CSM Investors, Inc. v. Everest Development, Ltd.

840 F. Supp. 1304, 30 U.S.P.Q. 2d (BNA) 1039, 1994 U.S. Dist. LEXIS 285, 1994 WL 7618
CourtDistrict Court, D. Minnesota
DecidedJanuary 11, 1994
DocketCiv. 4-92-785
StatusPublished
Cited by19 cases

This text of 840 F. Supp. 1304 (CSM Investors, Inc. v. Everest Development, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSM Investors, Inc. v. Everest Development, Ltd., 840 F. Supp. 1304, 30 U.S.P.Q. 2d (BNA) 1039, 1994 U.S. Dist. LEXIS 285, 1994 WL 7618 (mnd 1994).

Opinion

ORDER

DOTY, District Judge.

This matter is before the court on cross-motions for summary judgment. Defendant and third-party plaintiff Everest Development, Ltd. (“Everest”) seeks partial summary judgment on Count I of the counterclaim and third-party complaint which alleges copyright infringement. Plaintiffs CSM Investors, Inc. and James M. Cooperman and Associates Architects, Inc. and third-party defendant James M. Cooperman (collectively referred to as “plaintiffs”) seek summary judgment on their declaratory judgment claim and' all claims asserted by Everest in the counterclaim and third-party complaint. Based on a review of the file, record and proceedings herein, and for the reasons stated below, the court grants Everest’s motion and grants in part and denies in part the motions of plaintiffs.

BACKGROUND

CSM Investors, Inc. (“CSM”) and Everest Development Ltd. are Minnesota corporations which own and develop real estate. James M. Cooperman (“Cooperman”) is an architect and owner and president of James *1307 M. Cooperman and Associates Architects, Inc. In early 1991, the City of Roseville (“the City”) was willing to furnish a piece of property located at the southeast corner of Long Lake Road and County Road C in Roseville, Minnesota to a local developer willing to build an office showroom. It was a narrow site of approximately five acres and 215,000 square feet.

Everest hired Brian Johnson (“Johnson”) of the Dovolis, Johnson and Ruggieri architectural firm and the Putnam Consultants, P.A. (“Putnam”) engineering firm to prepare original drawings for an office showroom warehouse building for the site. Both Johnson and Putnam expended substantial time and resources to create architectural and engineering plans and designs for a building that maximized the usable space and was aesthetically pleasing. The plans were completed in April and May of 1991 and transferred to Everest for $6,000.

On July 17, 1991, Everest and the City entered into a detailed Development Agreement for the site. The agreement required construction of an office showroom with an aggregate floor space of at least 43,000 square feet. The agreement also contained several design standards. Everest submitted architectural and engineering plans and related materials to the City and the local Watershed District to obtain the necessary zoning approvals. The project required a special use permit because an office showroom warehouse was not a permitted use under the zoning code. The City was concerned about the visibility of roof top mechanical units and Everest prepared special drawings showing parapet screening of the units. After negotiating with city officials and the Watershed District and responding to their concerns, Everest obtained a special use permit for an office showroom warehouse.

Everest later elected not to develop the property because of potential hazardous waste problems and ceased development of the building prior to construction. Everest and the City agreed to terminate their development agreement on March 20, 1992. Everest’s plans for the project remained on file with the City of Roseville and were available for inspection by the public.

A real estate broker for the site contacted CSM concerning the project in the spring of 1992. CSM was interested in pursuing the project because of the financing offered by the City. When CSM met with city officials to discuss the project, the city officials said they wanted an office showroom constructed on the site in return for tax increment financing. The City provided CSM with a copy of the plans submitted by Everest and told CSM to keep development of the site as identical to the Everest project as possible.

CSM contacted Johnson and Putnam in March 1992 to purchase the right to use the Everest plans. CSM was informed that Everest owned all the rights to the plans. CSM then approached Everest to inquire about purchasing the plans. Everest told CSM that it could not use the plans without Everest’s consent. Everest indicated that the plans would be made available if CSM paid appropriate compensation. 1 CSM rejected Everest’s asking price and on April 6, 1992, retained James M. Cooperman and his architectural firm to design a building for the site. CSM gave Cooperman a copy of the Everest plans. Cooperman claims that the Everest plans were used for reference purposes only and were not examined in great detail.

On April 8, 1992, two days after being retained by CSM, Cooperman’s firm completed a preliminary site plan for an office showroom building. The draftsman stated that a two-day turn around was very fast and was the shortest time period he knew of for producing a site plan. The draftsman claims he only reviewed the Everest drawings for a few minutes. The proposed building complied with the City’s setback requirements although neither the draftsman or the architect hired by Cooperman had reviewed the re *1308 quirements. 2 CSM also produced a section drawing dated April 29, 1992, which was nearly identical to an Everest section drawing 'dated May 10, 1991. The project designation, building, trees, cars, lettering and numbering in CSM’s section drawing mirror the Everest drawing. The draftsman cannot recall where he got the information to prepare the section drawing.

On April 29, 1992, CSM and Cooperman met with city officials to discuss development of the site. City officials noted that the site plan and building proposed by CSM were almost identical to the building designed by Everest and approved by the City. 3 The City disliked CSM’s proposal that the rear of the building be concrete. City officials said they preferred Everest’s plan which called for a band of brick to extend from the front of the building to the rear of the building. The City told CSM to redesign its building and submit revised drawings.

On May 13, 1992, CSM wrote to the Watershed District to obtain watershed and drainage approval for the site. CSM stated that it had purchased the property from Everest and intended to build a business office center similar to the project proposed by Everest. 4 CSM submitted a proposed grading site plan which was prepared by an engineering firm that had been given copies of Everest’s Grading, Drainage and Utilities Plan. CSM provided the drawings to the Watershed District to obtain zoning approvals and certain permits necessary to enable it to construct the proposed building. CSM informed the Watershed District that:

CSM Corporation’s project is comparable to the Everest Group’s regarding building configuration, parking, drive areas and site entrances with a slight difference in building foot print and an increase in the floor elevation height by 2 feet. The grade elevation [sic] have changed slightly on the North side, otherwise all grade elevations, berms, retaining walls, ponding area, storm sewer, sanitary sewer, water system and hydrants will remain identical to the Everest Group’s submission.

CSM successfully obtained a special use permit and zoning approval from the Watershed District and the City.

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Bluebook (online)
840 F. Supp. 1304, 30 U.S.P.Q. 2d (BNA) 1039, 1994 U.S. Dist. LEXIS 285, 1994 WL 7618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csm-investors-inc-v-everest-development-ltd-mnd-1994.