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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
EDWARD C.GREENBERG 1184217 (NY)[email protected] C. Greenberg, LLC.570 Lexington Avenue, 17th FloorNew York, NY 10022Telephone: (212) 697-8777
THOMAS M. REGELE, Esq. (SBN 089865)KAREN MOSKOWITZ, Esq. (SBN 109681)[email protected] Wilshire Blvd., Suite 1250Beverly Hills, California 90212Telephone: (310) 203-0808Facsimile: (310) 282-9101
Attorneys for PlaintiffDavid Strick
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
DAVID STRICK, an individual
Plaintiff,
vs.
LOS ANGELES TIMESCOMMUNICATIONS LLC d/b/aLATIMES.COM; and TRIBUNECOMPANY, a DelawareCorporation
Defendants.
Case No: CV 11-04043-CBM (Ex)
Assigned to the Hon. Consuelo B.
Marshall
PLAINTIFFS MEMORANDUM OFPOINTS AND AUTHORITIES INOPPOSITION TO DEFENDANTSMOTION TO COMPELARBITRATION AND STAYPROCEEDINGS; SUPPORTINGDECLARATIONS OF RICHARDRUSHFIELD, DAVID STRICK ANDKAREN MOSKOWITZ; AND,
EXHIBITS A THROUGH K
Hearing Date: August 1, 2011Time: 11:00 AMCourtroom: 2
Action Filed: May 11, 2011
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 1 of 18 Page ID #:469
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
MEMORANDUM OF POINTS AND AUTHORITIES
I. SUMMARY OF FACTSA.Plaintiffs BackgroundPlaintiff David Strick (Strick) has worked as a professional photographer
since the early 1970s, doing a range of work from portrait to documentary
photography. His clients have included Vanity Fair, Time Magazine, Newsweek,
Sports Illustrated, The New York Times Magazine, Business Week, and Forbes,
among others. Over time, Strick increasingly specialized in a form of candid,
documentary-style, behind-the-scenes 35mm photography of the entertainment
industry that was first most notably featured in hisbook Our Hollywood,
published in 1988 by The Atlantic Monthly Press. (Strick Decl. 2). Strick has
been referred to as the closest thing Hollywood has to an industry photographer and
he is frequently given special and unique behind-the-scenes access to television and
movie sets, where he captures the often poignant interplay between the reality of
the filmmaking process and the fantasy of the film experience, in what Strick calls
Hollywoods industrial magic. Strick gives film fans, critics and industry
insiders alike their first look at the stars and crew actually filming upcoming
television productions and movies, all of which has created a photography brand
both distinctive and highly respected. (Complaint 17-18; Rushfield Decl. 2).
In the mid-1990s, Strick began an 11 year relationship with Premiere
Magazine, originating and photographing multi-page features as well as a monthly
photo column that was first entitled The Martini (named for the last shot of the
day on theatrical productions) and subsequently called David Stricks
Hollywood. After Premiere folded in 2007, Strick created a proposal for a
photography feature that would cover the production of movies, television,
advertising and music videos, and would appear both in print and on the web, and
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 2 of 18 Page ID #:470
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
began discussions with publishing outlets including Entertainment Weekly, Yahoo
and The Los Angeles Times regarding the possible implementation of his
idea. Strick worked out an independent contractor arrangement with Defendant Los
Angeles Times (the Times), and 2 years later when his agreement with the
Times terminated, he began a similar web/print photo feature for The Hollywood
Reporter, where his work can currently be viewed on a regular basis both in print
and online. (Strick Decl. 2).
B.Stricks Agreement with LA Times.comIn February 2007, Strick made a detailed proposal for an original, online,
behind-the-scenes Hollywood photography feature to Rob Barrett, General
Manager of LA Times.com, who in turn referred him to Richard Rushfield, then
Entertainment Editor for the LA Times.com, who was overseeing the creation of
the website and who negotiated with Strick for the feature eventually known as
David Stricks Hollywood Backlot, a unique photo gallery of Stricks original
and archival work that ran on the Times website and in print in the Times
Calendar section and in its Sunday Magazine. (Strick Decl. 3; Rushfield Decl.2-
3). The Backlot feature debuted with an enormously successful launch in May
2008. Traffic for the first gallery (also referred to as story) for the upcoming
motion picture Twilight was at such a high volume that the site crashed. Web
traffic continued to be solid for the duration of the feature, typically in the range of
200,000 page views per month, and the feature was eventually included as a regular
gallery in dozens of additional Tribune owned properties throughout the United
States. (Strick Decl.14).
The first of three roll-over Archive License and Services Agreements was
signed by Strick and the LA Times in December 2007. (Rushfield Decl. 4, Exh.
A; Strick Decl9). Pertinent to the issue before this Court, in each of his
agreements with the Times, Strick unequivocally retained his copyright to all
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 3 of 18 Page ID #:471
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
original and archival photographs, worked entirely independent of any supervision,
direction or editorial control and was at all times the originator as well as the
creator of his work. (Strick Decl 5-6; Rushfield Decl.5-6). As Rushfield attests
to in his supporting Declaration: It was a clear understanding of the parties, stated
expressly and unequivocally in the agreement, that David would at all time retain
the copyright in and to his photographs and that, if and when the deal was
terminated . . . all rights licensed to the Times pursuant to the agreement, except for
those few expressly reserved, would revert back to David and all of his original
and archival work would be removed from the website. I recall we discussed how
the Times would take down his work from websites and remove the images from
the Times database, among other things. These points were of considerable
importance to David and an expressly negotiated condition of his participating in
and lending his name to the Backlot feature. (Rushfield Decl.5, emphasis added).
Rushfield goes on to confirm at Paragraph 6 of his Declaration: The use of the
words commission and assignment in the cover memorandum and Original
Agreement are a bit misleading, as there was no commissioned or assigned work
per se under the Original Agreement. I do not recall a single instance where I or
anyone else to my knowledge gave David an assignment. David was brought in
specifically because of his years of work at Premiere and other entertainment
publications, as well as his book Our Hollywood, which depicted unique behind-
the- scenes on-set photography. . . David brought with him many years of
professional contacts and a long track record of coming up with his own stories. A
large part of Davids value as a photographer was that he had the ability to do an
unusual range of entertainment stories without editorial or logistical support. . .
(See, also, Strick Decl. 11).
As important, the limited license under the Grant of Rights section of the
agreement, as to original work taken during the term of the contract, only extended
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 4 of 18 Page ID #:472
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
to those images (pictures) that were accepted for publication as agreed upon with
your editor. The clear intent and mutual understanding of the parties at the time
the agreement was negotiated was that the Times was not getting a broad license
to publish any and all pictures taken by David during the term of the contract, but
only a limited license to publish those images (pictures) that were actually accepted
for publication and published either online or in print. (Rushfield Decl. 8; Strick
Decl. 20). In other word, and contrary to the strained interpretation of this
operative phrase in Defendants moving papers, the simple act of delivering digital
files to the Times digital holding area (known as the ftp site) for storage and
safekeeping is not acceptance and, by the plain meaning of the contract and intent
of the parties, the Times could not unilaterally accept anything. Stricks active
engagement was essential as the publication of the Backlot feature was a
collaborative process with his editor: In my experience, including my experience
at the Times, only the work of staff photographers, or what is referred to generally
as work for hire, which David was emphatically not, would be automatically
owned and controlled by the publisher or employer. David was at all times an
independent contractor, who retained ownership and control of his copyright and
intellectual property. Further, as agreed upon with your editor in Davids case
meant just that: No images would be accepted for publication or published before a
collaborative process between David and a producer employed to work with him by
The Times that typically occurred within days of the publication of the images and
the release of the film or other theatrical production. Davids affirmative
engagement was essential to any publication of his work.. (Rushfield Decl.9).
C.Termination ofStricks Contract And Subsequent, DeliberateInfringements Of His Copyrights
The final Archive License and Service Agreement dated January 1, 2010
(Agreement) was signed by Strick but never executed by the Times. (Strick Decl.
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 5 of 18 Page ID #:473
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
19, Exb. B). On May 29, 2010 Strick received notice that his contract would not
be renewed and his services no longer required as of June 2010. (Strick Decl. 21).
Having fulfilled his contractual obligations for the six month period of the final
contract (January through June 2010), Strick asked the Times, among other things,
to delete from its ftp storage site 10 stories that were candidates for eventual
publication in the event his contract was renewed beyond June 2010 (and that could
only run after that date given the expected release dates of the movies) as the
galleries remained his sole intellectual property and the Times had no permission or
license for their use. (Strick Decl.22). The Times refused and months of
frustrating, time consuming negotiations ensued with the Times inventing new and
varied claims and cross-claims against Strick in the process. (Moskowitz Decl 2,
6). Stricks efforts at obtaining a non-judicial intervention of his dispute, including
by discussing mediation as an alternative dispute mechanism, failed and eventually
the Times won the war of attrition and Strick walked away without the Times
having deleted his by then registered copyrighted images from its digital storage.
(Moskowitz Decl. 3; Strick Decl. 29).
Beginning in December 2010, the Times and dozens of Tribune owned and
operated websites began infringing on Stricks copyrights. Every one of the images
that are the subject of Stricks claims in this action were uploaded to the Times
ftp site but never accepted for publication or published and are therefore
entirely outside the scope of the January 1, 2010 Agreement. (Strick Decl. 30
38). The Times has offered no evidence to the contrary in its moving papers. The
only competent evidence introduced by the Times was that Strick was paid for his
services during the contract term January through June 2010 (never disputed) and
that the Agreement contains an arbitration clause (again, not disputed). Strick
completely delivered, in fact over delivered, work and services for the final contract
period (Strick Decl. 37) and the copyrighted images that are the subject herein are
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 6 of 18 Page ID #:474
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
demonstrably outside the contract terms. This dispute should properly be
adjudicated in Federal Court and Defendants Petition to Compel Arbitration denied.
II. THE DISPUTE DOES NOT FALL WITHIN THE SCOPE OF THEPARTIES ARBITRATION AGREEMENT
A.This Court Must Decide All Arbitrability Disputes As The Parties DidNot Clearly And Unmistakably State That It Was Their Intent To
Submit This Threshold Issue to The Arbitrator
Because gateway issues of arbitrability would otherwise fall within the
province of judicial review, a more rigorous, heightened standard applies in
determining whether the parties have agreed to arbitrate the question of
arbitrability. The question is an issue for judicial determination [u]nless the parties
clearly and unmistakably provide otherwise.AT & T Techs., Inc. v.
Communication Workers, 475 U.S. 643, 649, 106 S.Ct. 1415, 89 L.Ed.2d 648
(1986) (AT & T Techs., Inc.); First Options of Chicago, Inc. v. Kaplan, 514 U.S.
938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995) (First Options.). In other words,
it is assumed that the parties agreed that arbitrability issues are to be decided by the
court unless the moving party proves that the contract language is sufficiently clear
and unmistakable to constitute a submission of threshold issues of arbitrability to
the arbitrator. (AT & T Techs., Inc., supra, at 649.) The Supreme Court has
cautioned that it is not enough that ordinary rules of contract interpretation simply
yield the result that arbitrators have the power to decide their own jurisdiction.
Rather the result must be clear and unmistakable, because the law is solicitous of
the parties actuallyfocusing on the issue. First Options, supra, 514 U. S. at pp.
944-945, 115 S.Ct. 1920. Hence, silence or ambiguity is not enough.Id.
Defendants have failed to meet their burden of proving that the parties clearly
and unmistakably agreed to arbitrate questions of arbitrability. Notably, the
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
Agreement does notcontain any explicit language providing that the arbitrator is to
decide all threshold arbitrability issues. Nevertheless, Defendants contend that the
following language in the 2010 Agreement was sufficient to clearly and
unmistakably provide that the arbitrator would have jurisdiction to decide his/her
own jurisdiction:
any and all claims, disputes or controversies between Plaintiff and
The Times shall be resolved through mediation and binding
arbitration in accordance with the most appropriate JAMS
mediation/arbitration rules in effect at the time of delivery of the
claim. The rules are incorporated by reference. (Compl., Exh. D
III.6(b).
Defendants reason that by incorporating JAMS rules by reference, some of
which presently contain a rule specifying that the arbitrator shall have the
power to determine jurisdiction and arbitrability issues (e.g., JAMS
Comprehensive Rules and Procedures, Rule 11(c)), the parties clearly
expressed their intention to accord the arbitrator the authority to determine
this issue. Defendants reasoning is faulty for at least three reasons.
First, the cited incorporation language is hopelessly vague and
ambiguous as to the phrase most appropriate. Rather than specifying
exactly which JAMS Rules are being incorporated, it refers merely to the
most appropriate rules. Which JAMS Rules, among the multiple types and
numerous rules within each type, are most appropriate? The Agreement
does not say and the parties never focused on this issue in their discussion
leading up to the subject agreements. (Moskowitz Decl 10; Strick Decl. 7).
The default position on who decides arbitrability issues is undeniably a
matter for judges, not arbitrators.AT & T, supra, 475 U.S. at pp. 648-649,
106 S.Ct. 1415. It is reasonable to assume, therefore, that the parties intended
Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 8 of 18 Page ID #:476
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
that any JAMS Rule that would empower the arbitrator to determine her own
jurisdiction (such as the current Rule 11(c)), would notbe appropriate, as
such arbitrability issues are normally and reasonably the province of the
court. Id. Certainly, Plaintiff did not intend to vest power in the arbitrator to
decide arbitrability issues. (Strick Decl., 7). Accordingly, at a minimum,
there was no meeting of the minds on this term.
Second, rather than incorporating existing rules, the language refers to
rules in thefuture - those in existence at the time a claim is delivered. Who is
to say what JAMS Rules might exist in the future when they are amended
from time to time? Rule 11(c) might or might not exist. Incorporating future
unspecified, most appropriate rules fails to even meet the basic
requirements for a valid incorporation by reference under Californias
contract law. To have a valid incorporation by reference, the document being
incorporated must actually exist at the time of incorporation so the parties
can know exactly what they are incorporating. (SeeIn re Plumels Estate
(1907) 151 Cal. 77, 80.) To go beyond existing rules and allow for the
incorporation of afuture unspecified rules, is not the kind of clear and
unmistakable language that First Options requires.
Third, the conclusion that the parties to the Agreement did not clearly
and unmistakably intend to allow the arbitrator to determine arbitrability
issues is further supported by the fact that the parties carved out a number of
matters that are not subject to arbitration. The Agreement provides that the
parties may seek, from a court of competent jurisdiction, provisional
remedies or injunctive relief in support of their respective rights and
remedies hereunder (Compl., Exh. D, Agreement III.6(e)) (emphasis
added.) Plaintiff seeks injunctive relief as part of his statutory remedies in
cause of action one through four for copyright infringement. Thus, although
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
one paragraph in the Agreement says that all claims and disputes are to be
arbitrated, another provision indicates that the courts are the appropriate
forum for some disputes, including the injunctive relief that Plaintiff seeks
herein. When an agreement is ambiguous, the court and not the arbitrator
should decide arbitrability so as not to force unwilling parties to submit a
matter they reasonably thought a judge, not an arbitrator would decide. First
Options, supra, 514 U.S. at p. 945;Hartley v. Superior Court(2011) ---Cal.
Rptr.3d ---, 2011 WL 2535582 (Cal.App. 4 Dist.), *6.
Defendants cited authorities are not persuasive.Dream Theater, Inc. v.
Dream Theater(2004) 124 Cal.App.4th
547,Bank of Am., N.A. v. Micheletti
Family Pship, No. 08-02902 JSW, 2008 U.S. Dist. LEXIS 117100 (N.D.
Cal. Oct. 14, 2008), and Contec Corp. v. Remote Solution Co., 398 F.3d 205,
208 (2nd
Cir. 2005) all involved broad, all-inclusive and unambiguous
arbitration agreements and all involved incorporation ofexisting (not future)
arbitration rules which were clearly identifiable (not amorphously referred as
those most appropriate.) In those cases, unlike here, the parties could look
up the arbitration rules to which they were agreeing beforehand and
determine that they were conferring on the arbitrators the power to determine
threshold arbitrability issues.
More instructive are Gilbert Street Developers, LLC v. La Quinta
Homes, LLC(2009) 174 Cal.App.4th
1185, 1190-1194, where the court held
that an arbitration provision incorporating the AAA rules existing at the date
of arbitration (as opposedto those that actually existed as of the date of the
agreement was signed)was not a clear and unmistakable delegation of
authority to the arbitrator to decide arbitrability issues; James & Jackson,
LLC v. Willie Gary, LLC(Del.2006) 906 A.2d 76, 78, 8081 (court, not
arbitrator, decides arbitrability issue where arbitration clause incorporates
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
AAA rules but also provides that non-breaching party may seek injunctive
relief and specific performance in court); and Katz v. Feinberg (2d Cir.
2002) 290 F.3d 95, 9697 (despite incorporation of AAA rules, court, not
arbitrator, decides arbitrability issue where purchase agreement ambiguously
contains both a broadly wordedarbitration clause and a specific clause
vesting accountants with sole authority to determine purchase price.)
In sum, because the provisions in the Agreement: (1) ambiguously and
invalidly incorporate future, unspecified JAMS Rules, which may or may not
include an arbitrators right to determine arbitrability issues; and (2) provide
that a party may seek provisional remedies and injunctive relief in court,
which Plaintiff seeks herein, the parties did not clearly and unmistakably
agree that the arbitrator would have jurisdiction to decide arbitrability issues.
Accordingly, this Court should decide all arbitrability issues in the first
instance.
B.There Is No Reasonable Interpretation Of the Agreement ThatWould Encompass The Subject Copyright Infringements,
Occurring Months After Defendant LA Times Terminated the
Contract
In cases subject to the Federal Arbitration Act, courts apply ordinary state
law contract principles in deciding whether the parties agreed to arbitrate a
particular dispute. First Options of Chicago, Inc. v. Kaplan (1995) 514 US 938,
944; 115 S.Ct. 1920, 1924; Wagner v. Stratton Oakmont, Inc. (9th Cir. 1996) 83
F3d 1046, 1049.
In determining what disputes are subject to arbitration, under California law,
the contract should be read as a whole and are to be interpreted to give effect to the
mutual intention of the parties at the time of contracting, so far as the same is
ascertainable and lawful. Cal. Civil Code 1638, 1648; Waller v Truck Ins.
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
Exchange (1995), 11 Cal.4th 1. Agreements to arbitrate are no different:
[A]rbitration is a matter of contract and a party cannot be required to submit to
arbitration any dispute which he has not agreed so to submit. United Steelworkers
of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, (1960).
Accordingly, the determination of what disputes are arbitrable is similarly focused
on the intent of the parties. See, AT & T Techs., Inc.v. Communication
Workers, 475 U.S. 643, 648-49, (1986).
Here, the intent of the parties is manifest as to what constituted accepted for
publication as agreed upon with your editor. (Rushfield Decl. 9; Strick12, 20).
Despite the efforts of Defendants to create a fictitious narrative wherein the Times
instructed and directed Strick regarding the work he did, seizing on words such as
commissioned and assign to create the impression of a staff photographer doing
work for hire during a certain term , the unambiguous and uncontroverted facts are
that Strick contracted with the Times to deliver a photography feature consisting of
a certain minimum number of image galleries per month, with a certain number of
minimum images per gallery, and he more than fulfilled his end of the bargain.
Defendants are attempting to capitalize on the fact that Strick uploaded digital files
months in advance of publication, dictated by the production and release dates of
the movies he photographed, in anticipation of his contract being renewed.
Conflating delivery with acceptance and possession with ownership, Defendants
simply want something of value for nothing.
And, however broad the wording, an arbitration clause does not and cannot
apply to disputes unrelated to matters covered by the contract.Lawrence v. Walzer
& Gabrielson (1989) 207 Cal.App.3d 1501, 1506.
III. THE RIGHT TO COMPEL ARBITRATION, IF APPLICABLE,SHOULD NOT APPLY TO TRIBUNE COMPANY.
Tribune Company is neither a party nor a signatory to the Agreement. A
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PLAINTIFFS MEMORANDUM OF POINTS AND
AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS
non-signatory to an agreement can only invoke the rights of the agreement and a
right to compel arbitration if the claims against it are inextricably intertwined and
inherently inseparable from those against a signatory to the agreement, or similarly
based on a theory of equitable estoppel (See, Goldman v. KPMG, LLP, 173 Cal.
App. 4th 209, 218 (Cal. App. 2d Dist. 2009);Molecular Analytical Systems v.
Ciphergen Biosystems, Inc., 186 Cal. App. 4th 696, 715 (Cal. App. 6th Dist. 2010) ;
Amisil Holdings Ltd. v. Clarium Capital Mgmt. LLC, 622 F. Supp. 2d 825, 830
(N.D. Cal. 2007)). As shown below, Tribune cannot enforce the right to compel
arbitration under the Agreement between Plaintiff and the LA Times under either
situation.1
A. Neither Tribune, Nor LA Times, Was A Signatory To TheAgreement.
Preliminarily and notably, the January 1, 2010 Agreement was never fully
executed, and never signed by the LA Times. Thus, Tribune makes a novel attempt
to seek the benefits of an agreement never even signed by its subsidiary, LA Times.
Defendants have not cited to any authority holding that a non-signatory to an
arbitration agreement can compel a purported party to an unexecuted arbitration
agreement to arbitrate its claims against the non-signatory, especially when the
unexecuted agreement concerns copyrights and licensing arrangements where the
United States Constitution and Federal statutes mandate that the intent of the parties
be unambiguous, clear and manifest. For that reason alone, Tribune does not have
standing and cannot compel Strick to arbitrate his claims.
///
///
1As a non-signatory demanding arbitration, Tribunes status is first determined bythis Court, not an arbitrator. See, e.g., Carpenters 46 No. Calif. CountiesConference Bd. v. Zcon Builders (9th Cir. 1996) 96 F.3d 410, 414 (court mustdecide whether nonsignatory has standing to arbitrate);American Builder's Ass'n v.
AuYang (1990) 226 Cal.App.3d 170, 179 (same).
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B.The Claims Against Tribune And LA Times Arise Independent OfThe Unexecuted Agreement And Are Neither Identical Nor
Inextricably Intertwined With Each Other; Rather, They Are
Separate And Distinct.
The case law relied upon by Defendants (Motion, pp. 13-14) presupposes
that the claims against both the non-signatory and signatory are based on the
agreement containing the arbitration clause, have identical factual allegations, and
are inherently inseparable. Here, none of these predicates, let alone all three, is
present.
First, as explained in Section II, supra, Stricks claims against LA Times and
Tribune do not arise from, and are outside of, the scope of the arbitration
agreement. Simply put, the contemplated license and scope of the Agreement
pertains only to those images accepted for publication or published by
LATIMES.COM as agreed upon with your editor. Such images are neither in
dispute, nor the subject of this action. (See 37 of the Strick Declaration for a
description of the photo galleries that were licensed to the Times during the term of
his last agreement, none of which images are at issue in this action). It is other
specifically identified photographsby Strick, which were not accepted for
publication or published by LATIMES during the term of the Agreement which
are the subject of this lawsuit. (Rushfield Decl. 8-9; Strick Decl. 12, 20, 30-36.
38, 40). These subject images were outside the scope of the Agreement and thus
not subject to the terms therein, including Section III.6 (Arbitration). See,
Mundi v. Union Sec. Life Ins. Co., 555 F.3d 1042 (9th Cir. Cal. 2009) (holding that
the District Court properly denied defendants motion to compel arbitration because
the claims were outside the scope of the arbitration provision); Goldman v. KPMG,
LLP, 173 Cal. App. 4th 209, 230 ( 2009) (denying defendants motion to compel
arbitration because the claims were not founded in or inextricably bound up with,
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the terms of the operating agreement.) It does not follow that because Strick
merely mentions the Agreement in the complaint, the claims are founded in,
dependent upon or inextricably intertwined with the Agreement. See, e.g., Positive
Software Solutions, Inc v. New Century Mortg. Corp., 259 F.Supp.2d 531, 540
(N.D. Tex 2003). Stricks claims against Tribune are soundly based upon rights
granted and guaranteed by the United States Constitution and Federal Statutes.
Defendants inaccurately suggest (Motion, p. 14) that Plaintiff is attempting to
play fast and loose with its commitment to arbitrate, honoring it when
advantageous and circumventing it to gain undue advantage. Quite to the
contrary, Plaintiff here never agreed to arbitrate over issues concerning the images
which are the subject of this litigation and wholly outside the scope of the
arbitration provisions. It is fundamental that the public policy favoring arbitration
does not apply to disputes the parties have not agreed to arbitrate (See,AT&T
Techs. v. Communs. Workers of Am., supra, 475 U.S. at 648;Engineers &
Architects Assn. v. Community Development Dept. (1994)30 Cal.App.4th 644, 652-
653. Under these circumstances, the equitable estoppels doctrine does not apply.
Second, the claims against Tribune and LA Times are based on separate
and distinctfactual allegations. While Strick alleges that LA Times unlawfully
published numerous of Plaintiffs images to the LA Times website without
Plaintiffs license, authorization, or consent, he separately avers that Tribune itself
wrongfully published hundreds of Stricks images to websites that the Tribune, not
LA Times, owns and controls, inter alia, KTLA-TV (CW) Los Angeles
(www.ktla.com), KSWB-TV (FOX) San Diego (www.fox5sandiego.com), WPHL-
TV (MY) Philadelphia (www.myphl17.com), KTXL-TV(FOX) Sacramento
(www.fox40.com), WGN-TV (CW) Chicago (www.WGNtv.com), CLTV
Chicagoland Television 24-Hour News (www.CLTV.com), WCCT-TV (CW)
Hartford (www.ct.com), ddd, 5 news, wgn, Sun Sentinel (www.SunSentinel.com),
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Daily Press (www.DailyPress.com), The Morning Call (www.mcall.com), and
many others, in violation of his Constitutional and statutorily granted rights. 17
U.S.C. 501 et seq., The Copyright Act. (Complt., 62-78; Strick Decl., 30
- 36). In short, this is not a case where the parent company is named in the claims
based upon misconduct solely committed by its subsidiary under a vicarious
liability theory, agency allegation or the like, but rather, the parent company itself,
separately and independently, violated Stricks copyrights.
Third, Stricks claims against Tribune are separate and distinct from his
claims against LA Times. Under Copyright Law, each infringement of a separate
image, and each infringement by a separate infringer, constitutes a separate and
distinct infringement (see, 17 U.S.C. 501; 504(c); Microsoft Corp. v. Evans,
2007 U.S. Dist. LEXIS 77088, 16-17 (E.D. Cal. Oct. 16, 2007); Playboy Enters. v.
Sanfilippo, 1998 U.S. Dist. LEXIS 5125 (S.D. Cal. Mar. 24, 1998)). Thus, each
infringement by Tribune on websites other than the LA Times website constitutes
an infringement separate and distinct from those claimed against LA Times (Id.).
Here, if Strick had no claims against LA Times, then he would still have claims
against Tribune as such claims involve separate and independent infringements of
Plaintiffs copyrighted images. (Complt., First and Second Claims for Relief for
Copyright Infringement under 17 U.S.C. 501, et seq. of the Copyright Act.)
Defendants reliance on Fujian Pac. Elec. Co. v. Bechtel Power Corp., 2004
U.S. Dist. LEXIS 23472 (N.D. Cal. Nov. 18, 2004), which held that a non-
signatory parent may enforce the arbitration clause of an agreement executed by its
subsidiary if failure to do so would render the arbitration proceedings with the
subsidiary meaningless, is misplaced. Here, if Strick proceeded in litigation against
Tribune, such would not affect an arbitration (if such were to occur) between
Plaintiff and LA Times, as his claims against Tribune are separate and distinct, and
stand on their own merit, from those as against LA Times. See,Mundi v. Union
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Security Life Ins. Co., 555 F.3d 1042, 1047 (9th
Cir. 2009); Goldman v. KPMG,
LLP, supra, 173 Cal.App.4th at 230;Jones v. Jacobson (2011) 195 Cal. App. 4th
1, 20- all finding that plaintiffs claims were not inextricably intertwined with or
inherently inseparable from the agreement containing the arbitration provisions.
For the many foregoing reasons, Plaintiff respectfully requests that if the
Court grants defendant LA Times motion to compel arbitration, it should deny
same with respect to Tribune, allowing Plaintiff to continue to litigate as against
Tribune and exercise its discretion to stay any arbitration proceedings with the LA
Times until such time as the Federal case against Tribune has resolved through
judgment or otherwise.
IV. CONCLUSIONPredating the Bill of Rights, the framers we so concerned with the rights of
creators and their effect on society that at Article I, Sec. 8. Clause 8 of the United
States Constitution, they provided for such rights lest they be left to less substantial
documents by inserting, To promote the Progress of Science and useful Arts, by
securing for limited times to Authors and Inventors the exclusive Right to their
respective Writings and Discoveries. This right to secure a copyright is so central
that it cannot be transferred, abrogated, waived or assigned except under very
limited and specific, written conditions. The Copyright Act, USC Title 17, further
specifies the rights and remedies available to creators as Congress has deemed
appropriate time and again over the centuries.
It is axiomatic that Federal Courts have exclusive jurisdiction over any civil
matter arising under copyrights (28 U.S.C.S. 1338: Vestron, Inc. v. Home Box
Office Inc., 839 F.2d 1380, 1381 (9th Cir. 1988).
It is undisputed that Strick was the creator of and holds the copyrights in the
subject images in this action. Rights granted by the Constitution are not easily or
casually waived. In order for a copyright holder to validly and exclusively license
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his work to another, his intent must be clearly and manifestly memorialized in an
unambiguous writing (17 U.S.C. 204; Konigsberg Int'l v. Rice, 16 F.3d 355, 356-
357 (9th Cir. Cal. 1994); Bieg v. Hovnanian Enterprises, Inc. 157 F.Supp.2d 475
480 (E.D. Penn 2001). The reasoning is clear; the writing must be clear, specific
and unambiguous to ensure both that the copyright holder does not give away his
work and property rights inadvertently and that the parties understand precisely
what they are bargaining for and describe the bounds of intangible rights that
cannot be seen or felt.
Here, there is no clear and manifest expression of intent on the part of Strick
to license his copyrights. Plaintiff should be entitled to litigate his important
property rights in this Court, and Defendants Motion to Compel should be denied.
Respectfully Submitted on July 11, 2011.
Edward C. Greenberg, LLC.
EDWARD C.GREENBERG
THOMAS M. REGELEKAREN MOSKOWITZ
By:_____________/s/_______________Karen Moskowitz, Esq
Attorneys for PlaintiffDAVID STRICK
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