Joe Hand Promotions, Inc. v. Jacobson

874 F. Supp. 2d 1010, 2012 U.S. Dist. LEXIS 79981, 2012 WL 2088940
CourtDistrict Court, D. Oregon
DecidedJune 8, 2012
DocketNo. 03:11-cv-00065-HU
StatusPublished
Cited by4 cases

This text of 874 F. Supp. 2d 1010 (Joe Hand Promotions, Inc. v. Jacobson) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joe Hand Promotions, Inc. v. Jacobson, 874 F. Supp. 2d 1010, 2012 U.S. Dist. LEXIS 79981, 2012 WL 2088940 (D. Or. 2012).

Opinion

MEMORANDUM OPINION AND ORDER ON MOTION FOR SUMMARY JUDGMENT

HUBEL, United States Magistrate Judge:

The plaintiff Joe Hand Promotions, Inc. (“Joe Hand”) brings this action under the [1012]*1012Federal Communications Act of 1934, 47 U.S.C. §§ 5531 and 6052 (the “FCA”), alleging the defendants Randy Jacobson (“Jacobson”) and Par III, Inc. (“Par III”), doing business as the Porterhouse Restaurant (the “Restaurant”), unlawfully exhibited the “Ultimate Fighting Championship 93: Franklin v. Henderson Program” (the “Program”) at the Restaurant on January 17, 2009. Joe Hand claims it paid for and received exclusive nationwide television distribution rights for the Program, and it entered into sublicensing agreements to show the Program with various commercial enterprises throughout North America. Joe Hand claims the defendants unlawfully intercepted, published, exhibited, and divulged the Program for private financial gain without obtaining a sublicense to do so from Joe Hand, in violation of the FCA. Joe Hand also asserts a common-law claim for conversion of the Program. Joe Hand seeks statutory damages up to $100,000 for the defendants’ violation of 47 U.S.C. § 605; statutory damages up to $50,000 for the defendants’ violation of 47 U.S.C. § 553; compensatory damages to be proved at trial for conversion; and its attorney’s fees and costs. Dkt. # 1.

The matter is before the court on the defendants’ motion for summary judgment. The defendants move for summary judgment on three grounds, each of which is discussed below.

Standards

Summary judgment “should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c)(2). In considering a motion for summary judgment, the court “must not weigh the evidence or determine the truth of the matter but only determine whether there is a genuine issue for trial.” Playboy Enters., Inc. v. Welles, 279 F.3d 796, 800 (9th Cir.2002) (citing Abdul-Jabbar v. General Motors Corp., 85 F.3d 407, 410 (9th Cir.1996)).

The Ninth Circuit Court of Appeals has described “the shifting burden of proof governing motions for summary judgment” as follows:

The moving party initially bears the burden of proving the absence of a genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Where the non-moving party bears the burden of proof at trial, the moving party need only prove that there is an absence of evidence to support the non-moving party’s case. Id. at 325, 106 S.Ct. 2548. Where the moving party meets that burden, the burden then shifts to the non-moving party to designate specific facts demonstrating the existence of genuine issues for trial. Id. at 324, 106 S.Ct. 2548. This burden is not a light one. The non-moving party must show more than the mere existence of a scintilla of evidence. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, [1013]*101391 L.Ed.2d 202 (1986). The non-moving party must do more than show there is some “metaphysical doubt” as to the material facts at issue. Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). In fact, the non-moving party must come forth with evidence from which a jury could reasonably render a verdict in the non-moving party’s favor. Anderson, 477 U.S. at 252, 106 S.Ct. 2505. In determining whether a jury could reasonably render a verdict in the non-moving party’s favor, all justifiable inferences are to be drawn in its favor. Id. at 255, 106 S.Ct. 2505.

In re Oracle Corp. Securities Litigation, 627 F.3d 376, 387 (9th Cir.2010).

Discussion A. Corporate Veil

The defendants argue Joe Hand has not shown Jacobson had any involvement in the alleged showing of the Program, and in any event, he cannot be held individually liable for Par Ill’s actions solely on the basis that he is president of the corporation. Joe Hand responds that Jacobson is listed on records of the Oregon Secretary of State as the registered agent, president, and secretary of Par III, Inc., with no other individual being listed as an officer or shareholder of the corporation. Joe Hand asserts Jacobson is solely responsible for the day-to-day operations of the corporation (and, therefore, the Restaurant), giving rise to “an inference that the corporation is his alter ego[.]” Dkt. # 26 (Pi’s Memorandum), p. 3 (citing Jacobson’s Declaration, Dkt. #24); see Dkt. #24, Jacobson’s Declaration, ¶ 2 & attachment). Joe Hand claims, therefore, that issues of fact exist regarding Jacobson’s involvement in showing the Program, precluding summary judgment. Id.

The defendants rely on State ex rel. Neidig v. Superior National Insurance Co., 343 Or. 434, 173 P.3d 123 (2007), in which the Oregon Supreme Court discussed in detail the elements required to pierce the corporate veil. The analysis begins with the Oregon Supreme Court’s decision in Amfac Foods v. International Systems, 294 Or. 94,108-09, 654 P.2d 1092, 1101-02 (1982), where the court explained an “exception to the rule of shareholder immunity”:

“We state the exception to the rule as follows: When a plaintiff seeks to collect a corporate debt from a shareholder by virtue of the shareholder’s control over the debtor corporation rather than on some other theory, the plaintiff must allege and prove not only that the debt- or corporation was under the actual control of the shareholder but also that the plaintiffs inability to collect from the corporation resulted from some form of improper conduct on the part of the shareholder. This causation requirement has two implications. The shareholder’s alleged control over the corporation must not be only potential but must actually have been exercised in a manner either causing the plaintiff to enter the transaction with the corporation or causing the corporation’s default on the transaction or a resulting obligation.

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874 F. Supp. 2d 1010, 2012 U.S. Dist. LEXIS 79981, 2012 WL 2088940, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joe-hand-promotions-inc-v-jacobson-ord-2012.