Christus Gardens, Inc. v. Baker, Donelson, Bearman & Caldwell

205 S.W.3d 917, 2006 Tenn. App. LEXIS 247
CourtCourt of Appeals of Tennessee
DecidedApril 18, 2006
StatusPublished

This text of 205 S.W.3d 917 (Christus Gardens, Inc. v. Baker, Donelson, Bearman & Caldwell) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christus Gardens, Inc. v. Baker, Donelson, Bearman & Caldwell, 205 S.W.3d 917, 2006 Tenn. App. LEXIS 247 (Tenn. Ct. App. 2006).

Opinion

OPINION

WILLIAM B. CAIN, J.,

delivered the opinion of the court,

in which PATRICIA J. COTTRELL and FRANK G. CLEMENT, JR., JJ„ joined.

This interlocutory appeal involves a client’s malpractice claim against a law firm and attorney as a result of the attorney’s failure to file a timely notice of appeal in a federal copyright case. The trial court denied the law firm’s Motion for Summary Judgment as to Causation, finding that the appeal would have been successful had counsel filed a timely notice. We granted interlocutory appeal to determine as a matter of law whether the appeal would have been successful. We affirm the judgment of the trial court.

Baker, Donelson, Bearman and Caldwell, P.C. and Stephen G. Anderson (“Baker Donelson”) bring this appeal from the trial court’s denial of Baker Donelson’s Motion For Final Judgment on Issue of Causation, which it filed challenging Chris-tus Gardens’ claim for malpractice. The alleged malpractice occurred when Baker Donelson, while defending Christus Gardens’ in a federal copyright action, failed to file a timely notice of appeal. In denying Baker Donelson’s motion, the trial court also granted a Motion for Interlocutory Appeal pursuant to Tennessee Rule of Appellate Procedure 9. We likewise granted the interlocutory appeal to determine “whether Christus Gardens would have prevailed on appeal in the copyright case had a timely notice of appeal been filed.” The notice would have set in motion Chris-tus Gardens’ second appeal in the copyright infringement action brought by Ronald Cotter (“Mr.Cotter”). Mr. Cotter filed suit against Christus Gardens alleging several instances of copyright infringement and seeking both statutory and actual damages. 1

Christus Gardens operates a tourist attraction in Gatlinburg, Tennessee. The attraction’s centerpiece is a six ton marble sculpture depicting the face of Christ and known as the “Christus Stone.” In 1986, Mr. Cotter created a book-end size sculp *919 ture inspired by the “Christus Stone.” Mr. Cotter did not register a copyright for his sculpture until August 10, 1992; however, prior to that time he had offered his work to Christus Gardens for resale to the public in its gift shop. As the sixth circuit opinion relates:

During three different periods — before August 1992 (hereinafter “candle sales”), from May to August in 1996 (hereinafter “Wo-Di sales”), and in September 1996 (hereinafter “Leon Molds sales”) — Christus sold items that may have been copied from Cotter’s work. During the candle sales before 1992, Christus sold wax candles in its shop with an impression of the face in the Christus stone similar to Cotter’s work. Cotter asked Christus to stop selling them and Christus complied. Following the incident, Cotter registered his work with the Register of Copyrights on August 10, 1992. On August 17, 1992, he was issued Registration No. VA-538-843 for the work he created called “Miracle Face.”
During the Wo-Di sales in the summer of 1996, Joe Waggoner (“Waggoner”), the manager of Christus, approached Wo-Di Manufacturing, Inc. about producing a small likeness of the Christus stone. Christus subsequently sold this Wo-Di replica alongside Cotter’s in 1996. Cotter complained to Christus and then contacted Wo-Di, who agreed to stop making replicas. Finally, during the Leon’s Molds sales in 1996, Christus began to sell ceramic pieces made by Leon’s Molds that were similar to Cotter’s work. Cotter again complained to Christus and contacted Leon’s Molds, who also agreed to stop making the replicas.
Following the Leon’s Molds sales Cotter filed this copyright infringement action against Christus on March 10, 1997. He sought an injunction and both actual and statutory damages for the infringement, which he originally alleged had begun with the candle sales prior to his copyright registration. Cotter later amended his complaint to omit any reference to the pre-registration candle sales. Cotter made this amendment to preserve his right to elect statutory damages under the Copyright Act, which are only allowed for infringements that commenced after the effective date of the copyright registration. See 17 U.S.C. § 412.

Cotter v. Christus Gardens, No.99-5996, 238 F.3d 420 (Table), 2000 WL 1871698 at *1 (6th Cir. Dec.12, 2000) (footnote omitted).

After the amendment, the Judge to whom the case was originally assigned granted Christus Gardens’ motion for partial summary judgment on the statutory damages claim. After several procedural actions and including the substitution of a different trial judge, the summary judgment motion was withdrawn and the case submitted to a jury on both actual and statutory damages claims. In order to recover the statutory remedy for willful infringement, Mr. Cotter was required to show a continued infringement of a known registered copyright. 17 U.S.C. §§ 412, 504. In the absence of said proof, Mr. Cotter was free to pursue the actual damages remedy of section 504; however, this section required Mr. Cotter to make an affirmative election as to whether he would pursue the actual damages course or proceed with the statutory remedy. No such election was made, and the case was tried by a jury on both the actual and statutory claims. After consideration, the jury awarded $153,000 in actual damages and *920 awarded $100,000 statutory damages for willful infringement.

Christus Gardens moved for a new trial, or, in the alternative for judgment as a matter of law pursuant to Federal Rules of Civil Procedure Rule 50. The trial court denied the motion, and Christus Gardens appealed to challenge the validity of the actual damage award as well as the award of statutory damages. The Sixth Circuit reversed the award of actual damages and held that the jury had been allowed to consider Cotter’s lost profits in this assessment contrary to the provision of section 17 USC section 504. The Court of Appeals held that, in light of the improper verdict, the refusal to grant a new trial amounted to an abuse of discretion. Nevertheless, the court affirmed the submission of the statutory damages claim to the jury. Baker Donelson petitioned on behalf of Christus Gardens for en banc review of the decision. The petition was denied and the cause remanded to the district court. Upon remand, Mr. Cotter elected statutory damages. Instead of conducting a new jury trial, the district court entered judgment in favor of Mr. Cotter for $100,000 in statutory damages. Christus Gardens challenged the trial court’s action and asked that Baker Donelson perfect it’s appeal by filing a notice of appeal. It is undisputed that, despite Baker Donelson’s initial statements to their client to the contrary, a notice of appeal was never filed from the proceedings on remand.

After being forced to pay the statutory damages and attorney’s fee, Christus Gardens filed its complaint against Baker Do-nelson in Davidson County Circuit Court, alleging in pertinent part that the failure to file the notice of appeal constituted malpractice.

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Bluebook (online)
205 S.W.3d 917, 2006 Tenn. App. LEXIS 247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christus-gardens-inc-v-baker-donelson-bearman-caldwell-tennctapp-2006.