B. Lewis Productions, Inc. v. Angelou

99 F. App'x 294
CourtCourt of Appeals for the Second Circuit
DecidedMay 21, 2004
DocketNos. 03-7864(L), 03-7922(XAP)
StatusPublished
Cited by1 cases

This text of 99 F. App'x 294 (B. Lewis Productions, Inc. v. Angelou) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B. Lewis Productions, Inc. v. Angelou, 99 F. App'x 294 (2d Cir. 2004).

Opinion

SUMMARY ORDER

ON CONSIDERATION WHEREOF, IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that the judgment and order of the district court be and hereby is AFFIRMED IN PART and VACATED IN PART.

Plaintiff B. Lewis Productions appeals from a grant of summary judgment entered by the Southern District of New York (Michael B. Mukasey, Chief Judge) dismissing its claims against poet Maya Angelou for breach of fiduciary duty in connection with a joint venture agreement and breach of the implied covenant of good faith and fair dealing, and dismissing its related claims against Hallmark Cards, Inc. Defendant Angelou cross-appeals the grant of summary judgment against her on her counterclaims of fraud and unilateral mistake against B. Lewis Productions and Butch Lewis. Because the district court considered only whether the letter agreement underlying this dispute created a joint venture or could be interpreted as an exclusive agency agreement, we vacate in part the grant of summary judgment and remand for further proceedings consistent with this order. We also note that, on remand, the plaintiff should be permitted to amend its complaint to include a plea for recovery based in quantum meruit.

In November of 1994, the poet Maya Angelou — after some negotiations pursued by her friend Robert W. Brown — signed a letter agreement (the “Letter Agreement”) that purported to create a joint venture between her and B. Lewis Productions, an entity founded by the former prize fighter Butch Lewis. Pursuant to this agreement, B. Lewis Productions approached several [296]*296card distributors about potential placement of Angelou’s works. Hallmark Cards expressed interest in pursuing a relationship and B. Lewis Productions began negotiating on Angelou’s behalf. Because B. Lewis Productions refused to show the purported joint venture agreement to the Hallmark representatives, the latter insisted upon receiving other proof that the company was, in fact, authorized to negotiate for Angelou. On June 16, 1996, Angelou herself signed a missive to Hallmark stating that “This will confirm that Butch Lewis Productions, Inc. (BLP) has the exclusive right to represent Dr. Maya Angelou for the exploitation of her work product in the area of greeting cards, stationery, calendars, etc as per the contract executed by BLP and Dr. Angelou dated November 22, 1994 which is still in full force and effect.” Letter of Maya Angelou and B. Lewis Productions to Hallmark Cards, Inc. (June 19,1996).

B. Lewis Productions and Hallmark subsequently produced a draft license agreement, which specified that it would last from March 1, 1997 to December 31, 2000, and would have provided Angelou with a $50,000 non-refundable advance. Angelou, however, upon being apprised of the situation, insisted that other concerns, including her son’s illness and her long-standing relationship with Random House, prevented her from entering into the arrangement at that time. Her view of Butch Lewis himself also appears to have soured during this period, after an alleged embarrassing incident at a reception in Las Vegas, and Angelou claims to have verbally informed Lewis that she no longer wished to pursue a business relationship with him.

In 1999, another individual at Hallmark was apprised by a third party that Angelou might, in fact, be interested in pursuing a relationship with the card company. Although this person knew of the earlier contacts with B. Lewis Productions, she did not attempt to work through B. Lewis Productions, stating instead that “dealing with Lewis had caused ‘a tidal wave of angst.’ ” A plan was developed according to which Hallmark would not have to deal with B. Lewis Productions; as a result, Angelou sent a letter to Butch Lewis on June 16, 1999, terminating their relationship. In June 2000, after further negotiations, Angelou finally entered into a licensing agreement with Hallmark, which guarantees her an advance of one million dollars and a sliding scale of licensing fees.

On January 22, 2001, B. Lewis Productions filed suit in the Southern District of New York against both Angelou and Hallmark Cards, alleging, against Angelou, breach of fiduciary duty arising out of the supposed joint venture agreement, and breach of the implied obligation of good faith and fair dealing contained in the Letter Agreement. The plaintiff also alleged, against Hallmark, tortious interference with contract and aiding and abetting a breach of fiduciary duty. The plaintiff requested damages in the amount of $10,000,000 from both Angelou and Hallmark. Angelou counterclaimed, alleging fraud and unilateral mistake against Butch Lewis and B. Lewis Productions on the theory that Butch Lewis had misled her into believing that Robert Brown had approved the Letter Agreement.

The district court granted summary judgment on all claims, determining that the Letter Agreement lacked certain terms essential to creating a joint venture under either New York or North Carolina law, and, therefore, that B. Lewis Productions’ suits against both Angelou and Hallmark must fail. The court below also held that the facts could not support Angelou’s counterclaims for fraud and unilateral mistake because, given the plain language of [297]*297the agreement, any reliance on Butch Lewis’s alleged misrepresentations was not reasonable. This appeal followed.

In an appeal from a district court’s grant of summary judgment, we review “the record de novo to determine whether genuine issues of material fact exist requiring a trial.” Morales v. Quintel Entm’t, Inc., 249 F.3d 115, 121 (2d Cir. 2001). We will affirm only “if there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law.” Metro. Life Ins. Co. v. Bigelow, 283 F.3d 436, 440 (2d Cir.2002).

We hold, largely for the reasons stated by the district court, that the Letter Agreement did not, in fact, create a joint venture, and, by extension, B. Lewis Productions cannot recover against Hallmark on a theory of substantial assistance in breach of fiduciary duty. We also concur in the district court’s determination that Angelou’s reliance on the representations that she claims Butch Lewis made about the letter agreement were not justifiable, as a matter of law, and her counterclaims of fraud and unilateral mistake must therefore also fail.

The district court did not, however, consider whether the Letter Agreement formed a contract other than a formal joint venture or exclusive agency agreement. The New York courts, at least, have indicated in other contexts that parties are not limited by the label they used in describing their agreement. See City of New York v. Penn. R.R. Co., 37 N.Y.2d 298, 372 N.Y.S.2d 56, 333 N.E.2d 361, 362 (1975); Richmond Children’s Ctr., Inc. v. Fireman’s Fund Ins. Cos., 128 A.D.2d 849, 513 N.Y.S.2d 769, 770 (1987).1 B. Lewis Productions never explicitly argued on the motion for summary judgment that the Letter Agreement should be enforced as a simple contract if found unenforceable as a joint venture.

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Bluebook (online)
99 F. App'x 294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-lewis-productions-inc-v-angelou-ca2-2004.