Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_10-cv-02323/USCOURTS-casd-3_10-cv-02323-0/pdf.json

Nature of Suit Code: 490
Nature of Suit: Cable/ Satellite TV
Cause of Action: 28:1331 Fed. Question

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Plaintiff voluntarily dismissed Defendant Diega Sanchez on August 30, 2011. 1

- 1 - 10cv2323

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

J & J SPORTS PRODUCTIONS, INC.,

Plaintiff,

CASE NO. 10cv2323 BEN (NLS)

ORDER GRANTING DEFAULT

JUDGMENT

[Dkt. No. 11]

vs.

DIEGA SANCHEZ, et. al.,

Defendants.

INTRODUCTION

Plaintiff J & J Sports Productions, Inc. moves for default judgment against Defendants Mark

Anthony Sanchez and Raul Sanchez, Jr., individually and d/b/a Tacos & Beer Sports Bar. (Dkt. No. 1

11.) Plaintiff brought this action against Defendants for the unlawful exhibition of the Manny

Pacquiao v. Miguel Cotto fight and associated under-card (“Program”) at Tacos & Beer on

November 14, 2009. (Compl. ¶ 14.) For the reasons set forth below, the Court GRANTS Plaintiff’s

motion for default judgment. 

BACKGROUND

Plaintiff is a distributor of sports and entertainment programming that purchased the

commercial rights to broadcast the Program. (Compl. ¶ 11.) Plaintiff entered into agreements with

sub-licensees to broadcast the Program for a license fee. (Compl. ¶ 12.) Defendants were not

authorized to broadcast the Program, but an investigator observed and later documented in a sworn

affidavit the unlawful exhibition of the Program at Tacos & Beer on November 14, 2009. (Aff.. of

Case 3:10-cv-02323-BEN-NLS Document 16 Filed 10/24/11 Page 1 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 2 - 10cv2323

Frank Britton in Support of Plaintiff’s Application for Default Judgment (“Britton Aff.”).) The

investigator documented seven televisions broadcasting the Program and capacity for approximately

150 patrons with 120-140 patrons present. (Id.) No cover charge was being imposed for admission.

(Id.) 

Plaintiff filed the Complaint against Defendants on November 10, 2010 and served Defendant

Mark Anthony Sanchez with the Summons and Complaint by substitute service on March 30, 2011

at his residence. (Dkt. No. 5.) Plaintiff personally served Defendant Raul Sanchez, Jr., with the

Summons and Complaint on April 8, 2011. (Dkt. No 6.) No answer was filed. Plaintiff moved for

entry of default by the Clerk on July 15, 2011, and the Clerk filed the Entry of Default on the same

day. (Dkt. Nos. 9-10.) Nothing in the record before the Court indicates that Defendants have ever

made any appearance in this action. Plaintiff seeks default judgment against Defendants, statutory

damages of $110,000 under 47 U.S.C. § 605, and $4,200 in damages for conversion.

DISCUSSION

I. Default Judgment

Once default has been entered by the clerk, it is within the district court’s discretion to grant

default judgment against that party. FED.R.CIV. P. 55(b)(2); Eitel v. McCool, 782 F.2d 1470, 1471

(9th Cir. 1986). When considering default judgment, “the factual allegations of the complaint,

except those relating to the amount of damages, will be take as true.” Televideo Sys., Inc. v.

Heidenthal, 826 F.2d 915, 917 (9th Cir. 1987) (citations omitted); see also FED. R. CIV. P. 8(b)(6)

(“[a]n allegation — other than one relating to the amount of damages — is admitted if a responsive

pleading is required and the allegation is not denied”). 

The Court may consider the factors articulated in Eitel v. McCool when determining whether

to grant default judgment: “(1) the possibility of prejudice to the plaintiff; (2) the merits of plaintiff’s

substantive claim; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action;

(5) the possibility of a dispute concerningmaterial facts;(6) whether the default was due to excusable

neglect; and (7) the strong policy . . . favoring decisions on the merits.” 782 F.2d at 1471-72. 

All the Eitel factors weigh in favor of granting default judgment. Section 605 prohibits the

unauthorized receipt of satellite signals. 47 U.S.C. § 605(a); DirecTV, Inc. v. Webb, 545 F.3d 837,

Case 3:10-cv-02323-BEN-NLS Document 16 Filed 10/24/11 Page 2 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 3 - 10cv2323

844 (9th Cir. 2008). Conversion requires ownership or a right to possession of property, wrongful

disposition of that right, and damages. G.S. Rasmussen & Assocs. v. Kalitta Flying Serv., 958 F.2d

896, 906 (9th Cir. 1992). Plaintiff’s Complaint alleges that Plaintiff owned the rights to the Program

and Defendants intercepted, received, and exhibited the Program in violation of § 605. (Compl. ¶¶

11, 14, 16.) Additionally, the Complaint alleges that Plaintiff suffered financial loss as a result of

this conduct. (Compl. ¶ 27.) Taking these allegations to be true, as the Court must, the Complaint

supports Plaintiff’s claim for violation of § 605 and for conversion. And, because Plaintiff has

sufficiently plead the claims asserted and offered a sworn affidavit from the investigator who

observed and documented Defendants’ violation, dispute as to material facts is unlikely. 

Additionally, Plaintiff will be prejudiced if default judgment is not entered because if the Court

denies the motion, Plaintiff has no other means to recover from Defendants. There is nothing before

the Court that would suggest the lack of response from Defendants was the result of excusable neglect.

The sum of money at stake is not substantial. And finally, while there is a strong policy favoring

disposition on the merits, that option is not available where, as here, defendants have failed to appear.

See PepsiCo. Inc. v. Cal Sec. Cans, 238 F. Supp. 2d 1172, 1177 (C.D. Cal. 2002). Because all of the

Eitel factors weigh in favor of granting default judgment, the Court GRANTS Plaintiff’s motion for

default judgment against Defendants.

II. Damages

Plaintiff seeks $10,000 in statutory damages under § 605(e)(3)(C)(i)(II) and $100,000 in

enhanced damages under § 605(e)(3)(C)(ii). Additionally, Plaintiff seeks $4,200 in damages for

conversion. 

A. 47 U.S.C. § 605

Section 605 provides for statutory damages between $1,000 and $10,000 for each violation as

the court considers just. 47 U.S.C. § 605(e)(3)(C)(i)(II). At the court’s discretion, damages may be

increased by an additional $100,000, if “the court finds that the violation was committed willfully and

for purposes of direct or indirect commercial advantage.” 47 U.S.C. § 605(e)(3)(C)(ii).

Plaintiff argues that the maximum damages are warranted based on the need to deter future

violations, the detrimental impact these violations have on this industry, and the willful nature of the

Case 3:10-cv-02323-BEN-NLS Document 16 Filed 10/24/11 Page 3 of 4
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 4 - 10cv2323

interception. The declaration provided by Plaintiff’s President, Mr. Gagliardi, claims that Plaintiff has

gone to great lengths to curb the unauthorized interception of its programming because of the millions

in lost revenue resulting from piracy of broadcasts, and indicates that the state of the technology is

such that the programming cannot be mistakenly or accidentally intercepted. (Decl. of Joseph M.

Gagliardi in Support of Plaintiff’s Application for Default Judgment (“Gagliardi Decl.”) ¶¶ 1, 4-6, 9.)

Additionally, the Court considers the number of televisions broadcasting (seven) and the significant

number of patrons present (120-140). Based on the foregoing, the Court awards $4,000 under §

605(e)(3)(C)(i)(II) for the violation and an additional $1,000 enhancement under § 605(e)(C)(ii).

B. Conversion

Plaintiff has presented the Court with evidence that Defendants could have legally purchased

the right to broadcast the Program for $4,200. (Gagliardi Decl. ¶ 8, Ex. 2 (listing $4,200 as the rate

to purchase the Program for an establishment with seating for 101-200)). Accordingly, the Court

awards $4,200 in conversion damages.

III. Attorneys’ Fees

Plaintiff requests attorneys’ fees pursuant to § 605. While § 605(e)(3)(B)(iii) indicates that the

“court . . . shall direct the recovery of full costs, including awarding reasonable attorneys’ fees to an

aggrieved party who prevails,” Plaintiff has not requested an amount of attorneys’ fees nor has Plaintiff

provided any support for such an award. Accordingly, the request for attorneys’ fees is DENIED

without prejudice.

CONCLUSION

Plaintiff’s motion for default judgment against Defendants Mark Anthony Sanchez and

Raul Sanchez, Jr., d/b/a Tacos & Beer, is GRANTED. Judgment is entered in accordance with the

foregoing for $9,200. Plaintiff’s request for attorneys’ fees is DENIED without prejudice. 

IT IS SO ORDERED.

DATED: October 24, 2011

Hon. Roger T. Benitez

United States District Judge

Case 3:10-cv-02323-BEN-NLS Document 16 Filed 10/24/11 Page 4 of 4