Briarpatch Limited, L.P., Gerard F. Rubin v. Phoenix Pictures, Inc., Michael Medavoy, Geisler Roberdeau, Inc., Terence Malick

373 F.3d 296, 2004 U.S. App. LEXIS 12847, 2004 WL 1418115
CourtCourt of Appeals for the Second Circuit
DecidedJune 25, 2004
Docket03-7015
StatusPublished
Cited by505 cases

This text of 373 F.3d 296 (Briarpatch Limited, L.P., Gerard F. Rubin v. Phoenix Pictures, Inc., Michael Medavoy, Geisler Roberdeau, Inc., Terence Malick) 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
Briarpatch Limited, L.P., Gerard F. Rubin v. Phoenix Pictures, Inc., Michael Medavoy, Geisler Roberdeau, Inc., Terence Malick, 373 F.3d 296, 2004 U.S. App. LEXIS 12847, 2004 WL 1418115 (2d Cir. 2004).

Opinion

CARDAMONE, Circuit Judge.

Because this appeal involves the rights to films and plays, it is appropriate and helpful to begin by listing the cast of characters. Plaintiff Briarpatch Limited, L.P. (Briarpatch) is a limited partnership; *300 plaintiff Gerard F. Rubin is the sole limited and winding up partner of Briarpatch. Defendant Geisler Roberdeau, Inc. is a dissolved New York corporation owned and controlled by Robert Geisler and John Roberdeau. Defendant Phoenix Pictures, Inc. (Phoenix) is a producer of motion pictures; defendant Morris Medavoy (not “Michael” as is incorrectly listed in the caption) is the founder and chairman of Phoenix. Defendant Terrence Malick (not “Terence” as is incorrectly listed in the caption) is a writer and director of films including “The Thin Red Line.”

As this case illustrates, chicanery is no stranger to some of those engaged in the film industry. This litigation centers on Rubin’s contention that Geisler and Rober-deau conned him and Briarpatch out of proceeds from “The Thin Red Line” and various other motion picture and theater productions. Rubin claims they did this in concert with Phoenix, Medavoy, and Mal-ick, and that they used Geisler Roberdeau, Inc. as a conduit for their ill-gotten gains.

BACKGROUND

Briarpatch, the limited partnership, was formed in 1994 to develop, produce, present, and exploit various entertainment related projects. While Rubin was the sole limited partner, there were five general partners that, under the partnership agreement, had “complete, exclusive and unqualified control of all aspects of the business of the [partnership,” and the “unrestricted right to sell or assign, and to pledge, mortgage or otherwise hypothe-cate, any [of the partnership’s projects], either in whole or in part, without obtaining the consent of Rubin.” All five general partners were corporations owned and controlled by Robert Geisler and John Ro-berdeau, meaning that those two individuals had complete control over Briarpatch’s business. All the general partner corporations are presently dissolved and Rubin, as noted, is now the designated winding up partner for Briarpatch. Defendant Geisler Roberdeau, Inc. is also owned and controlled by Geisler and Roberdeau, but it is not connected to Briarpatch.

Rubin claims to have contributed more than $6 million of his own funds towards Briarpatch’s entertainment projects, with the expectation that he would reap the rewards (in the form of partnership distributions) if the projects were successful. One of the projects was to culminate in a motion picture called “The Thin Red Line,” based on an existing novel by James Jones. The partnership used Rubin’s money to acquire the motion picture rights to “The Thin Red Line,” and to pay defendant Malick to turn the novel into a screenplay.

Before this project could be completed, Geisler and Roberdeau purported to sell the rights to “The Thin Red Line” to defendant Phoenix. Instead of distributing the proceeds from this sale among Briarpatch’s partners, Geisler and Rober-deau kept the proceeds for themselves in the accounts of their personal corporation, Geisler Roberdeau, Inc. After the sale, Phoenix oversaw the completion of “The Thin Red Line” motion picture, and earned a substantial profit from it. The movie was nominated for seven Academy Awards.

In December 1998 Rubin and Briarpatch sued Geisler and Roberdeau in New York State Supreme Court, stating causes of action for fraud and fraudulent concealment, breach of fiduciary duty, conversion and trover, unjust enrichment, and an accounting. Plaintiffs alleged Geisler and Roberdeau had used their control over Briarpatch to divert to themselves benefits and opportunities generated by Briar-patch’s entertainment projects, including “The Thin Red Line.”

*301 After a trial, the state court granted plaintiffs a declaratory judgment, constructive trust, and an equitable lien with respect to Briarpatch’s entertainment projects. The state court decision dated July 12, 1999 found that “The Thin Red Line,” and certain other projects, were owned by the plaintiff partnership and did not belong to Geisler, Roberdeau, their affiliated corporations, or the Briarpateh general partners. The court granted plaintiffs a judgment for the $1.5 million that Geisler and Roberdeau had converted from the proceeds paid to them by Phoenix for “The Thin Red Line,” and a permanent injunction directing, among other things, that Geisler and Roberdeau turn over all of Briarpatch’s property to Briarpateh and provide an accounting. , The New York Supreme Court entered judgment on this decision on October 14, 1999 and ordered that a referee be assigned to monitor the turning over of property and the accounting. Geisler and Roberdeau appealed this judgment in 1999 and that appeal is apparently still pending.

Plaintiffs commenced the present action in the New York Supreme Court on August 18, 1999. They asserted claims against defendants Malick, Phoenix, Meda-voy, and Geisler Roberdeau, Inc. for conspiring in and aiding and abetting Geisler and Roberdeau’s breach of fiduciary duty to Briarpateh. Plaintiffs also brought claims against Geisler Roberdeau, Inc. for trover and conversion, and unjust enrichment; against Phoenix for unjust enrichment and a declaration of rights; and against Malick for breach of contract, unjust enrichment, and a declaration of rights. Plaintiffs sought over $4 million in damages.

Defendants responded by removing the suit to the United States District Court for the Southern District of New York (Sweet, J.) on September 10, 1999. Plaintiffs then moved pursuant tó 28 U.S.C. § 1447(c) to remand the action to State Supreme Court. The district court denied the motion and dismissed the claims against the only non-diverse party, Geisler Roberdeau, Inc., in an opinion and order dated March 1, 2000. On June 26, 2001, the district court denied plaintiffs leave to amend their complaint to add additional parties, and on November 6, 2001, it dismissed the claims ágainst Malick based on his settlement with plaintiffs.' Finally, the district court granted summary judgment in favor of Phoenix and Medavoy on October 30, 2002. With no claims remaining, it entered a judgment dismissing the complaint in its entirety on December 9, 2002. From this judgment and these orders plaintiffs appeal.

DISCUSSION

Plaintiffs have presented two challenges for us to resolve on this appeal: first, the denial of their motion to have the case remanded to the New York State Supreme Court and, second, the district court’s grant of summary judgment in favor of defendants Phoenix and Medavoy. We note plaintiffs also purport to challenge the denial of their motion to amend their complaint. But, since this issue is only mentioned in the beginning of their brief and never argued or noted again, we deem it abandoned. See, e.g., Smalls v. Batista, 191 F.3d 272, 277 (2d Cir.1999).

We start with the remand motion. Mindful that a district court’s erroneous failure to remand does not, by itself, necessitate reversal, we view the critical issue to be whether the district court had subject matter jurisdiction at any time before it rendered judgment. See Caterpillar Inc. v. Lewis,

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Bluebook (online)
373 F.3d 296, 2004 U.S. App. LEXIS 12847, 2004 WL 1418115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/briarpatch-limited-lp-gerard-f-rubin-v-phoenix-pictures-inc-ca2-2004.