Burke v. Lewis Investment Company of Nevada, LLC

District Court, D. Nevada·Decided February 5, 2025·No. 3:23-cv-00184·Unknown

Opinion

* * *

DONALD J. BURKE, et al., Case No. 3:23-cv-00184-MMD-CSD

Plaintiffs, ORDER v. LEWIS INVESTMENT COMPANY OF NEVADA, LLC, et al.,

Defendants.

Plaintiffs Donald J. Burke (“Burke Sr.”) and Donald W. Burke (“Burke Jr.”) sued Defendants Lewis Investment Company of Nevada, LLC (“Lewis”), Kiley Ranch Six Apartments, LLC, and Luke Dragovich for alleged copyright infringement and unjust enrichment regarding the development of an apartment complex known as Kiley Ranch in Sparks, Nevada that allegedly infringed on copyrighted architectural plans developed by Plaintiffs. (ECF No. 1.) Defendants counterclaimed that Plaintiffs’ copyrights are invalid and not infringed by Kiley Ranch. (ECF No. 11 at 8-11.) Before the Court are Defendants’ motions to exclude Burke Sr.’s expert testimony (ECF No. 28) and for summary judgment (ECF No. 39 (“Motion”)), along with some related motions to seal (ECF Nos. 33, 48, 60).1 Because Plaintiffs waited too long to file this lawsuit, an agreement between an organization they used to work for and Lewis precludes their copyright and unjust 1The Court has also reviewed the corresponding responses and replies. (ECF Nos. 38, 52, 54, 59.) Plaintiffs did not respond to any of Defendants’ motions to seal. Plaintiffs also submitted some sealed documents in a manner noncompliant with the Court’s Local Rules and the protective order in this case. The Court addresses that noncompliance along with the motions to seal in this order. In addition, Defendants requested oral argument on their motion for summary judgment. (ECF No. 39 at 1.) The Court declines their request because it finds oral argument unnecessary. See LR 78-1 (“All motions may Motion, deny their motion to exclude expert testimony as moot, and grant them limited declaratory relief consistent with the Court’s other findings in this order. The following facts are undisputed unless otherwise noted. Lewis develops and manages apartment buildings. (ECF No. 49-1 (sealed) at 3.) Kiley Ranch Six Apartments, LLC is a special purpose entity formed by Lewis to develop a residential apartment complex in Sparks, Nevada, known as Homecoming at Kiley Ranch (the “Kiley Ranch Project”). (Id.) Dragovich is an in-house engineer and architect for Lewis who used to work with Plaintiffs. (Id.; ECF No. 55-1 (sealed) at 5.) Burke Sr. is an architect and Burke Jr. is a computer operator who helps his father prepare architectural documents. (ECF No. 1 at 3.) In 2011, 2015, and 2017, Plaintiffs registered three copyrights in multifamily apartment building designs. (ECF Nos. 40-5 at 2, 40-6 at 2, 41-6 at 2.) Meanwhile, as pertinent here, Burke Sr. formed a company with William D. Pennington and John Burkett called Pacific West Design-Build Services, LLC (“Pac West”) in 2016. (ECF No. 42-1 at 3.) Pac West and Lewis-affiliated companies worked together between 2016 and 2019. (ECF No. 49-1 (sealed) at 4.) Pac West and Lewis formalized their relationship by signing the Master Consultant Agreement for Design Build Services dated June 16, 2016 (the “MCA”). (ECF No. 49-3 (sealed) at 2; see also ECF No. 49-1 (sealed) at 4.) The MCA contains a key ownership term that is the subject of further discussion below. (ECF No. 49-3 (sealed) at 7-8.) And as also further discussed below, Pac West and Lewis subsequently entered into several other agreements. Pac West dissolved in 2019. (ECF No. 42-16; see also ECF No. 55-1 (sealed) at 3 (stating he was terminated by Pac West in 2019).) Lewis then retained Integrated Design Build Solutions (“IDBS”) to continue design of the Kiley Ranch Project. (ECF No. 49-1 (sealed) at 6.) Lewis’ affiliate Pioneer Parkway Holding Company, LLC entered into any plans or drawings along with any corresponding intangible property. (Id. at 6; see also ECF No. 49-11 at 7-8.) Defendant Kiley Ranch Six Apartments, LLC later entered into a ‘short form’ agreement that incorporated by reference the master consulting agreement between Pioneer Parkway Holding Company, LLC and IDBS, but did not supersede or modify the ownership term. (ECF No. 49-12.) In November 2019, Plaintiffs sued Pacific West Contractors of California, Inc., Pacific West Contractors of Nevada, IDBS, Pacific West Service Company, Pacific West Companies, LLC, Pacific West Operations, LLC, and Pacific West Operating Group, LLC, alleging infringement of the same copyright registrations at issue here. See Burke et al. v. Pacific West Contractors of California, Inc. et al., Case No. 3:19-cv-00687-MMD-WGC, at ECF No. 1 (D. Nev. Filed Nov. 15, 2019) (“Pacific West Contractors”). Plaintiffs did not sue Lewis or its affiliated entities in that case. See id. Eventually, Lewis hired Dragovich and completed the plans for the Kiley Ranch Project in-house with his help. (ECF No. 49-1 (sealed) at 7.) Lewis received approval for the Kiley Ranch Project in 2022 and began construction that year as well. (Id. at 7-8.) Plaintiffs sent Demir (“Ted”) Erkan, a senior employee of Lewis and its affiliates, a demand letter alleging that the Kiley Ranch Project infringed their copyrights in September 2022. (Id. at 8; see also ECF No. 46-5.) Plaintiffs filed this lawsuit on May 3, 2023. (ECF No. 1.) The Court begins by addressing the pending motions to seal and the related issue of how Plaintiffs filed sealed documents. The Court then addresses some of the dispositive arguments raised in Defendants’ Motion. Because the Court finds Defendants are entitled to summary judgment, the Court denies their motion to exclude Burke Sr.’s expert testimony (ECF No. 28) as moot. A. Sealed Documents Defendants move to file some exhibits to their pending motions under seal, along with seeking permission to redact portions of their briefs that quote or refer directly to (regarding the Motion), 59 (regarding the reply filed in support of the Motion).) As noted, Plaintiffs did not oppose these motions. The Court finds the pending motions dispositive; a motion for summary judgment is obviously so, and the other motion seeks exclusion of expert testimony from a party witness, which could be dispositive. Thus, to overcome the strong presumption in favor of public access, Defendants must make particularized showings as to why these exhibits should be sealed and provide compelling reasons, supported by specific factual findings, for their request. See Kamakana v. City & Cty. of Honolulu, 447 F.3d 1172, 1178 (9th Cir. 2006); Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 678 (9th Cir. 2010). In general, compelling reasons for sealing exist when court records might become a vehicle for improper purposes, such as “to gratify private spite, promote public scandal, circulate libelous statements, or release trade secrets.” Demaree v. Pederson, 887 F.3d 870, 884 (9th Cir. 2018) (quoting Kamakana, 447 F.3d at 1179). Applying these standards, the Court will grant Defendants’ motions to seal in part and deny them in part. The motions are denied to the extent Defendants seek to keep under seal the key ownership provision in the MCA. Defendants disclose the key elements of this term in the unredacted text surrounding the redaction of the term itself. (See, e.g., ECF No. 39 at 8.) It is illogical for Defendants to disclose and rely upon key elements of this term while seeking to keep the term itself redacted. Moreover, because the Court finds this term material to resolution of this case, the public interest in disclosing it is heightened. In addition, the fact that Lewis often negotiates for ownership of architectural plans it purchases along with the corresponding intangible rights to those plans is not a trade secret. As noted, Defendants revealed that fact in their unredacted briefing. Finally, the mere fact that information is subject to a protective order does not, standing alone, constitute good cause for filing that information under seal. See Heath v. Tristar Prod., Inc., Case No. 2:17-cv-02

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Burke v. Lewis Investment Company of Nevada, LLC, (D. Nev. 2025).

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