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Case 1:11-cv-24142-PAS Document 1 Entered on FLSD Docket 11/16/2011 Page 1 of 40

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION

CASE NO.: ____________________________________ x FIVE FOR ENTERTAINMENT S.A., d/b/a FIVE : LIVE ENTERTAINMENT and DIEGO HERNAN : DE IRAOLA, : : Plaintiffs, : : COMPLAINT AND JURY DEMAND -against: : RAMON LUIS AYALA RODRIGUEZ a/k/a/ :DADDY YANKEE, EL CARTEL RECORDS INC, ICARO SERVICES INC., and EDGAR BALDIRI MARTINEZ, Defendants.

----------------------------------------------------------xPlaintiffs Five for Entertainment S.A. d/b/a Five Live Entertainment (Five Live) and Diego Hernn de Iraola (De Iraola) (collectively, Plaintiffs), by and through their attorneys, for their complaint against Defendants Ramn Luis Ayala Rodriguez a/k/a Daddy Yankee (Daddy Yankee), El Cartel Records, Inc. (El Cartel), Icaro Services Inc. d/b/a Icaro Booking Services (Icaro), and Edgar Baldiri Martinez (Baldiri) (collectively, Defendants), allege as follows: INTRODUCTION 1. This is an action brought, in part, in contract for the Defendants failure to honor

certain contractual promises. As set forth in a written agreement, Defendant Daddy Yankee was to perform at no fewer than six concerts in Argentina in or about November 2010. As detailed below, Plaintiff Five Live paid Daddy Yankees representative approximately $800,000.00 for

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the rights to these concerts. However, just days before the first of the scheduled concerts, and after Plaintiff Five Live incurred more than a million dollars of expenses in promoting and producing these concerts, Daddy Yankee abruptly and without cause unilaterally cancelled the entire tour. Daddy Yankee has nonetheless wrongfully retained the entirety of the funds paid to him, and has failed to reimburse to Plaintiff Five Live the expenses Five Live incurred in reliance on the contract or otherwise compensate Five Live for the injuries suffered as a result of the breach. 2. This action is also brought in tort for the Defendants systematic public relations

smear campaign consisting of both slanderous and libelous statements against Plaintiffs, in which Defendants wrongfully and publicly blamed Plaintiffs for Daddy Yankees last-minute cancellation of the tour. The public relations campaign included defamatory and actionable statements that were intended to and did harm Plaintiffs business and reputation, proximately causing economic harm to both Plaintiffs and severe emotional distress to Plaintiff De Iraola. PARTIES, JURISDICTION AND VENUE 3. Plaintiff Five Live is a corporation organized under the laws of the Republic of

Argentina, with its principal place of business at Rivadavia 670, Neuqun, Neuqun, Argentina. Five Live produces shows and events in Argentina, with a particular focus on the production of concerts for well-known musical artists from South America, Europe and the United States. 4. Plaintiff De Iraola is the president and majority shareholder of Five Live. De

Iraola is of Argentine nationality and is domiciled in Buenos Aires, Argentina. 5. Upon information and belief, Defendant Daddy Yankee is a United States citizen

domiciled in Puerto Rico. Daddy Yankee is an internationally well-known, multiple Billboard and Grammy award-winning singer of Reggaeton music. With more than eight million albums

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sold, five No. 1 hits on Billboard's radio charts, and a blockbuster film, Daddy Yankee is the top-selling Latin urban artist of the decade according to Billboard Magazine (2010.) He is the founder and CEO of his own record label, has appeared in television shows, movies, and branding campaigns for various products, and has created his own lines of footwear and cologne. 6. Upon information and belief, Defendant El Cartel is a corporation organized

under the laws of Puerto Rico, with its principal place of business at Ponce de Leon 1612, Suite 301, San Juan, Puerto Rico 00909. El Cartel is Daddy Yankees record label company. 7. Upon information and belief, Defendant Icaro is a corporation organized under

the laws of the state of Florida, with its principal place of business at 1401 Sawgrass Corporate Parkway, Suite 118, Sunrise, Florida 33323. Icaro is a booking agent, providing publicity, marketing, and organization of concerts and events on behalf of a variety of musical artists. Icaro is Daddy Yankees booking agent. 8. Upon information and belief, Defendant Baldiri is the president and registered

agent of Icaro. He is a Colombian citizen admitted to the United States for permanent residence and domiciled in the state of Florida, at 1401 Sawgrass Corporate Parkway, Suite 118, Sunrise, Florida 33323. 9. This Court has subject matter jurisdiction over these claims pursuant to 28 U.S.C.

1332, as there is complete diversity between the parties, and the amount in controversy exceeds $75,000.

10.

This Court has personal jurisdiction over Daddy Yankee pursuant to Fla. Stat.

48.193(1)(a) and (2). Upon information and belief, Daddy Yankee has systematically conducted business in the State of Florida through Icaro, a corporation formed under the laws of

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and with its principal place of business in the State of Florida and which has handled the booking of Daddy Yankees concerts and events, and entered into contractsincluding the contracts at issue in this actionon his behalf, since at least 2009.

11.

Further, upon information and belief, Daddy Yankee also employs a Florida-

based company, Nevarez Communications, to perform his press and public relations work, a substantial amount of which is directed at the Florida market. Daddy Yankee has performed numerous concerts and publicity events in the State of Florida, and has advertised and sold his footwear and cologne products there, as well as recordings of his music. 12. Similarly, this Court has personal jurisdiction over El Cartel pursuant to Fla. Stat.

48.193(1)(a) and (2) because, upon information and belief, it too systematically conducts business in the State of Florida, including on Daddy Yankees behalf through Icaro and otherwise. El Cartel worked with Icaros Florida-based personnel in connection with Daddy Yankees 2010 Argentina tour that was the subject matter of the contracts at issue in this dispute. 13. This Court has personal jurisdiction over Icaro and Baldiri, as they are residents

of the State of Florida. 14. Venue is proper in this Court pursuant to 28 U.S.C. 1391(a)(2), as a substantial

portion of the events giving rise to this complaint took place in Florida. Among other things: (i) the underlying contract was drafted and emailed to Plaintiffs by Icaro from its office in Florida, and bears Icaros Florida address on the bottom of each page; (ii) Plaintiff Five Live transferred payments under the contract electronically to Icaros bank account in Florida; (iii) Defendants issued a communication announcing the cancellation of the shows contracted and paid for through Icaros Florida-based office, thereby repudiating and breaching the parties

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contract; and (iv) Defendants published a number of defamatory and actionable oral and written statements at issue in this action through Icaro from its Florida office. Alternatively, venue is appropriate pursuant to 28 U.S.C. 1391(a)(3). FACTS 1. Five Live and its Business Model 15. Five Live is a company organized under the laws of Argentina since 2009. Until

recently, Five Live had been engaged in the production of music shows and other events such as sporting events, promotional activities and VIP meetings. Five Live was known for producing concerts and other events that included premium tickets with access to VIP lounges (that included entertainment), merchandising and occasional access to the artist/s. It had also developed a preeminent position in the show producing business in virtually every province in Argentina. 16. Up until the events giving rise to this complaint, Five Live had succeeded in

positioning its brand in the entertainment business. It enjoyed a well-established track record of producing shows in Argentina for well-known artists from Latin America (e.g., Ricardo Arjona, Los Fabulosos Cadillacs, Gustavo Ceratti, Andrs Calamaro), Puerto Rico (Wisin & Yandel, Daddy Yankee), and Europe (Joaqun Sabina). 2. The 2009 Tour: Daddy Yankees First Visit to Argentina 17. In 2009 Five Live produced two live performances by Daddy Yankee in

Argentina and supervised the production of various other shows by Daddy Yankee during that time (the 2009 Tour).

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18.

Icaro was at the time of the 2009 Tour, and it continues to be without interruption

through this present date, Daddy Yankees and El Cartels agent for any and all matters relating to the booking of Daddy Yankees services and performances. 19. At the conclusion of the 2009 Tour, Baldiri, on behalf of Icaro, which in turn was

acting as Daddy Yankees agent, advised Plaintiff De Iraola that they should work together to arrange a follow-up tour. On or about March 9, 2010, Baldiri reiterated to Plaintiff De Iraola his intention to work with Five Live on a second tour to Argentina and invited De Iraola to meet in Buenos Aires, Panama, Colombia, or any other location of De Iraolas choice for this purpose. As Baldiri stated in a March 9,