Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_13-cv-02494/USCOURTS-azd-2_13-cv-02494-0/pdf.json

Nature of Suit Code: 490
Nature of Suit: Cable/ Satellite TV
Cause of Action: 47:0605 Communications Act of 1934

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WO 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA

 

 Before the Court is Plaintiff’s Status Report (Doc. 41), in which he requests until 

August 8, 2014 to refile an Application for Default Judgment. The Court will deny 

Plaintiff’s request and will direct the Clerk of Court to vacate the entry of default. 

I. Background 

 On December 6, 2013, Plaintiff filed a Complaint (Doc. 1) against “Brad Ira Berko 

and John Schottenstein, individually and d/b/a Scottsdale Cigar Club; and Scottsdale 

Cigar Club, LLC, an unknown business entity d/b/a Scottsdale Cigar Club,” commencing 

the instant action. Plaintiff brings claims under 47 U.S.C. §§ 553 (unauthorized reception 

of cable service) and 605 (unauthorized publication or use of communications), stemming 

from Defendants’ alleged unlicensed broadcasting of Manny Pacquiao v. Juan Manuel 

Marquez, IV Welterweight Fight Program, televised on December 8, 2012. 

 On April 10, 2014, the Clerk of Court entered default against Defendant Berko 

and Defendant Scottsdale Cigar Club (Doc. 18). Defendant Berko, appearing pro se, filed 

an answer on May 15, 2014 (Doc. 25). Plaintiff filed an Application for Default 

J & J Sports Productions Incorporated, 

 

Plaintiff, 

vs. 

Brad Ira Berko, et al., 

Defendants. 

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No. CV-13-02494-PHX-SPL

ORDER 

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Judgment against Defendants Berko and Scottsdale Cigar Club, LLC, which the Court’s 

denied on June 6, 2014. (Doc. 30.) This action was reassigned to this Court on July 1, 

2014. (Doc. 37.) 

II. Entry of Default 

 Rule 55(c) of the Federal Rules of Civil Procedure gives courts authority to set 

aside an entry of default for good cause. Courts must consider three factors to determine 

whether good cause exists: (1) whether the default was the consequence of the defaulting 

party’s culpable conduct, (2) whether the defaulting party had a meritorious defense, and 

(3) whether setting aside the default would prejudice the other party. United States v. 

Signed Personal Check No. 730 of Yurban S. Mesle, 615 F.3d 1085, 1091 (9th Cir. 2010). 

Default is a “drastic step appropriate only in extreme circumstances” and that courts 

should decide cases on their merits “whenever possible.” Id.

 The Court will deny Plaintiff’s request for additional time to seek default 

judgment and will instead set aside the entry of default. First, pro se Defendant’s 

untimely answer does not rise to the level of “culpable conduct” considering the 

circumstances. Second, the Court agrees with Judge Bolton’s concerns that Defendant 

Berko’s answer raises significant concerns on the issue of liability. (See Doc. 30.) 

Defendant’s proffered defense that, among other things, the Scottsdale Cigar Club, LLC 

did not broadcast the fight because it was closed at the time it was televised, if true, is 

meritorious. Third, there is no evidence that Plaintiff would be prejudiced by setting aside 

the default. Therefore, the Court finds good cause and will set aside the entry of default. 

 Additionally, in pro se Defendant Berko’s May 15, 2014 answer (Doc. 25), it is 

unclear whether he intended to answer solely on his own behalf, or on both his own 

behalf and on behalf of Defendant Scottsdale Cigar Club, LLC. Thus, although 

Defendant Scottsdale Cigar Club, LLC may not appear pro se and may only appear 

through counsel, see In re Am. West Airlines, 40 F.3d 1058, 1059 (9th Cir. 1994) 

(unincorporated entities may not appear pro se); United States v. High Country Broad. 

Co., 3 F.3d 1244, 1245 (9th Cir. 1993) (corporations may not appear pro se), the Court 

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finds that Defendant Berko should be afforded an opportunity to secure counsel and file 

an answer to the complaint on behalf of Defendant Scottsdale Cigar Club, LLC. 

III. Rule 16 Case Management Conference 

 Defendant Berko having filed an answer, and finding that the entry of default 

should be set aside, in a forthcoming order this Court will set a Rule 16 Case 

Management Conference. As to be addressed by the order, counsel who will be 

responsible for trial of the lawsuit for each party, and any party that is not represented by 

counsel, shall appear and participate in the Case Management Conference. 

Consequently, the Court preemptively advises that, in this particular case, it believes an 

in-person appearance by counsel is appropriate. The Court appreciates that litigation is 

often expensive and that telephonic appearances are often permitted. However, here, an 

in-person appearance will allow for better interaction between the Court and counsel and 

will allow the parties to discuss the case, and possibly settlement options. 

 Accordingly, 

IT IS ORDERED that the request for an extension of time to file an application 

for default judgment, as set forth in Plaintiff’s Status Report (Doc. 41), is denied. 

IT IS FURTHER ORDERED that the Clerk of Court shall vacate the default 

entered against Defendants Brad Ira Berko and Scottsdale Cigar Club, LLC (Doc. 18). 

 Dated this 28th day of July, 2014.

Honorable Steven P. Logan

United States District Judge

Case 2:13-cv-02494-SPL Document 42 Filed 07/28/14 Page 3 of 3