MEMORANDUM OPINION AND ORDER
Before the Court is a Motion for Final Default Judgment (Doc. 8), filed by Plaintiff J & J Sports Productions, Inc. on April 3, 2015. Plaintiff seeks a default judgment on its claims against Defendants Morelia Mexican Restaurant Inc., Santos Lozano, and Braulio Lozano.
I.
BACKGROUND
This case involves claims under the Federal Communications Act of 1934, as
Plaintiff filed the present case on September 17, 2014, asserting that Defendants willfully violated the FCA for commercial gain. Id. at 11, 13-17. Plaintiff thus maintains that it is entitled to an award of statutory and additional damages pursuant to the FCA, a permanent injunction enjoining Defendants from intercepting or exhibiting future programs without a license to do so, as well as court costs, attorney’s fees, and • pre- and post-judgment interest. Id. at 5-6.
Defendants were served with process on October 8, 2014, but did not answer or otherwise respond by the appropriate deadline. Doc. 5, Affidavit of Service. On March 27, 2015, the Court noted that no activity had occurred in the case since its filing, and accordingly informed Plaintiff that, unless it moved for default judgment, the case would be dismissed. Doc. 6, Order. Pursuant to the Court’s order, Plaintiff requested an entry of default as to Defendants on April 3, 2015, which the Clerk of Court entered the same day. Doc. 7, Request for Clerk to Issue Entry of Default; Doc. 9, Entry of Default. Also on April 3, 2015, Plaintiff filed the present Motion for Final Default Judgment (Doc. 8) against Defendants. To date, Defendants have not made an appearance in this case.
II.
LEGAL STANDARD
Under Rule 55 of the Federal Rules of Civil Procedure, federal courts have the authority to enter a default judgment against a defendant who has failed to plead or otherwise defend upon motion of the plaintiff. Fed.R.Civ.P. 55(a)-(b). That being said, “[d]efault judgments are a drastic remedy, not favored by the Federal Rules and resorted to by courts only in extreme situations.” Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n,
In determining whether a default judgment should be entered against a defendant, courts have developed a three-part analysis. See, e.g., 1998 Freightliner
[1] whether material issues of fact exist; [2] whether there has been substantial prejudice; [3] whether the grounds for default are clearly established; [4] whether the default was caused by a good faith mistake or excusable neglect; [5] the harshness of a default judgment; and [6] whether the court would think itself obliged to set aside the default on the defendant’s motion.
Id.
Second, courts assess the substantive merits of the plaintiffs claims and determine whether there is a sufficient basis in the pleadings for the judgment. See Nishimatsu Constr. Co., Ltd. v. Hous. Nat’l Bank,
Third, courts determine what form of relief, if any, the plaintiff should receive. See, e.g., 1998 Freightliner Vin #; 1FUYCZYB3WP 888986,
III.
ANALYSIS
A. Whether the Entry of Default Judgment Is Appropriate
After reviewing Plaintiffs Motion in light of the six Lindsey factors, the Court determines that default judgment is procedurally warranted. First, Defendants have not filed any responsive pleadings. Consequently, there are no material facts in dispute. Lindsey,
B. Whether There Is a Sufficient Basis for Judgment in the Pleadings
In light of the entry of default, Defendants are deemed to have admitted the allegations set forth in Plaintiffs Complaint. Nonetheless, the Court must review the pleadings to determine whether they present a sufficient basis for Plaintiffs claim for relief. Nishimatsu Constr.,
Rule 8(a)(2) requires a pleading to contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” The purpose of this requirement is “to ‘give the defendant fair notice of what the ... claim is and the grounds upon which it rests.’ ” Bell Atl. Corp. v. Twombly,550 U.S. 544 , 555,127 S.Ct. 1955 ,167 L.Ed.2d 929 (2007) (quoting Conley v. Gibson,355 U.S. 41 , 47,78 S.Ct. 99 ,2 L.Ed.2d 80 (1957)). The factual allegations in the complaint need only “be enough to raise a right to relief above the speculative level, on the assumption that all the allegations in the complaint are true (even if doubtful in fact).” Id. (footnote and citations omitted). “[Detailed factual allegations” are not required, but the pleading must present “more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal,556 U.S. 662 , 678,129 S.Ct. 1937 ,173 L.Ed.2d 868 (2009).
Wooten v. McDonald Transit Assocs., Inc.,
Plaintiff alleges that Defendants “willfully intercepted and/or received the interstate communication of the Event,” or, alternatively, “assisted in the receipt of the interstate communication of the Event.” Compl. ¶ 13. Plaintiff then avers that Defendants “transmitted, divulged and published [the Event] ... to patrons within [Defendants’ establishment].” Id. Moreover, Defendants allegedly “infringed upon Plaintiffs exclusive rights” to broadcast the Event “willfully and with the express purpose and intent to secure a commercial advantage and private financial gain.” Id. at ¶ 14. Plaintiff insists that through these acts, Defendants violated 47 U.S.C. §§ 553 and 605. Id. at ¶¶ 18-19.
A person violates 47 U.S.C. § 605 when he “intercepts any radio communication ... or receive[s] or assists] in receiving any interstate or foreign communication by radio and use[s] such communication ... for his own benefit or for the benefit of another not entitled thereto.” 47 U.S.C. § 605(a). Similarly, one violates 47 U.S.C. § 553 by “intercepting] and receiving] or assisting] in intercepting or receiving any communications service offered over a cable system” without authorization. Id. § 553(a)(1). The unauthorized interception of satellite or cable transmissions violates both Sections 553 and 605. Entm’t by J & J, Inc. v. Al-Waha Enters.,
“A defendant’s default concedes the truth of the allegations of the Complaint concerning the defendant’s liability, but not damages.” Ins. Co. of the W.,
A party aggrieved by a violation of Section 605 may elect to receive either actual damages or statutory damages. ' 47 U.S.C. § 605(e)(3)(C)(i). Statutory damages for each violation of the section must be awarded in an amount no less than $1,000 and no more than $10,000, as the Court finds just. Id. § 605(e)(3)(C)(i)(II). If the Court finds that a violation was committed “willfully and for purposes of direct or indirect commercial advantage or private financial gain,” it may, in its discretion, increase the damage awarded by an amount of not more than $100,000. Id. § 605(e)(3)(C)(ii). An aggrieved party who prevails shall receive full costs, including reasonable attorney’s fees. Id. § 605(e)(3)(B)(iii).
1. Statutory Damages
Plaintiff maintains that “it would be impossible to determine the full extent of the profits” it lost and “the additional damages sustained ... as a result of Defendants’ unlawful actions.” Doc. 8, Pl.’s Mot. for Final Default J. (Pl.’s Mot.) 5. Thus, Plaintiff requests statutory rather than actual damages, seeking an award of $10,000 — the statutory maximum — against Defendants.
Courts have assessed various amounts in statutory damages for violations similar to those presented here. See e.g., Joe Hand Promotions, Inc. v. Alima, No. 3:13-CV-0889-B,
2. Additional Damages
Plaintiff further requests $50,000 in additional damages pursuant to 47 U.S.C. § 605(e)(3)(C)(ii) based on its allegation that Defendants’ actions “were willful and ‘for purposes of direct or indirect commercial advantage or private financial gain.’” Pl.’s Mot. 6, 9. Plaintiff does not present evidence to demonstrate that Defendants willfully violated the FCA, but it insists that Defendants could not have “innocently” accessed the broadcast of the Event given the complexity of intercepting transmissions. Id. at 7. Courts have generally found this reasoning to be persuasive given the limited means by which defendants can access closed-circuit, pay-per-view events and the unlikelihood that an establishment could intercept such broadcasts by chance. See Al-Waha Enters.,
Moreover, the record indicates that Defendants exhibited the Event for purposes of direct or indirect commercial gain. As Plaintiff alleges, and as demonstrated by evidence of the auditing visit during which the violation was observed, Defendants advertised the showing of the Event; charged a $10 cover to view the Event; broadcasted the Event on five televisions, one of which was a large-screen television; and sold food and beverages to the sixty patrons that were present at the establishment. Pl.’s Mot. 8-9; Pl.’s Ex A-2, Affidavit, App. 19-22. Courts have found such facts persuasive in establishing a commercial motive. See J & J Sports Prods., Inc. v. Garcia, No. H-08-1675,
The FCA allows “the court, in its discretion,” to “increase the award of damages, whether actual or statutory, by an amount of not more than $100,000” for willful violations. 47 U.S.C. § 605(e)(3)(C)(ii). However, courts have varied in their approaches to determining the proper amount to award in cases similar to the present one. See, e.g., Alima,
3. Attorney’s Fees and Costs
Under the FCA, the Court is required to order the recovery of full costs, including attorney’s fees, to an aggrieved party who prevails. 47 U.S.C. § 605(e)(3)(B)(iii). Plaintiff seeks a one-third contingent fee or, alternatively, attorney’s fees in the amount of $1,000. PL’s Mot. 10; PL’s Ex. B, Affidavit of David M. Diaz (Diaz Aff.), App. 27-30. Plaintiff presents the affidavit of its counsel, David M. Diaz, in which he estimates his fee to be $1,000 for his time and work on this case. PL’s Ex. B, Diaz Aff., App. 29-30. This sum is based on a rate of $250 per hour and approximately four hours of work. Id. Given this estimate, as well as
The Fifth Circuit has described the procedure and standard for determining attorney’s fees as follows:
The determination of a fees award is a two-step process. First the court calculates the “lodestar” which is equal to the number of hours reasonably expended multiplied by the prevailing hourly rate in the community for similar work. The court should exclude all time that is excessive, duplicative, or inadequately documented. Once the lodestar amount is calculated, the court can adjust it based on the twelve factors set forth in Johnson v. Georgia Highway Express, Inc.,
Smith v. Acevedo,
Although Plaintiff has not offered invoices or other evidence supporting the number of hours its attorney worked on this case, the Court accepts as reasonable Mr. Diaz’s estimate of his time and rates given his experience with anti-piracy cases as well as the authorities he provides. PL’s Exs. B, Diaz Aff., App. 26-28; B-2, Texas Lawyer’s Annual Salary & Billing Report, App. 39-46. Accordingly, the Court makes no adjustment to these fig-. ures and GRANTS Plaintiff’s request for $1,000 in attorney’s fees.
With respect to costs, which Plaintiff is entitled to recover pursuant to this action, the Court observes that Plaintiff has neglected to specify the amount of costs it seeks to recover. Moreover, Plaintiff does not provide any evidence establishing the costs it has incurred. As the Court is unable to determine the sum of the costs sought or the manner in which such a sum can be computed, it DENIES Plaintiff’s request for costs at this time. Plaintiff may, however, provide supplementary briefing and evidence establishing the amount of costs it seeks.
A Permanent Injunction
Lastly, Plaintiff requests a permanent injunction against Defendants to prevent them “from ever intercepting or exhibiting an unauthorized program in violation of the [FCA].” Pl.’s Mot. 10. Under the FCA, a court may grant a final injunction “on such terms as it may deem reasonable to prevent or restrain violations” of the
IV.
CONCLUSION
For these reasons, the Court GRANTS in part and DENIES in part Plaintiffs Motion for Final Default Judgment (Doc. 8). In particular, the Court:
• GRANTS Plaintiffs requests for statutory damages in the amount of $5,000 and for additional damages in the amount of $20,000, for a total award of $25,000;
• GRANTS Plaintiffs request for attorney’s fees in the amount of $1,000;
• DENIES Plaintiffs request for costs of court, pending supplementation of the record;
• GRANTS Plaintiffs request for post-judgment interest at the rate of 0.39% on all amounts awarded herein; and
• DENIES Plaintiffs request for a permanent injunction.
If Plaintiff is able to provide supplementary briefing and evidence in support of its request for court costs, it is ORDERED to do so by September 25, 2015.
SO ORDERED.
Notes
. Specifically, Defendants are identified as follows: Morelia Mexican Restaurant, Inc., individually and d/b/a Morelia, d/b/a Morelia Mexican Restaurant, d/b/a Morelia Mexican Restaurant & Club; Santos Lozano, individually and d/b/a Morelia, d/b/a Morelia Mexican Restaurant, d/b/a Morelia Mexican Restaurant & Club; and Braulio Lozano, individually and d/b/a Morelia, d/b/a Morelia Mexican Restaurant, d/b/a Morelia Mexican Restaurant ,& Club.
. The Court notes that Plaintiff cannot recover under both Sections 553 and 605, even if it can be demonstrated that Defendants violated both. Al-Waha Enters.,
. In its proposed order, Plaintiff also includes several conditional grants of attorney’s fees for potential post-judgment and appellate work. Doc. 8-2, Proposed Order 2. Although Plaintiff does not expound upon this request in its Motion, the affidavit of its counsel, David Diaz, lists various requests for fees that are contingent upon the occurrence of post-judgment events. See Pl’s Ex. B, Diaz. Aff., App. 31-32. For example, Plaintiff seeks a conditional award of $10,000 to be granted should Defendants file a "post-judgment, pre-appeal motion,” such as a motion to vacate. Id. Because this Court has granted reasonable attorney's fees for the work actually performed, and because Plaintiff has presented no argument or evidence establishing the reasonableness of these additional contingent fees, the Court denies this request.
