Fantagraphics Books Inc v. Ferris

District Court, W.D. Washington·Decided September 9, 2022·No. 2:21-cv-00802·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE FANTAGRAPHICS BOOKS, INC., CASE NO. C21-00802-LK Plaintiff, ORDER DENYING MOTION FOR v. PARTIAL SUMMARY JUDGMENT Defendant.

This matter comes before the Court on Emil Ferris’s motion for partial summary judgment. Dkt. No. 33. Fantagraphics Books, Inc., a Seattle-based publisher, published Ferris’s book entitled My Favorite Thing Is Monsters in 2017. Dkt. No. 2 at 1. The parties dispute whether Fantagraphics is entitled to publish “Book 2” of Monsters under the parties’ 2016 publishing agreement. They have filed competing claims for declaratory relief on that issue, and Ferris seeks partial summary judgment dismissing Fantagraphics’ claim for a declaratory judgment that it is entitled to publish Book 2 of Monsters and granting Ferris’s counterclaim for a declaratory judgment that Fantagraphics does not have the right to publish anything other than the Monsters book it has already published. For the reasons set forth below, the Court denies the motion. A. Fantagraphics and Ferris Agree to Publish Monsters In 2012, Ferris, a formally trained artist and novelist, began working on what would become Monsters. Dkt. No. 34 at 2. The graphic novel tells the story of Karen, a 10-year-old girl

who grew up in Chicago in the 1960s. Id. Ferris writes and illustrates everything the reader sees on the page, including the writing, art, color, and lettering, so her work on the manuscript was time-consuming. Id. In 2015, Ferris finished a 600+ page manuscript for Monsters, and though she knew it would require additional editing, she engaged literary agent Holly Bemiss to shop the manuscript to potential publishers. Id. Fantagraphics, an independent Seattle-based book publishing company, expressed interest in publishing Monsters. Id. During negotiations, Gary Groth, the president of Fantagraphics, indicated that the 600+ page manuscript was too long to be commercially marketable. Dkt. No. 34 at 3. Fantagraphics contends that the parties agreed that Fantagraphics would publish Monsters in two volumes because of its length. Dkt. No. 36 at 3.1 For her part, Ferris asserts that the parties discussed but

never reached agreement on the terms for publishing the second installment of the story. Dkt. No. 34 at 3. Ferris agreed to edit the manuscript down to approximately 400 pages, which left approximately 230 pages that she refers to as the “remnant.” Id. Ferris contends that she “never intended to use the remnant as the principal source for the next installment of Monsters, which [she] started working on before the first book was published.” Id. As part of Ferris’s process of editing down Monsters, she created a set of new pages that presented a different ending than the one in the manuscript. Id. According to Ferris, the “new ending is not in any way in alignment with the remnant, so publishing the remnant as the next installment of the story won’t make any

1 The parties’ dispute over the admissibility of the alleged communications regarding this issue is addressed below. sense and will be confusing to readers.” Id. Ferris contends that once Book 1 was created, the remnant “was no longer usable as the basis for the next work in the series,” id. at 6, and she told Groth that only 30–50 pages of the remnant “could possibly be used” for the next book, id. at 3. The parties entered into a publishing agreement in January 2016. Dkt. No. 15-1. The

agreement grants Fantagraphics exclusive rights to, among other things, “[p]rint, publish, and sell the Work in hard cover and soft cover book form,” “[p]rovide electronic and digital versions of the book,” and “[l]icense publication of the Work”—including “selections from the Work in anthologies and other publications, in mail-order and schoolbook editions; or as premiums and other special editions.” Id. at 2. The agreement does not define the term “Work.” However, it defines “Book” as “a compilation of the Work in book form currently titled My Favorite Thing Is Monsters.” Id. It further contains a reservation of rights providing that “[a]ll rights (TV/movie/dramatic/multimedia/merchandising) not included in this contract belong to the Author.” Id. at 4. The agreement’s integration clause states that it “contains the entire understanding of the parties with respect to its subject matter,” and that “[a]ny and all

representations or agreements by any agent or representative of either party to the contrary shall be of no effect.” Id. at 6. Furthermore, any “waiver or modification of any of the terms of th[e] Agreement” is required to be “in writing, signed by both parties.” Id. Ferris agreed to deliver the “Work to be included in the Book” to Fantagraphics “according to a mutually agreed upon schedule,” and Fantagraphics agreed to “publish the Work within 24 months of the date of th[e] Agreement.” Id. at 4. Ferris also authorized and appointed Bemiss to act as her agent under the terms of the agreement. Id. at 5; see also Dkt. No. 15 at 3. Bemiss sent Groth a draft announcement for his approval to publicize the agreement and upcoming publication. Dkt. No. 36 at 4; see also Dkt. No. 2 at 3; Dkt. No. 15 at 4. The draft announcement, which was

subsequently printed in relevant part in the trade publication Publishers’ Marketplace, stated that the book would be “published in 2 volumes.” Dkt. No. 36 at 4; see also Dkt. No. 2 at 3; Dkt. No. 15 at 4. Monsters Book 1 was published in February 2017. Dkt. No. 34 at 4. Fantagraphics published it with the words “Book One” prominently written on the title page and spine. Dkt. No.

36 at 6; see also Dkt. No. 15 at 5. With the agreement in place, Fantagraphics began granting licenses to foreign publishers to publish both volumes. Dkt. No. 36 at 4. According to Fantagraphics, the licenses specified the separate publication of Book 1 and Book 2, and Fantagraphics received separate advance payments for each volume. Id. at 4–5. Fantagraphics sent Ferris copies of the licenses and her contractual share of the advance payments, including those specifically attributable to Book 2, without objection from Ferris. Id. at 5. B. Publication of Book 2 Is Repeatedly Delayed According to Fantagraphics, the parties and Bemiss agreed that Book 2 would be published in July 2017. Dkt. No. 36 at 5. Ferris advised Fantagraphics that she wanted to “polish” the second part of Monsters before it was published, promising that she would deliver her polished version to

Fantagraphics in time to meet the publication date. Id.; see also Dkt. No. 15 at 6. Fantagraphics announced the July 2017 publication date in its catalogue, and asserts that it did so with the “full knowledge and enthusiastic support” of Bemiss and Ferris. Dkt. No. 36 at 5; cf. Dkt. No. 15 at 5. Ferris created a front cover for Book 2 in collaboration with Fantagraphics’ designer, and Fantagraphics alleges that she agreed that it could be included with the announcement for Book 2. Dkt. No. 36 at 5. Ferris and Groth agreed that Ferris would need to write pages for Book 2 that would represent a transition from Book 1 to Book 2, and Ferris sent the new transition pages to Groth in May 2017. Id. at 13; see also Dkt. No. 19-1 at 9; Dkt. No. 15 at 8. Despite the parties’ initial cooperation, difficulties ensued in bringing Book 2 to market.

Ferris claims that Fantagraphics “pressured” her to meet several deadlines to finish the next installment, but she was unable to meet those deadlines because Fantagraphics was “insisting” that she travel to promote Book 1. Dkt. No. 34 at 4. Regardless of the reasons, Ferris did not meet her deadline, and the parties agreed to reschedule the publication of Book 2 to October 2017. Dkt. No. 36 at 6. Ferris failed to meet the deadline again, and the parties agreed that Book 2 would be

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