Dolmatch Group, Ltd. v. United States

42 Cont. Cas. Fed. 77,266, 40 Fed. Cl. 431, 1998 U.S. Claims LEXIS 35, 1998 WL 92594
CourtUnited States Court of Federal Claims
DecidedJanuary 16, 1998
DocketNo. 96-363C
StatusPublished
Cited by19 cases

This text of 42 Cont. Cas. Fed. 77,266 (Dolmatch Group, Ltd. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dolmatch Group, Ltd. v. United States, 42 Cont. Cas. Fed. 77,266, 40 Fed. Cl. 431, 1998 U.S. Claims LEXIS 35, 1998 WL 92594 (uscfc 1998).

Opinion

OPINION

BRUGGINK, Judge.

This case involves a dispute arising from an alleged contract between plaintiff and the Smithsonian Institution to distribute videotaped Smithsonian programs. It is before the court on defendant’s motion to dismiss and for summary judgment and on plaintiffs cross-motion for summary judgment. Oral argument was held on October 2, 1997. The court took additional evidence in a hearing held on November 13,1997.1 For the following reasons, the motion to dismiss is granted, but the parties’ motions for summary judgment are denied.

BACKGROUND

The Dolmatch Group (the Group) is a marketing and communications organization with primary interest in developing new market opportunities in broadcasting and publishing. Murray Dolmatch is the founder and president of the Group. Defendant acted through the Smithsonian Institution Press (SIP), Video Division, which is a revenue-producing office within the Smithsonian Institution.2 At all times relevant to this case, Andrew Ferguson was the director of the Video Division. Felix Lowe, the director of the SIP, was Ferguson’s supervisor.

In the early 1990s the Video Division desired to assemble a comprehensive collection of foreign programs on videotape relating to various museums worldwide and to market them to the public through direct-mail service, museum gift shops, and certain retailers. On November 12, 1992, after several discussions with Mr. Ferguson, Mr. Dolmatch proposed an agreement authorizing the Group to serve as the Smithsonian Institution’s exclusive representative in contacting foreign museums and libraries for purchase of their videotaped programs. On January 12, 1993, Mr. Ferguson expressed his assent to the proposed agreement in a letter he sent to Mr. Dolmatch. According to Mr. Ferguson’s testimony, this letter was tantamount to a “hunting license,” allowing the Group easier access to museums and libraries under the Smithsonian name. This license, he explained, was not intended to create an exclusive agency or to obligate the Smithsonian in [433]*433any way.

After receiving the letter, Mr. Dolmatch began gathering videotaped programs and forwarding them to Mr. Ferguson for review and consideration. On July 20, 1993, Mr. Dolmatch formally proposed a financial arrangement in exchange for the Group’s services: advance payment of $3000 and subsequent royalty payments to the Group equal to fifteen percent of sales. The record does not reflect any Smithsonian response to Mr. Dolmatch’s financial proposal. No Smithsonian Institution representative ever instructed the Group to purchase any videotaped programs on behalf of the Smithsonian.

The Group shifted gears at some point toward the end of 1993. It apparently proposed selling Smithsonian video-programs rather than buying video-programs for the institution. The record contains a letter from the Group dated September 29, 1993, addressed to Mr. Ferguson stating: “Thank you for your confidence in us, and for your authorization that we may exclusively represent the Smithsonian Video Collection for international television and home video license.” (Def.’s App. of 5/1/97, at 22.) At no point in his affidavit does Mr. Dolmatch aver that this letter was the result of an oral agreement.

In a November 3, 1993, letter Mr. Dolmatch recommended canceling the prior arrangement for the purchase of videos for Smithsonian, claiming that it was not in the best interest of the institution. The Group did not request any payment for the services it had already performed, allegedly at Smithsonian’s request. In the same letter, however, the Group stated: “We respectfully request your authorization to represent the entire Smithsonian Video catalog worldwide, exclusive of the U.S., unless you specifically request us to market certain programs domestically." (Def.’s App. of 5/1/97, at 20.) Under this proposed arrangement, the Group would receive a thirty-five-percent commission on the sale of videotapes and pay all of its own expenses for travel, promotion, exhibits, and advertising.

Although there is no indication that Mr. Ferguson or anyone at the Smithsonian replied, the Group proceeded to market the Smithsonian Institution’s videotapes worldwide. According to Mr. Ferguson, this arrangement was the same as the “hunting license” used in the previous arrangement with the Group.3 Terrance Afer-Anderson, marketing manager for the SIP, provided promotional copies of video-programs, brochures, and literature to plaintiff.4 (See Pl.’s App. of 7/2/97, at 4, 9.) As part of its marketing efforts, the Group used marketing space in overseas trade shows to promote the Smithsonian videotapes.

On December 9, 1993, Mr. Dolmatch requested authorization to market the Smithsonian videotapes domestically. The record does not disclose whether Mr. Ferguson, or anyone else from the Smithsonian Institution, ever responded directly to that request or authorized the Group to market the videos in the United States.

By letter dated February 8, 1994, Mr. Dolmatch notified Mr. Ferguson that a long-term client of his was interested in purchasing a license for a series of videos identified as The Best of Smithsonian World. On March 1, 1994, Mr. Dolmatch forwarded to Mr. Ferguson an unsigned document entitled “Agreement to Represent Program Producer,” which was characterized by Mr. Dolmatch as a “standard distribution agreement.” Upon receipt of the Group’s proposed distribution agreement, Mr. Ferguson forwarded the document to the Smithsonian Institution’s Office of Contracting and Property Management (OCPM) for review by a contracts specialist. The proposed distribution agreement was also reviewed by the Smithsonian’s Office of General Counsel. On April 13, 1994, the OCPM’s contract specialist forwarded the draft agreement to Mr. Ferguson with handwritten notations and some proposed changes.5 The contract spe[434]*434cialist also noted on the facsimile transmittal cover sheet that she was awaiting “Jim Wilson’s response.”6

On April 27, 1994, while the Group’s proposed distribution agreement was under consideration, the Group received a letter from Discovery Communications (Discovery)7 confirming its interest in a number of titles from The Best of Smithsonian World series. Discovery was anxious to finalize a deal because it wanted to include the Smithsonian videotaped programs in its summer schedule. On May 2, 1994, the Group informed Mr. Ferguson of Discovery’s interest and the potential for an agreement; this letter was copied to Mr. Lowe.8 On June 16, 1994, Mr. Dolmatch notified Mr. Ferguson that the Group had reached an agreement with Discovery for the licensing of Smithsonian videos. Mr. Dolmatch urged a prompt response because of Discovery’s programming deadlines.

In late June 1994 Discovery published its programming guide, listing approximately ten episodes of The Best of Smithsonian World. WETA-TV,9 the co-producer and co-owner of the subject programs, learned about the purported sale of programs from Discovery’s announced summer programming guide. WETA-TV contacted the Smithsonian, alleging that the Smithsonian failed to secure the necessary cable and home-video rights prior to any sale to Discovery'. While pursuing the required licenses, the Smithsonian reexamined its dealings with the Group.

On June 20,1994, Mr.

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42 Cont. Cas. Fed. 77,266, 40 Fed. Cl. 431, 1998 U.S. Claims LEXIS 35, 1998 WL 92594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolmatch-group-ltd-v-united-states-uscfc-1998.