DIRECTV, LLC v. Yuen
1:15-cv-07699
N.D. Ill.Jun 29, 2017Background
- Walter and Mandy Yuen own Great Wall of China restaurant and had a DirecTV account in Walter’s name that DirecTV records classified as "residential."
- The Yuens moved a DirecTV receiver to the restaurant; Walter testifies he asked DirecTV whether he could use the receiver at the restaurant and was told he could.
- On November 19, 2013, a DirecTV auditor asked Mandy to turn on a dining-room TV and change it to channel 212; the auditor photographed the DirecTV on-screen guide and filed a report.
- DirecTV sued under 47 U.S.C. § 605 (among other claims) and moved for summary judgment on liability under § 605.
- DirecTV produced a company printout showing the account was residential and an unsigned, unauthenticated Customer Agreement; Mader (DirecTV VP) stated the Yuens lacked the right to exhibit programming in a commercial establishment.
- The Yuens produced affidavits claiming an oral authorization from a DirecTV sales representative permitting use at the restaurant and denied having received or signed the Customer Agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Yuens were authorized to display DirecTV programming in the restaurant under § 605 | DirecTV: account was "residential," so no authorization to exhibit commercially; auditors’ photos show unauthorized exhibition | Yuens: sales rep told them they could use the receiver at the restaurant; reasonable to infer use could include when patrons present | Summary judgment denied — material dispute of fact on authorization |
| Whether an alleged oral authorization affects liability/willfulness | DirecTV: authorization relates to intent/willfulness but liability established by divulgence | Yuens: alleged oral authorization negates liability because use was authorized | Court: authorization can negate liability; factual dispute precludes summary judgment |
| Admissibility/authentication of DirecTV’s Customer Agreement and company records | DirecTV: printed account status and Customer Agreement support lack of authorization | Yuens: never received/agreed to the document; document unsigned/unlinked to account and therefore unauthenticated | Court: documents not authenticated/linked to Yuens; raises genuine factual dispute |
| Whether auditor-alone showing constitutes "divulgence" for § 605 | DirecTV: showing to auditor constitutes divulgence and supports liability | Yuens: even if divulgence occurred, authorization factual issue remains | Court: divulgence occurred, but authorization remains dispositive; summary judgment improper on that ground |
Key Cases Cited
- Ripberger v. Corizon, Inc., 773 F.3d 871 (7th Cir. 2014) (summary judgment facts and inferences drawn for nonmovant)
- Celotex Corp. v. Catrett, 477 U.S. 317 (U.S. 1986) (movant's burden on summary judgment)
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (U.S. 1986) (credibility determinations are for the factfinder at trial)
- J&J Sports Prods. v. Mandell Family Ventures, LLC, 751 F.3d 346 (5th Cir. 2014) (discussion that § 605 addresses unauthorized interception/receipt)
- Smith v. City of Chicago, 242 F.3d 737 (7th Cir. 2001) (summary judgment consideration limited to evidence admissible at trial)
- Giant Screen Sports v. Canadian Imperial Bank of Commerce, 553 F.3d 527 (7th Cir. 2009) (disputes about document authenticity create material fact issues)
