Janky v. Batistatos

259 F.R.D. 373, 91 U.S.P.Q. 2d (BNA) 1681, 2009 U.S. Dist. LEXIS 66680, 2009 WL 2382624
CourtDistrict Court, N.D. Indiana
DecidedJuly 31, 2009
DocketNo. 2:07-CV-339 PPS APR
StatusPublished
Cited by6 cases

This text of 259 F.R.D. 373 (Janky v. Batistatos) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Janky v. Batistatos, 259 F.R.D. 373, 91 U.S.P.Q. 2d (BNA) 1681, 2009 U.S. Dist. LEXIS 66680, 2009 WL 2382624 (N.D. Ind. 2009).

Opinion

[375]*375MEMORANDUM OPINION ORDER

PHILIP P. SIMON, District Judge.

The issue before the Court is whether attorneys Gregory Reed and Stephanie L. Hammonds (together, “Respondents”) should be sanctioned under Rule 11 for their filing a spurious complaint in this case. The complaint named Cheryl Janky as the plaintiff and was brought against the Lake County Convention & Visitors Bureau (“LCCVB”), its Board of Directors, its CEO Speros Batistatos, and its attorneys Timothy Jordan, Robert Goldstein, and Daniel Kuzman. The complaint was based on claims those Defendants asserted when defending an earlier federal copyright lawsuit, also brought by Janky. The main thrust of this second lawsuit was that the defenses used in the first case were frivolous and groundless. In fact, there was no basis for Janky’s second lawsuit, as it had been established in the initial litigation that the defenses were grounded in fact and credible evidence, and were held by the judge in that ease to not be frivolous. After dismissing the complaint before me, I sua sponte ordered Respondents to show cause why they should not be sanctioned for violating Rule 11(b) of the Federal Rules of Civil Procedure. Because they failed to show that the claims included in the second lawsuit were warranted by existing law or by a nonfrivolous argument, or that the suit was brought for a proper purpose, sanctions will be imposed.

BACKGROUND

The procedural history underlying the dispute between these parties is extensive, but at its core, it’s a fight over ownership of a song. Janky wrote a song called “Wonders of Indiana” and had it copyrighted. The song was later used by the LCCVB without Janky’s permission in promotional videos and albums sold at its Welcome Center which prompted Janky to sue LCCVB in this court in Case No. 3:05-CV-217 (“Janky I”). By consent of the parties, Janky I proceeded before the magistrate judge, first Magistrate Judge Cherry and then Magistrate Judge Rodovieh.1

In defense of the lawsuit, the LCCVB asserted a “work for hire” defense. It claimed that the song was written in response to an announcement from one of Janky’s band mates, Henry Farag, who had notified the band as to what the LCCVB was looking for in a promotional song. (Janky I, DE 333 at 2.) The LCCVB also claimed it was justified in relying on Farag’s representations that he was in a position to negotiate the use of the song, since he was listed as the song’s coauthor and producer on the album in which it appeared. (Janky I, DE 130 at 4.)

Janky I got off to a rocky start. Towards the beginning of the case, Judge Cherry sanctioned Janky for unreasonably maintaining the position that personal jurisdiction of LCCVB was proper in Michigan, where the case was originally brought. (Janky I, DE 149.) Judge Cherry later sanctioned Reed for filing a motion that did not have evidentiary support. (Janky I, DE 187 at 9-10.) Additionally, Janky’s attorneys were sanctioned by Judge Rodovieh for filing a motion to disqualify Judge Cherry under 28 U.S.C. 455 after he had already recused himself from the case. (Janky 1, DE 314, DE 323.).

Janky prevailed at trial, with the jury finding that LCCVB did infringe on her copyright and awarding her $100,000. (Janky I, DE 229.) While Janky did win, it was established at different points throughout Janky 1 that LCCVB’s work for hire defense was not frivolous. Instead, the matter came down to a reasonably close question of fact to be decided by the jury. In the first of these instances, Respondents made a Rule 50 motion to dismiss the work for hire defense as a matter of law. (Janky I, DE 228.) Judge Cherry denied the motion, which should have been Respondents’ first clue that the defense had a colorable basis. (Id.). Judge Rodovich later agreed with Judge Cherry when he denied Respondents’ Motion for Fees pursuant to 17 U.S.C. § 505 of the Copyright Act. (Janky I, DE 333 at 14-17.) In that opinion, [376]*376Judge Rodovich applied the “Fogerty factors,” used to determine whether the prevailing party in a copyright case is entitled to attorneys’ fees. (Id. at 10-19.) One of those factors asks whether an opposing party’s defenses and claims were frivolous, and Judge Rodovich determined that Defendants’ claims were not.2 (Id.) Respondents then filed a motion for reconsideration, which Judge Rodovich also denied, reaffirming his conclusion that the defenses were not frivolous. (Janky 1, DE 361, at 24-26.)

Judge Rodovich also warned both parties — in the strongest terms and on multiple occasions — to cease their frenetic pursuit of fees. (Id.) Not only did Respondents file the previously mentioned Section 505 motion, but they also made a request for fees for having to respond to LCCVB’s own fee request pursuant to 28 U.S.C. § 1927, with Respondents claiming the LCCVB motion was frivolous. (Janky I, DE 256.) Judge Rodovich denied both parties, appropriately describing Janky’s motion as being made in “the circular manner that has come to characterize this case.” (Janky I, DE 361, at 6.) Respondents later filed yet another motion under 28 U.S.C. § 1927 based upon a belief that Defendants should have settled the case years before it ever reached trial. (Janky I, DE 377.) This motion was denied as well. (Janky I, DE 380.) Because the parties were previously advised that future fee and sanction requests would be “closely examined,” Judge Rodovich also ordered Respondents to show cause why they should not be sanctioned. (Id.) The Response to that order has been submitted and is currently under advisement.

Various appeals were filed in Janky I, none of which have been resolved. In its notices of appeal, LCCVB’s challenged the denial of its motion for new trial (Janky I, DE 282) and one of its motions for fees and costs (Janky I, DE 362). For her part, Janky challenges Judge Rodovich’s order that the sanctions imposed by Judge Cherry against attorney Reed could not be set-off against Janky’s $100,000 jury award. (Janky I, DE 305.) Reed had hoped to reach a result similar to that permitted for Janky herself. Recall that Janky was sanctioned roughly $12,300 pursuant to Rule 37(c) relating to her continued assertion of an improper jurisdictional argument, and this amount was set-off against her $100,000 damages award. (Janky 1, DE 292 at 2.) Judge Rodovich denied Reed’s request to set-off his own Rule 11(b)(2) sanctions against his client’s damages award. (Id.)

Aside from the original litigation and three appeals mentioned above, Janky also filed a state court case in Lake County Circuit Court, Crown Point, Indiana. (Case No. 45C01-0609-PL-400) against the LCCVB, its CEO Speros Batistatos, as well as Farag and his record company Street Gold Records. Remarkably, the state case relates to the same set of operative facts as Janky I and is still pending.

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Bluebook (online)
259 F.R.D. 373, 91 U.S.P.Q. 2d (BNA) 1681, 2009 U.S. Dist. LEXIS 66680, 2009 WL 2382624, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janky-v-batistatos-innd-2009.