Big Ligas, LLC v. Yu

CourtDistrict Court, S.D. Florida
DecidedApril 15, 2021
Docket1:20-cv-23719
StatusUnknown

This text of Big Ligas, LLC v. Yu (Big Ligas, LLC v. Yu) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Big Ligas, LLC v. Yu, (S.D. Fla. 2021).

Opinion

United States District Court for the Southern District of Florida

Big Ligas, LLC, Plaintiff, ) ) v. ) Civil Action No. 20-23719-Civ-Scola ) Helen Yu, Defendant. )

Omnibus Order This matter is before the Court upon the Defendant’s motion to dismiss and the Plaintiff’s motion to strike certain portions of the Defendant’s reply in further support of her motion to dismiss. On April 7, 2021, the Defendant filed a notice with the Court indicating she no longer wished to contest this Court’s jurisdiction or the question of whether venue was proper in the Southern District of Florida, and therefore, the Court does not reach these arguments as they have been withdrawn without any opposition from the Plaintiff. For the reasons stated below, the Court grants the Defendant’s motion to dismiss. (ECF No. 17.) 1. Background The Plaintiff, Big Ligas, LLC (“Big Ligas”) is a Florida limited liability company, with three members, each of whom own one-third of the shares in the Company. The members are Daniel Echavarria, also known as Ovy; Christian Andres Salazar; and Paulo Londra. Ovy and Salazar are the managing members of Big Ligas. (ECF No. 11, at ¶ 1.) The Defendant, Helen Yu, is an entertainment attorney who represents Paulo Londra. (ECF No. 11, at ¶ 2; ECF No. 17, at 1.) Paulo Londra is an Argentinian “rapper and reggaeton/trap singer.” (ECF No. 11, at ¶ 7.) In 2017, Londra was introduced to Ovy and Salazar who decided to help Londra launch his career as a singer and songwriter. (ECF No. 11, at ¶¶ 8-10.) Accordingly, on February 21, 2018, Londra, Ovy, and Salazar entered into a “Deal Memorandum”, which the Plaintiff provided as Exhibit A to its complaint. (ECF No. 11-1.)1 Pursuant to this agreement, the parties agreed to “foster and pursue the development and commercial exploitation of [Londra’s] Services and Works” where “Services” is defined to mean Londra’s

1 The Court may consider exhibits attached to the complaint at the motion to dismiss stage. See Gill as Next Friend of K.C.R. v. Judd, 941 F.3d 504, 511 (11th Cir. 2019) (“The Civil Rules provide that an attachment to a complaint generally becomes ‘part of the pleading for all purposes,’ including for a ruling on a motion to dismiss.”) (quoting Fed. R. Civ. P. 10(c)). work “as an entertainer, recording artist, songwriter, live performer, celebrity and public figure” and “Works” is defined to mean “musical compositions, recordings, performances, endorsements, sponsorships and other uses of [Londra’s] name and likeness in connection therewith.” (Id.) The Plaintiff alleges that pursuant to this agreement, Londra agreed to provide his “exclusive services to [Big Ligas]” during the “Term and throughout the Territory” of the agreement. (Id.) The term of the agreement was to extend for a period of three years, and then automatically renew for a period of one year unless Londra, Salazar or Ovy informed the other members of Big Ligas of their desire to end the term. (Id.) However, if during term of the agreement Big Ligas entered into an “exclusive recording agreement with a Major Label” Londra could not terminate the “Term” of the agreement until six months following the expiration of any such deal. (Id.) The “Territory” of the Deal Memorandum is “the universe.” (Id.) Finally, the Deal Memorandum purports to make Big Ligas the owner of all “Works and copyrights and all other neighboring and intellectual property rights therein” including “pre-existing Works” in perpetuity. (Id.) Under the Deal Memorandum, Ovy and Salazar were designated as Big Ligas’s “managing member[s] or executive officer[s] . . . with exclusive authority to sign agreements and otherwise act on its behalf” including the authority to enter into “recording agreements with third party record labels.” (Id.) Under the Deal Memorandum, certain aspects of Londra’s relationship with Big Ligas required mutual assent and approval of all parties. (Id.) Londra also executed a “Songwriter Agreement” with Big Ligas pursuant to which he agreed to render his exclusive services to Big Ligas for a term that would be coterminous with the Deal Memorandum. (Id.) Following the release of several hits, in the spring of 2018 Big Ligas began discussions with several record labels and music publishing companies, including Warner, Sony Music Latin, and Universal Music Latin Entertainment, regarding Paulo’s singing and songwriting services. (ECF No. 11, at ¶¶ 28-29.) Big Ligas pursued an offer from Warner, and in November 2018, Big Ligas and Londra discussed Warner’s offer. (Id. at ¶ 30.) On December 11, 2018, Big Ligas entered into a “Recording License Agreement” with Warner pursuant to which Londra would record his first album. (Id. at ¶ 32.) The Plaintiff notes that this agreement was executed by Warner and Big Ligas because the Deal Memorandum “gives Big Ligas the exclusive right to Paulo’s recording services.” (Id.) On May 23, 2019, Londra released his debut album, Homerun, ranking number 10 on the Billboard Latin Rhythm Albums chart. (Id. at ¶¶ 33-34.) Warner and Big Ligas entered into a “Second Album Amendment” for a second album, with Big Ligas and Warner as signatories. (Id. at ¶ 35.) In the spring of 2019, Big Ligas began pursuing a deal “with major music publishers,” resulting in offers from several publishers, including Kobalt Music Publishing (“Kobalt”). (Id. at ¶¶ 36-37.) As with the Warner agreements, any agreement with Kobalt would be signed Big Ligas and Kobalt. (Id. at ¶ 36.) Turning to the meat of the instant dispute, in 2019, amidst negotiations with Kobalt and with Warner regarding Londra’s second album, Londra hired Helen Yu as his attorney. (Id. at ¶ 39.) The Plaintiff states Ms. Yu has acted in bad faith by excluding Big Ligas from certain deals “by falsely claiming that only she had the authority to negotiate for Paulo and that big Ligas did not” and that she “falsely claimed that she and/or Paulo owned the copyrights that are in fact owned by Big Ligas.” (Id. at ¶ 45.) According to the Plaintiff, Ms. Yu begin interfering with Big Ligas’s contractual rights for “her own pecuniary benefit as well as for Paulo’s” and that this was “done purposefully to harm Big Ligas,” including by depriving Big Ligas of its right to enter into third-party agreements with record labels and publishers for Londra’s services (Id. at ¶¶ 40-41.) For example, Big Ligas states that in December 2019, Yu contacted Warner to negotiate an extension of Big Ligas’s agreement with Warner, which Big Ligas says only it had a right to do, and falsely stated that Big Ligas did not have the authority to negotiate or handle any agreements for Londra. (Id. at ¶ 42.) Big Ligas also states that Ms. Yu tried to replace Big Ligas’s agreement with Warner pursuant to which Londra would record a second album. (Id.) Big Ligas claims that because of Yu’s interference, the agreement ultimately entered into between Big Ligas and Warner in March 2020 was less beneficial to Big Ligas than it otherwise would have been. (Id. at ¶ 43.) Big Ligas also states that Ms. Yu interfered with its relationship with Kobalt. (Id. at ¶ 44.) Big Ligas states that after it had obtained an offer from Kobalt, Ms. Yu “unilaterally sen[t] Kobalt a counterproposal in November 2019—excluding Big Ligas entirely from the negotiations” and “instructed Kobalt not to enter into an agreement with Big Ligas” which ultimately prevented Big Ligas and Kobalt from entering into an administration deal. (Id.) As part of her interference, Big Ligas contends that Ms. Yu has falsely represented that she was authorized to deliver Londra’s “recording artist and songwriting services . . .

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Big Ligas, LLC v. Yu, Counsel Stack Legal Research, https://law.counselstack.com/opinion/big-ligas-llc-v-yu-flsd-2021.