing Council Middleweight Championship Fight. J & J stated that the program was electronically coded and that commercial establishments needed authorization, decoding equipment, and satellite coordinates to receive and publicly show it.

According to the complaint, Mendez Boxing Fifth Ave., Inc., doing business as “Mendez Boxing,” publicly exhibited the program without J & J’s authorization and without paying the required commercial fee. The establishment also sold beverages to patrons. J & J sued under 47 U.S.C. §§ 553 and 605, federal statutes concerning unauthorized interception and exhibition of communications.

Procedural History

J & J filed the action on May 1, 2019. After the defendants failed to answer or otherwise appear, the Clerk entered default against both defendants. J & J moved for default judgment, but the court later granted the defendants’ motion to set aside those defaults.

After a case-management order, J & J reported that Mendez Boxing had not complied with discovery demands and that J & J could not contact its counsel. Mendez Boxing and its counsel did not appear at a scheduled status conference. The court then ordered Mendez Boxing to explain why the case should not proceed to default judgment. Mendez Boxing did not respond, and default was entered against it again. J & J then renewed its motion for default judgment against Mendez Boxing only. The opinion notes that J & J had previously informed the court that Francisco Mendez had died, but this motion sought judgment only against Mendez Boxing.

Court’s Reasoning

A default occurs when a party fails to plead or otherwise defend. The court explained that default generally treats the well-pleaded factual allegations against the defaulting party as admitted, but the court must still determine whether those allegations establish legal responsibility.

The court concluded that J & J’s well-pleaded allegations established Mendez Boxing’s liability as a matter of law. Assuming the truth of those allegations, the court also concluded that the violation was willful and committed for commercial advantage or private financial gain. The court therefore found that J & J was entitled to statutory and enhanced damages under 47 U.S.C. § 605(e)(3)(C)(ii).

Disposition

The court GRANTED J & J’s motion for default judgment. It awarded J & J $6,600 in statutory damages and $19,800 in enhanced damages against Mendez Boxing. The Clerk was directed to close the motion, and J & J was directed to mail a copy of the order to Mendez Boxing.