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Facebook v Grunin Doc62 Case Management Statement 10-23-14

Facebook v Grunin Doc62 Case Management Statement 10-23-14
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  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 -1- JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER (Case No. 14-cv-02323) LEGAL123597879.5  Judith B. Jennison, Bar No. 165929 PERKINS COIE  LLP  1201 Third Avenue, Suite 4900 Seattle, WA 98101-3099 Telephone: 206.359.8000 Facsimile: 206.359.9000 Attorneys for Plaintiff FACEBOOK, INC. Andrew B. Gordon, (  pro hac vice ) GORDON LAW GROUP, LTD. 1 1st Bank Plz, Suite 302 Lake Zurich, IL 60047 Telephone: (847) 580-1279 Facsimile: (847) 305-1202 Seth Weinstein, Bar No. 279625 LAW OFFICES OF SETH WEINSTEIN 15260 Ventura Blvd. Suite 1200 Sherman Oaks, CA 91403 Telephone: (310) 707-7131 Facsimile: (818) 475-1945 Attorneys for Defendant MARTIN GRUNIN UNITED STATES DISTRICT COURT  NORTHERN DISTRICT OF CALIFORNIA SAN FRANCISCO DIVISION FACEBOOK, INC., Plaintiff, v. MARTIN GRUNIN, Defendant. Case No. 2014-CV-02323 JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER Case3:14-cv-02323-WHA Document62 Filed10/23/14 Page1 of 10  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- JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER (Case No. 14-cv-02323) LEGAL123597879.5  Plaintiff Facebook, Inc. and Defendant Martin Grunin hereby submit this JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER pursuant to the Standing Order for All Judges of the Northern District of California dated July 1, 2011, and Civil Local Rule 16-9. 1.   Jurisdiction and Service This is an action under 28 U.S.C. § 1331 because Facebook alleges that Grunin violated the Computer Fraud and Abuse Act, 18 U.S.C. § 1030. The Court has supplemental jurisdiction over Facebook’s state law claims under 28 U.S.C. § 1367. In addition or alternatively, the Court has subject matter jurisdiction over this action under 28 U.S.C. §1332(a) because there is diversity of citizenship between the parties, and the matter in controversy exceeds the sum or value of $75,000, exclusive of interests or costs. Facebook personally served Grunin with the Complaint and Summons on May 22, 2014, in accordance with Fed. R. Civ. P. 4(e)(2)(A). Grunin does not dispute jurisdiction or service. 2.   Facts A. Plaintiff’s Description Of The Case Facebook alleges that Grunin is a serial abuser of Facebook’s platform and services who has repeatedly and willfully violated Facebook’s terms of service, abused and violated his Facebook privileges for his own profit, and defrauded Facebook. Facebook’s Complaint alleges that Grunin, among other things: ã   Placed pornographic advertisements on Facebook in violation of Facebook’s terms of service; ã   Created more than 70 bogus user accounts to access Facebook's site and services despite being banned from Facebook as a result of his violation of Facebook’s terms; ã   Sold access to Facebook advertising accounts without authorization; ã   Tricked Facebook users into participating in deceptive interactive advertising schemes that lured them to commercial websites that paid Grunin commissions for the referrals and/or traffic; and Case3:14-cv-02323-WHA Document62 Filed10/23/14 Page2 of 10  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- JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER (Case No. 14-cv-02323) LEGAL123597879.5   ã   Defrauded Facebook by taking over the advertising accounts of other legitimate Facebook users, and then posing as those legitimate users to convince Facebook representatives to increase the advertising limits on those advertising accounts so that he could run his own ads on the other Facebook users' accounts without ever  paying for the advertising. After this suit was filed and served, Grunin denied this Court’s authority and engaged in a course of conduct designed to frustrate Facebook’s enforcement efforts and impede the legal  process. Among other things he: ã   Hired Brian Robert Costello, a non-lawyer who openly advertises that he “represents” clients by rejecting the existence of authorities—such as courts—that seek to impose power over them; ã   Continued to engage Costello even after Facebook filed its Motion for an Order Prohibiting Brian Robert Costello from Appearing on Behalf of Defendant and to Strike Grunin’s filings to date (“Motion to Strike”) (Dkt. 18.), which explicitly put Grunin on notice that Costello’s behavior was not only inappropriate, but in violation of the law; ã   Signed a document entitled “Notice of Offer to Settle,” demanding $500,000 from Facebook for failure to accept the offer and demanding a penalty of $500,000 against the Court for issuing any orders or judgments, or otherwise interfering with the dispute (Dkts. 23, 27); and ã   Signed an affidavit in which he states, among other things, that the U.S. District Court does not exist, he is not a citizen of the United States, he is not subject to federal law, and this case does not exist (Dkt. 35). Facebook filed a Motion on June 14 for an Order Prohibiting Brian Robert Costello from Appearing on Behalf of Defendant and To Strike Dockets 8, 10, and 17 (dkt. 18). Judge Breyer issued an Order to Show Cause on July 9 why that motion should not be granted. Grunin did not respond, but instead filed a number of documents before the show cause deadline, including a Case3:14-cv-02323-WHA Document62 Filed10/23/14 Page3 of 10  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- JOINT CASE MANAGEMENT STATEMENT AND PROPOSED ORDER (Case No. 14-cv-02323) LEGAL123597879.5  “Notice of Offer to Settle,” that, among other things, stated that the Court would be fined $500,000 for issuing rulings adverse to Grunin or otherwise intervening in this case (dkt. 27); a “Legal Notice,” which claimed that Facebook’s Motion to Strike “has no validity or legal effect” and that Costello is “a Public Minister of the united states [sic] of America” (dkt. 30); and a “Notice of Default in Dishonor Consent to Judgment,” which claimed that Facebook was in “default” for failing to “honor” Grunin’s/Costello’s “Settlement Offer” (dkt. 31). Judge Breyer granted Facebook’s Motion to Strike on July 21, 2014 (dkt. 33). Grunin’s default was entered on June 23, 2014 (dkt. 22). Grunin retained legitimate legal counsel in August and they appeared on Grunin’s behalf on August 15. B. Grunin’s Description of the Case Grunin contends Facebook has no legal or factual basis for bringing this lawsuit. Facebook has alleged a Breach of Contract claim, along with three claims of Fraud against Grunin. (Dkt. 1 at 10(3), 10(19), 11(14), 12(6)). Essential to each individual cause of action raised in its Complaint, Facebook must demonstrate that it was in fact Grunin who committed the acts alleged in the Complaint. In the Complaint Facebook relies on the proposition that 1) Grunin actually controlled the srcinal Martin Grunin Facebook account and therefore consented to its terms of service. (Dkt. 1 at ¶ 12 and ¶19) and 2) that Grunin himself impersonated various individuals in order to gain access to Facebook advertising space (Dkt. 1 at ¶31- ¶48). What Facebook does not allege, however, is that it ever tried to verify Martin Grunin’s identity. Facebook never once alleges that anyone from its company ever met Grunin face to face. Facebook never even alleges that anyone ever spoke with an individual representing himself as Grunin over the phone. All of Facebook’s claims rely on the notion that Grunin, the individual they have sued, has wronged them in some way; however Facebook has failed to  prove, or even allege, that Grunin is in fact the “Martin Grunin” with a Facebook account they seek. Case3:14-cv-02323-WHA Document62 Filed10/23/14 Page4 of 10

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Jul 23, 2017
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