Bounty-Full Entertainment, Inc. v. Forever Blue Entertainment Group, Inc.

923 F. Supp. 950, 1996 U.S. Dist. LEXIS 5498, 1996 WL 203147
CourtDistrict Court, S.D. Texas
DecidedApril 1, 1996
DocketCivil Action H-96-0196
StatusPublished
Cited by15 cases

This text of 923 F. Supp. 950 (Bounty-Full Entertainment, Inc. v. Forever Blue Entertainment Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bounty-Full Entertainment, Inc. v. Forever Blue Entertainment Group, Inc., 923 F. Supp. 950, 1996 U.S. Dist. LEXIS 5498, 1996 WL 203147 (S.D. Tex. 1996).

Opinion

ORDER VACATING PREVIOUS ORDER OF DISMISSAL AND SUBSTITUTING ORDER DENYING MOTIONS TO DISMISS

HOYT, District Judge.

This is an action for the state law claims of libel, defamation, and tortious interference with existing and prospective business relations brought by the plaintiffs, Bounty-Full Entertainment, Inc., as General Partner of ABH Partners, Ltd. (“Bounty-Full”), Andrew Mears, and Rod Mitchell against the defendants, Forever Blue Entertainment Group, Inc. (“Forever Blue”), Tradewinds Television LLC (“Tradewinds”), Action Media Group (“AMG”), Manatt, Phelps, Phillips, a Law Partnership including Professional Corporations (“the Manatt Firm”), and, Jill M. Pietrini, Individually. This is also an action based upon federal law for a declaratory judgment that the plaintiffs did not infringe upon any copyright or trademark owned by the defendants, or commit any act of unfair competition.

Before the Court are the following motions: the defendants Tradewinds’ and AMG’s Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction; their Rule 12(b)(3) motion to dismiss for lack of proper venue, or, in the alternative, to transfer venue to the Central District of California, Western Division; and, their Rule 12(b)(6) motion to dismiss for failure to state a claim upon which relief may be granted. The Court, having considered the motions, the responses, the pleadings on file, and the applicable law, holds that the defendants’ 12(b)(2) motion to dismiss should be denied, that the defendants’ 12(b)(3) motion to dismiss should be denied, that the defendants’ motion to transfer venue should be denied, and that the defendants’ 12(b)(6) motion to dismiss should be denied.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

The plaintiff, Bounty-Full, and its owners and officers, Andrew Mears and Rod Mitchell, claim to have conceived of a reality-based television series featuring actual film footage and reenactments of captures of bail violators by private bail enforcement agents in the United States.

The plaintiffs contend that they were ready to commence the broadcasting of this new television series, called “American Bounty Hunters,” through the United Paramount Network (“UPN”) in March of 1996. However, upon gaining some knowledge of this fact, the defendants Tradewinds and AMG had their attorney Jill Pietrini with the Manatt Firm publish two letters, one of which was directed to UPN’s President Michael Sullivan and the other to a Debra Simon, who appears to be an independent contractor working for Bounty-Full. 1

These letters allege that: (1) Bounty-Full’s use of the name “American Bounty Hunters” violates a trademark held by Forever Blue, and (2) Bounty-Full’s television show concept violates a copyright also held by Forever Blue. These letters continue on indicating that the trademark and copyright were subsequently licensed to Tradewinds, and that AMG was to assist Tradewinds in producing a substantially similar television show to be called “Bounty Hunters.” The plaintiffs assert that upon receipt of this letter, UPN became somewhat less enthusiastic about airing the plaintiffs’ competing program. At this time, though, UPN is not a party to this lawsuit.

The merits of these claims are not before the Court this day. Rather, the thrust of the defendants’ motions goes solely to the circumstances surrounding the publishing of the letter to Simon who was and, apparently remains, a Houston resident. These letters were published on or about January 19,1996, and resulted in swift legal action on both sides.

On January 22, 1996, the plaintiffs filed suit against these defendants in the 11th *954 Judicial District Court of Harris County, Texas. This Court gained subject matter jurisdiction of the matter pursuant to a Notice of Removal filed the next day. On January 24,1996, the plaintiffs filed their Amended Complaint, and, on January 29, 1996, Tradewinds and AMG filed their motions to dismiss.

CONTENTIONS OF THE PARTIES

The plaintiffs allege that proper federal subject matter jurisdiction exists for both their federal and state claims. They also allege that valid personal jurisdiction over all of the defendants exists based upon (1) the act of sending the January 19,1996, letter to Houston resident Simon, whom they contend was working at that time on a contract basis for Bounty-Full as a television producer, and (2) the production of the plaintiffs’ television show in Houston. The plaintiffs assert the same bases for maintaining venue in the Southern District of Texas, Houston Division.

The defendants Tradewinds’ and AMG’s Rule 12(b)(2) motion to dismiss contests the plaintiffs’ bases for personal jurisdiction, stating that the constitutional requirements of due process mandate the suit’s dismissal. In this regard, they contend (and the plaintiffs do not appear to dispute) that every one of the defendants resides in California. These same defendants’ Rule 12(b)(3) motion to dismiss asserts that venue in the Southern District of Texas is improper, because a substantial part of the events or omissions giving rise to the plaintiffs’ claims did not occur in this judicial district. Finally, the defendants’ Rule 12(b)(6) motion to dismiss contends that the plaintiffs’ complaint states no claim upon which this Court may grant relief, in that the two letters sent by Pietrini were absolutely privileged communications "within the confines of a judicial proceeding.

DISCUSSION AND AUTHORITY

Subject Matter Jurisdiction

Although the defendants’ motions to dismiss do not appear to challenge subject matter jurisdiction, the Court determines that a discussion of the bases for the exercise of judicial power is necessary, given that the pleadings appear to reflect some confusion on this matter. Upon reviewing the pleadings and affidavits on file, the Court determines that proper diversity subject matter jurisdiction exists for all of the plaintiffs’ state law claims. Complete diversity appears to exist, and these state law claims appear to seek money damages in excess of the requisite jurisdictional amount. Accordingly, this Court properly sits in diversity over the state law claims for libel, defamation, and tortious interference with existing and prospective business relations. 28 U.S.C. § 1332 (1996).

In addition, this Court has proper federal question subject matter jurisdiction of the plaintiffs’ requests for relief pursuant to the Federal Declaratory Judgment Act. 28 U.S.C. § 2201 (1996). Pursuant to the claims joinder provisions of the Federal Rules of Civil Procedure, this Court may hear both claims simultaneously. Fed.R.Civ.P. 18(a).

Personal Jurisdiction

Turning to the arguments raised in the defendants’ Rule 12(b)(2) motion to dismiss, this Court first recognizes that in ruling on such a motion, the allegations of the complaint, except insofar as controverted by the defendants’ affidavit, must be taken as true. See Black v. Acme Markets, Inc.,

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923 F. Supp. 950, 1996 U.S. Dist. LEXIS 5498, 1996 WL 203147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bounty-full-entertainment-inc-v-forever-blue-entertainment-group-inc-txsd-1996.