VIRGINIA EMERSON HOPKINS, District Judge.
The above-entitled civil action is before the Court on Plaintiff Joe Hand Promotions Inc.'s ("JHP") Motion for Default Judgment. (Doc. 24). JHP seeks a judgment by default against Defendants Eric Albright and Whiskey Creek Bar and Grill, LLC ("Whiskey Creek") with respect to all claims alleged in its complaint.
JHP filed the complaint in this action on November 23, 2016. (Doc. 1). JHP then filed its Amended Complaint on March 27, 2017. (Doc. 13). JHP "is a company that specializes in distributing and licensing premier sporting events to commercial locations such as bars." (Id. at 3). Here, JHP "held the exclusive commercial distribution rights to the broadcast of Ultimate Fighting Championship® 197: Jones v. Saint Preux telecast nationwide on April 23, 2016." (Id. at 1). In its Amended Complaint, JHP alleges that the Defendants violated the Communications Act of 1934 when they aired a showing of the UFC fight in the bar one evening. (Id. at 2-5).
The summons and Amended Complaint were served on Albright and Whiskey Creek on April 20, 2017. (Doc. 18); (Doc. 19). On May 18, 2017, after Defendants failed to appear, answer, or otherwise defend, JHP filed two Motions for Entry of Default. (Doc. 20); (Doc. 21). The Clerk filed the Entry of Default against both Defendants on May 22, 2017. (Doc. 22). JHP filed its Motion for Default Judgment on September 29, 2017. (Doc. 24).
As support for its Motion for Default Judgment, JHP has submitted the declaration of F. Page Gamble, the attorney of record for JHP. (Doc. 24-2). The affidavit establishes that "Defendants are not infants, incompetent persons, or persons in military service or otherwise exempted from default judgment under the Service Members Civil Relief Act of 2003." (Id. at 1).
Federal Rule of Civil Procedure 55 provides in pertinent part:
FED.R.CIV.P. 55.
Because default has been entered against the Defendants, the allegations of JHP's Amended Complaint are taken as true. See 10A CHARLES ALAN WRIGHT, ARTHUR R. MILLER & MARY KAY KANE, FEDERAL PRACTICE AND PROCEDURE § 2688 (3d ed. 1998) ("If the court determines that defendant is in default, the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.").
The Court's analysis of JHP's Motion for Default Judgment involves a two-step process. First, the Court must satisfy itself that it has jurisdiction over the parties and the subject matter of the lawsuit. See Taylor v. Appleton, 30 F.3d 1365, 1367 (11th Cir. 1994) (holding that district courts "always have an obligation to examine sua sponte their jurisdiction before reaching the merits of any claim"). Second, the Court must ensure that JHP has satisfied the elements of Rule 55 and is entitled to the default judgment it seeks. See Nishimatsu Constr. Co v. Houston Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)
It is an elementary requirement that personal jurisdiction must be established in every case before a court has power to render any judgment. Insurance Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702, 102 S.Ct. 2099, 2104 (1982). "For an individual, the paradigm forum for the exercise of general jurisdiction is the individual's domicile; for a corporation, it is an equivalent place, one in which the corporation is fairly regarded as at home." Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 924 (2011).
The record establishes that Whiskey Creek is at home in Alabama because it conducts business from its physical location in Alabama. (Doc. 13 at 1-2). Further, Albright resides in the State of Alabama. (Id. at 2). Accordingly, the Court finds that it has personal jurisdiction over these parties.
"The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States." 28 U.S.C. § 1331. This case arises under the Communications Act of 1934. (Doc. 13 at 2). For that reason, this Court has subject matter jurisdiction.
Federal Rule of Civil Procedure 55(b)(2) allows the Court to enter a default judgment when the Clerk has entered default and the party seeking judgment has applied to the court for a default judgment. To determine whether the moving party is actually entitled to a default judgment, the court must review the sufficiency of the complaint and its underlying merits. See Stegeman v. Georgia, 290 F. App'x 320, 323 (11th Cir. 2008) (citing Nishimatsu Const. Co. v. Houston Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). The law is well-settled that "a defaulted defendant is deemed to `admit[] the plaintiff's well-pleaded allegations of fact.'" Tyco Fire & Sec., LLC v. Alcocer, 218 F. App'x 860, 863 (11th Cir. 2007) (quoting Nishimatsu, 515 F.2d at 1206). However, the court has "an obligation to assure that there is a legitimate basis for any damage award it enters." Anheuser Busch, Inc. v. Philpot, 317 F.3d 1264, 1266 (11th Cir. 2007).
"To establish a violation of Section 605 or Section 553, Plaintiff must establish that (1) the Defendants intercepted the program, (2) Defendants did not pay for the right to receive the transmission, and (3) Defendants displayed the program to patrons of their commercial establishment." Zuffa, LLC v. Al-Shaikh, No. 10-00085-KD-C, 2011 WL 1539878, *4 (S.D. Ala. Apr. 21, 2011) (citing J & J Sports Prod., Inc. v. Just Fam, LLC, Slip Copy, 2010 WL 2640078, *2 (N.D.Ga. Jun. 28, 2010)). "To hold [a defendant] vicariously liable in his individual capacity and as an officer, director, shareholder and/or principal of [a restaurant] under 47 U.S.C. § 605, Plaintiff must show that [the defendant] had a `right and ability to supervise the violations, and that he had a strong financial interest in such activities.'" J&J Sports Productions, Inc. v. Arboleda, No. 6:09-cv-467-Orl-18DAB, 2009 WL 3490859, *5 (M.D. Fla. Oct. 27, 2009) (citing J&J Sports Productions, Inc. v. Ribeiro, 562 F.Supp.2d 498, 501 (S.D.N.Y. 2008)).
The Court finds that JHP has established that it is entitled to a default judgment against Defendants on this action on both Section 553 and 605.
The statute provides for damages:
47 U.S.C. § 605(e). JHP elected to pursue statutory, instead of actual, damages. (Doc. 24-1 at 6-8). Despite being able to ask for more, JHP asks for $5,000 under § 605(e)(3)(C)(i)(II) and $30,000 under § 605(e)(3)(C)(ii). (Id. at 12). This is in addition to the costs and attorneys' fees requested under § 605(e)(3)(B)(iii). (Id.).
The Court finds $3,150 is a reasonable damage award under § 605(e)(3)(C)(i)(II). District courts have determined this amount through varying methods:
Zuffa, LLC v. Al-Shaikh, No. 10-00085-KD-C, 2011 WL 1539878, *7 (S.D. Ala. Apr. 21, 2011) (utilizing "the number of patrons approach").
In this case, the Court elects to award damages based on the license fee JHP would have received if Defendants had acquired the signal legally.
"Under the statute, enhanced damages may be awarded when the violation was `committed willfully and for purposes of direct or indirect commercial advantage or private financial gain.'" Zuffa, 2011 WL 1539878, *8. "[Broadcasting an event] without . . . authorization is enough to show a willful violation committed for the purpose of direct or indirect financial gain." Joe Hand Promotions, Inc. v. McBroom, No. 5:09-cv-276(CAR), 2009 WL 5031580, *5 (M.D. Ga. Dec. 15, 2009).
McBroom, 2009 WL 5031580, *5.
Given that Defendants broadcast the Event
In its request for enhanced damages, JHP asks the Court "to assume this is was not an isolated violation."(See Doc. 24-1 at 6). However, JHP neither pled nor provided any proof of other violations. And, while the Defendants may have obtained a monetary gain from showing the Event (see id.), they did not collect a cover charge. (Doc. 24-7 at 2). And, without a reference point to know how many people were usually at Whiskey Creek on an evening when the Event was not shown, the Court will not speculate that the 81 patrons
Having considered all these matters, the Court finds it appropriate to award enhanced damages of three times the licensing fee. Accordingly, the Court awards $9,450 in damages under § 605(e)(3)(C)(ii).
Attorney F. Page Gamble's declaration states that "attorneys representing [JHP] in this action reasonably expended or will expend a minimum of six (6) hours on this litigation through the preparation of [JHP's] Motion for Default Judgment." (Doc. 24-2 at 2). Counsel for JHP also stated "[JHP] incurred costs of $400.00 to file and $192.00 to effectuate service in this action." (Id.). In its discretion and experience, the Court finds that six hours of attorney labor, at a rate of $250 per hour, is a reasonable amount given the complexity and procedural posture of the case. Accordingly, the Court awards JHP $1,500 in attorneys' fees and $592 in costs under 47 U.S.C. § 605(e)(3)(B)(iii).
By separate order:
1. The Motion for Default Judgment of Plaintiff JHP will be
2.
3. The Court awards damages to JHP in the following amounts: