845 F. Supp. 2d 703
W.D.N.C.2012Background
- Plaintiff J&J Sports Productions, Inc. filed suit on Oct. 21, 2011 against Ana Ruth Romenski and Sacha, LLC d/b/a Las Aquilas.
- Romenski, as the registered agent for Sacha, was personally served on Nov. 19, 2011; Defendants failed to respond.
- Defendants did not answer or respond by Dec. 10, 2011 deadline; Plaintiff moved for entry of default on Jan. 6, 2012.
- Clerk entered default against Defendants on Jan. 9, 2012.
- Plaintiff alleges exclusive nationwide distribution rights to the Marquez–Diaz program (July 31, 2010) and that Defendants exhibited the program without authorization in a Charlotte commercial establishment, for direct/commercial gain, and engaged in conversion.
- Court must determine liability from well-pleaded facts after default and then assess damages under applicable statutes and rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether default judgment is appropriate | Liability established by admitted allegations due to default | (Not explicitly stated in text) | Default judgment may be entered where appropriate; court grants in part. |
| How damages should be calculated under 47 U.S.C. § 605 | Plaintiff seeks statutory damages (flat amount) rather than per-patron damages | Not explicitly stated in text | Flat statutory damages awarded; initial $1,200, with potential enhancement. |
| Whether recovery can be under both 553 and 605 or include conversion | Plaintiff seeks damages under both statutes and conversion | Not explicitly stated in text | Combination is not allowed; proceed under § 605 only; no double recovery and no additional conversion damages. |
| Extent of enhanced damages and attorney fees | Requests enhanced damages up to $100,000 and $1,012.50 in fees | Not explicitly stated in text | Enhanced damages trebled the $1,200 program fee to $3,600; fees awarded $1,012.50; costs to be awarded. |
Key Cases Cited
- Ryan v. Homecomings Fin. Network, 253 F.3d 778 (4th Cir.2001) (default admits well-pleaded facts but not legal conclusions)
- Weft, Inc. v. GC Inv. Assocs., 630 F.Supp. 1138 (E.D.N.C.1986) (allegations admitted under Rule 8(b)(6) absent denial)
- DIRECTV, Inc. v. Pernites, 200 Fed.Appx. 257 (4th Cir.2006) (defendant not held to admit facts not well-pleaded or conclusions of law)
- Nishimatsu Constr. Co. v. Houston Nat’l Bank, 515 F.2d 1200 (5th Cir.1975) (liability not established by default for unpleaded facts; need proof on liability)
- Arista Records, LLC v. Gaines, 635 F.Supp.2d 414 (E.D.N.C.2009) (confirms that liability is not automatically established by default)