Crispin v. Christian Audigier, Inc.

839 F. Supp. 2d 1086, 2011 WL 6961400, 2011 U.S. Dist. LEXIS 151150
CourtDistrict Court, C.D. California
DecidedDecember 12, 2011
DocketNo. CV 09-9509 ABC (JEMx)
StatusPublished
Cited by3 cases

This text of 839 F. Supp. 2d 1086 (Crispin v. Christian Audigier, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crispin v. Christian Audigier, Inc., 839 F. Supp. 2d 1086, 2011 WL 6961400, 2011 U.S. Dist. LEXIS 151150 (C.D. Cal. 2011).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART CROSS-DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

AUDREY B. COLLINS, Chief Judge.

Pending before the Court is Defendant Christian Audigier, Inc.’s (“CAI”) and Audigier Brand Management Group LLC’s (“ABMG”) (collectively, “Audigier” or “Audigier entities”) Motion for Summary Judgment as to all Cross-Claims Asserted by New Life, filed on June 6, 2011. Cross-claimants New Life Company LLC (“New Life”) filed an Opposition on October 17, 2011, and Audigier filed a Reply on October 24, 2011. The matter was heard on December 12, 2011. For the reasons set forth below, the Court GRANTS IN PART and DENIES IN PART the Motion.

I. BACKGROUND

Plaintiff Buckley Crispin sued the Audigier entities for copyright infringement, breach of contract, and several related claims arising from Audigier’s use of twelve pieces of Plaintiffs artwork (the “Artwork”) on various of its branded products. Specifically, Crispin, a professional tattoo artist, alleged that in the fall of 2005, he produced the Artwork for Audigier and granted Audigier a nonexclusive license to use the Artwork on its Christian Audigier line of apparel. Crispin contended that Audigier exceeded its limited license by using the Artwork on items other than apparel, such as on sex products, watches, dog accessories, and jewelry, and/or by sublicensing the Artwork without Plaintiffs express permission, all of which infringed Crispin’s copyrights. Crispin also contended that Audigier breached their contract by failing to include his seal on items bearing the Artwork. Crispin also sued a number of Audigier’s alleged sublicensees, including New Life, for copyright infringement for manufacturing and/or selling goods bearing the Artwork.

On December 23, 2010, New Life filed a Cross-Complaint against Audigier for fraud, negligent misrepresentation, equitable indemnification, implied indemnification, and breach of contract. New Life asserts that Audigier granted it a license to produce Audigier-branded condoms and other sex products bearing the Artwork. In their License Agreement, Audigier represented that it owned and controlled the intellectual property that it was licensing to New Life. New Life argues that in light of Crispin’s lawsuit against it for copyright infringement, Audigier’s warranty that it owned and controlled the copyrights was false. New Life asserts that it has suffered losses directly from Audigier’s misrepresentations and because of the resulting litigation. Because all of Crispin’s claims against New Life stem from the license Audigier granted to New Life, New Life also seeks equitable and implied indemnification from Audigier. New Life adds that Audigier has defended and indemnified every other licensee in the lawsuit except New Life. New Life also asserts that Audigier breached the License Agreement by unreasonably withholding approval of its designs.

In September 2011, Crispin settled with Audigier. As part of that settlement, in exchange for an undisclosed payment from Audigier, Crispin transferred the Artwork and the copyrights therein to Audigier and dismissed his complaint against all defendants, including New Life. This settlement did not resolve New Life’s cross-claim against Audigier.

Audigier seeks summary judgment against New Life on several grounds.

[1089]*1089First, Audigier contends that each of New Life’s claims is based on the allegation that Audigier did not have the right to sublicense Crispin’s Artwork. Audigier argues that all of New Life’s claims fail because it is undisputed that Audigier did possess the right to sublicense that Artwork. Second, Audigier contends that New Life’s fraud, misrepresentation, and contract claims (first, second, and fifth causes of action) fail because New Life cannot show that it suffered damages. Specifically, Audigier argues that any injuries New Life has suffered were caused by its own conduct because it produced the Audigier-branded condoms before obtaining certain approvals required by the License Agreement. Finally, Audigier argues that New Life’s causes of action for equitable and implied indemnification (third and fourth causes of action) are barred by federal law. New Life opposes each of Audigier’s grounds for judgment.

II. STANDARD

“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party has the burden of demonstrating the absence of a genuine issue of fact for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 256, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

Where the moving party bears the burden of persuasion at trial, the moving party must show that no reasonable trier of fact could find other than for the moving party. William W. Schwarzer, et al., California Practice Guide: Federal Civil Procedure Before Trial, § 14:124-127 (2001). The moving party’s burden extends to each element of the claim or claims on which it seeks summary judgment or summary adjudication. S. Cal. Gas Co. v. City of Santa Ana, 336 F.3d 885, 888 (9th Cir.2003) (“As the party with the burden of persuasion at trial, the [plaintiff] must establish ‘beyond controversy every essential element of its [ ] claim.’ ”); Schwarzer, supra, § 14:124-127.

Once the moving party satisfies its initial burden, “an adverse party may not rest upon the mere allegations or denials of the adverse party’s pleadings ... [T]he adverse party’s response ... must set forth specific facts showing that there is a genuine issue for trial.” Fed. R. Civ. Pro. 56(e); S. Cal. Gas Co., 336 F.3d at 888 (“[The non-moving party] can defeat summary judgment by demonstrating the evidence, taken as a whole, could lead a rational trier of fact to find in its favor.”) (citations omitted).

An issue of fact is genuine if it reasonably can be resolved in favor of either party. Anderson, 477 U.S. at 250-51, 106 S.Ct. 2505. “[A] district court is not entitled to weigh the evidence and resolve disputed underlying factual issues.” Chevron Corp. v. Pennzoil Co., 974 F.2d 1156, 1161 (9th Cir.1992). Rather, “the inferences to be drawn from the underlying facts ... must be viewed in the light most favorable to the party opposing the motion.” United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962). However, the court must view the evidence presented “through the prism of the substantive evidentiary burden.” Anderson, 477 U.S. at 254, 106 S.Ct. 2505.

But “mere disagreement or the bald assertion that a genuine issue of material fact exists” does not preclude summary judgment. Harper v. Wallingford, 877 F.2d 728, 731 (9th Cir.1989). The “existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported summary judgment motion; the requirement is that there be no genuine issue of material fact.” Anderson, 477 U.S. at 247-48, 106 S.Ct. 2505. The “opponent must do [1090]

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839 F. Supp. 2d 1086, 2011 WL 6961400, 2011 U.S. Dist. LEXIS 151150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crispin-v-christian-audigier-inc-cacd-2011.