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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
Judith B. Jennison, Bar No. 165929
JJennison@perkinscoie.com
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.
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
SAN FRANCISCO DIVISION
FACEBOOK, INC.,
Plaintiff,
v.
MARTIN GRUNIN,
Defendant.
Case No. 2014-CV-02323
PLAINTIFF FACEBOOK, INC.S CASE
MANAGEMENT STATEMENT AND
PROPOSED ORDER
Plaintiff Facebook, Inc. hereby submits this CASE MANAGEMENT STATEMENT &
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. Facebook has not prepared this
statement with Defendant Martin Grunin because he has defaulted, and no licensed attorney has
yet to appear on his behalf.
1. Jurisdiction and Service
Facebook brings this action under 28 U.S.C. 1331 because Facebook alleges that Grunin
violated the Computer Fraud and Abuse Act, 18 U.S.C. 1030. This Court has supplemental
jurisdiction over Facebooks state law claims under 28 U.S.C. 1367. Facebook personally
Case3:14-cv-02323-CRB Document40 Filed08/13/14 Page1 of 7
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
served Grunin with the Complaint and Summons on May 22, 2014, in accordance with Fed. R.
Civ. P. 4(e)(2)(A).
2. Facts
Facebook brings claims against Grunin for (a) breach of contract, (b) violation of 18
U.S.C. 1030, (c) violation of California Penal Code 502(c), and (d) fraud based upon Grunins
illegal and fraudulent activities on Facebook.
Defendant Martin Grunin is a serial offender of Facebooks platform and services who has
repeatedly and willfully violated Facebooks terms of service, abused and violated his Facebook
privileges for his own profit, and defrauded Facebook. Grunins specific unlawful activities
include, but are not limited to:
Accessing Facebook without authorization: Facebook has repeatedly taken
technical measures to block Grunins access to Facebook, which Grunin has
knowingly and purposely defied. Since 2011, Facebook has disabled at least 70
accounts linked to Grunin for violations of Facebooks Terms;
Selling access to Facebook advertising accounts without authorization;
Tricking Facebook users into participating in deceptive interactive advertising
schemes that lure them to commercial websites that pay Grunin commission; and
Defrauding Facebook in excess of $340,000 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
their advertising accounts so that he can run his own ads on the other Facebook
users' accounts without ever paying for the advertising.
Grunin did not respond to Facebooks Complaint, and the Clerk of the Court entered
default. Facebook is preparing to file a Motion for Entry of Default Judgment.
3. Legal Issues
Facebook seeks damages and injunctive relief against Grunin for the following claims:
a) Breach of contract;
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
b) Violation of the federal Computer Fraud And Abuse Act, 18 U.S.C.
1030;
c) Violation of the California Computer Data Access and Fraud Act, CAL.
PEN. CODE 502(c); and
d) Fraud.
4. Motions
On June 19, 2014, Facebook filed a Motion For an Order Prohibiting Brian Robert
Costello from Appearing on Behalf of Defendant and To Strike Dockets 8, 10, and 17 (dkt. 18).
On July 9, 2014, this Court issued an Order to Show Cause 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 Notice of Offer to Settle, that, among other things, states that this Court
will be fined $500,000 for issuing rulings adverse to Grunin or otherwise intervening in this case
(dkt. 27); a Legal Notice, which claims that Facebooks 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 claims that Facebook is
in default for failing to honor Grunins/Costellos Settlement Offer (dkt. 31). The Court
granted that Motion on July 21, 2014 (dkt. 33).
On June 19, 2014, Facebook also filed a Motion for Entry of Default (dkt. 19). The Court
granted the Motion and entered default against Grunin on June 23, 2014 (dkt. 22). Facebook is
preparing, and expects to file shortly, a Motion for Entry of Default Judgment.
Although Grunin has failed to appear or file any responsive pleadings in this case, he has
filed a number of documents with the Court. See dkts. 8, 10, 17, 23, 26, 27, 30, 31, 32, 35, and
36. These filings (a) are impermissible under the Federal Rules of Civil Procedure and the
Northern District of California Local Rules, (b) disavow this Courts judicial powers, see dkt. 35
(denying that the Court exists or has any powers), and (c) make extortionist demands of Facebook
and the Court, see, e.g., dkt. 8 (demanding that Facebook pay Grunin $1 million for the
unauthorized use of his name in pleadings) and dkt. 27 (demanding $500,000 from the Court if
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
it intervened in the dispute between Facebook and Grunin). It appears that Brian Robert Costello
has continued to participate in the case by recording documents in Nevada and filing pleadings
with Grunin's name affixed to them, despite the Court's Order barring him from doing so. See,
e.g., Affidavit of Specific Negative Averement (dkt. 35) (this document was mailed to the
Court from Nevada and filed with the county recorder in Nevadawhere Costello resides, and
contains statements about being a Sovereign Citizen and about how the court system has no
jurisdiction over Grunin); Certificate of Administrative Judgment(s) (dkt. 36) (also filed with
the county recorder in Nevada and signed by Costellos girlfriend, Connie Huang); Amended
Certificate of Administrative Judgment (dkt. 37) (mailed to the Court from Nevada and signed
by Connie Huang); Affidavit (dkt. 39) (mailed to the Court from Nevada).
5. Amendment of Pleadings
Facebook does not anticipate any amendment of the pleadings at this time.
6. Evidence Preservation
Facebook reviewed the Guidelines Relating to the Discovery of Electronically Stored
Information (ESI Guidelines), and took proportionate steps to preserve evidence relevant to the
issues reasonably evident in this action. Grunin demanded that Facebook tender payment of
$100,000 in exchange for his preservation of evidence related to this lawsuit. (Dkt. 17.) To date,
Facebook does not know whether Grunin has preserved any evidence in connection with this
action.
7. Disclosures
Because Grunin has defaulted, Facebook did not attempt to meet and confer or provide
initial disclosures.
8. Discovery
Because Grunin has defaulted, no discovery has been taken in this matter. Facebook
intends to file a Motion for Entry of Default Judgment and does not anticipate that discovery will
be necessary. Accordingly, Facebook has not submitted a proposed discovery plan.
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
9. Class Actions
This case is not a class action.
10. Related Cases
There are no related cases pending in this District or elsewhere.
11. Relief
Plaintiff seeks compensatory damages in the amount of $340,745.40, economic damages
in a sum as yet to be determined, punitive damages in the amount of $1 million, and costs and
fees as yet to be determined.
12. Settlement and ADR
There are no current prospects for settlement or ADR.
13. Consent to Magistrate Judge For All Purposes
Facebook declined to proceed before a U.S. Magistrate Judge.
14. Other References
This case is not suitable for other references.
15. Narrowing of Issues
Facebook anticipates no narrowing of the issues.
16. Expedited Trial Procedure
This case is not suitable for expedited trial procedures.
17. Scheduling
Facebook plans to file a Motion for Entry of Default Judgment. At this time, that is the
only proceeding Facebook anticipates.
18. Trial
Because Facebook intends to seek the entry of Default Judgment, Facebook does not
anticipate that this case will go to trial. Facebook did, however, demand a trial by jury if the case
does proceed to trial.
19. Disclosure of Non-parties Interested Entity or Persons
Facebook filed a certificate of interested entities pursuant to Civil Local Rule 3-15.
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
20. Other
On August 6, 2014, an attorney from Chicago, Andrew Gordon, contacted counsel for
Facebook claiming to represent Grunin. He indicated that his local counsel in California would
be filing a notice of appearance within days, but no such appearance has yet been filed. He
indicated he would be preparing to file a motion to set aside the Entry of Default. Facebook plans
to oppose any such motions, and to proceed with its Motion for Default Judgment.
.
DATED: August 13, 2014 PERKINS COIELLP
By: /s/
Judith B. Jennison, Bar No. 165929
JJennison@perkinscoie.com
Attorneys for Plaintiff
FACEBOOK, INC.
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PLAINTIFFS CASE MANAGEMENT
STATEMENT AND PROPOSED ORDER
(Case No. 14-cv-02323)
CASE MANAGEMENT ORDER
The above CASE MANAGEMENT STATEMENT is approved as the Case Management
Order for this case and all parties shall comply with its provisions.
IT IS SO ORDERED.
Dated: ___________________ ________________________________________
Honorable Charles R. Breyer
District Court Judge
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