Johnson v. Altamirano

District Court, S.D. California·Decided October 5, 2020·No. 3:19-cv-01185·Unknown

Opinion

1 2 3 4

8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10

11 ANTHONY JOHNSON, Case No.: 3:19-cv-01185-H-BLM 12 Plaintiff, ORDER DENYING 13 v. PLAINTIFF’S MOTION FOR 14 RECONSIDERATION OF THE MANUEL ALTAMIRANO, an COURT’S AUGUST 25, 2020 ORDER 15 individual; RICHARD TURNER, an

individual; DAVID KINNEY, an 16 [Doc. No. 98.] individual; DAVID HUFFMAN, an 17 individual; PAUL TYRELL, an individual; SEAN SULLIVAN, an 18 individual; STORIX, INC., a California 19 corporation; and DOES 1-5, inclusive, 20 Defendants. 21

22 On August 25, 2020, the Court granted Defendants Altamirano, Huffman, Kinney, 23 and Turner’s motion for a six-month further stay of the action pending the appeal in Storix, 24 Inc. v. Johnson, No. D075308 (Cal. App., filed Dec. 10, 2018). (Doc. No. 97.) On August 25 31, 2020, Plaintiff Anthony Johnson filed a motion for reconsideration of the Court’s 26 August 25, 2020 order. (Doc. No. 98.) On September 14, 2020, Defendants filed a 27 response in opposition to Plaintiff’s motion for reconsideration. (Doc. No. 99.) On 28 September 17, 2020, Plaintiff filed a reply. (Doc. No. 102.) On September 21, 2020, the 1 Court took the matter under submission. (Doc. No. 100.) For the reasons below, the Court 2 denies Plaintiff’s motion for reconsideration. 3 Background 4 I. The Prior Federal Action 5 On August 8, 2014, Anthony Johnson – the Plaintiff in this action – filed a complaint 6 in federal court, Case No. 14-cv-1873-H-BLM, against Storix – one of the defendants in 7 this action – alleging claims for: (1) federal copyright infringement under the Copyright 8 Act of 1976, 17 U.S.C. § 101, et seq.; (2) contributory copyright infringement; and (3) 9 vicarious copyright infringement. (Doc. No. 34-2, RJN Ex. 1.) On September 19, 2014, 10 Storix filed an answer to Johnson’s complaint and counterclaims for: (1) a declaratory 11 judgment of non-infringement; and a declaratory judgment that it is the owner of the 12 copyrights at issue. (Id. Ex. 2.) 13 The action was tried before a jury beginning on December 8, 2015. (Doc. No. 34-2, 14 RJN Ex. 3 at 1.) On December 15, 2015, the jury returned a verdict that was in favor of 15 Storix on all causes of action. (Id. at 2.) Specifically, in the verdict, the jury found that 16 “Storix, Inc. proved by a preponderance of the evidence that Anthony Johnson’s copyright 17 infringement claim against Storix, Inc. is barred because Anthony Johnson transferred 18 ownership of all pre-incorporation copyrights, including SBAdmin Version 1.3, in writing 19 from himself to Storix, Inc.” (Id.) On November 16, 2016, the Court entered an amended 20 judgment incorporating the jury’s verdict “in favor of Defendant and Counter-Claimant 21 Storix, and against Plaintiff Anthony Johnson.” (Id. at 3.) 22 Johnson appealed the Court’s judgment to the United States Court of Appeals for 23 the Ninth Circuit. On December 19, 2017, the Ninth Circuit affirmed in part, reversed in 24 part, and remanded for further proceedings. Johnson v. Storix, Inc., 716 F. App’x 628, 632 25 (9th Cir. 2017), cert. denied, 139 S. Ct. 76 (2018). In the decision, the Ninth Circuit 26 affirmed the jury’s verdict on liability, as well as the Court’s decision to award Storix 27 attorneys’ fees. Id. at 631. However, the Ninth Circuit held that the fees awarded were 28 “unreasonable,” and remanded with instructions for the Court “to reconsider the amount.” 1 Id. at 632. On April 2, 2018, the Ninth Circuit issued its mandate. (Doc. No. 283.) 2 On August 7, 2018, after issuing an order awarding attorneys’ fees on remand, the 3 Court entered a second amended judgment in the action. (Doc. No. 34-2, RJN Ex. 6.) On 4 February 5, 2020, the Ninth Circuit affirmed the Court’s second amended judgment. (Doc. 5 No. 320.) On May 18, 2020, the Court held an appeal mandate hearing and spread the 6 Ninth Circuit’s mandate. (Doc. No. 320.) On June 29, 2020, the Supreme Court denied 7 Johnson’s petition for writ of certiorari. Johnson v. Storix, No. 19-1244 (U.S. Jun. 29, 8 2020). 9 II. The State Court Actions 10 On August 20, 2015, Storix filed a complaint in state court, Case No. 37-2015- 11 28262-CU-BT-CTL, against Anthony Johnson and Janstor Technology, alleging claims 12 for: (1) breach of fiduciary duty against Johnson; and (2) aiding and abetting breach of 13 fiduciary duty against Janstor. (Doc. No. 34-2, RJN Ex. 8.) On October 13, 2015, Anthony 14 Johnson along with Robin Sassi filed a derivative complaint on behalf of Storix in state 15 court, Case No. 37-2015-34545-CU-BT-CTL, against David Huffman, Richard Turner, 16 Manuel Altamirano, David Kinney, and David Smiljkovich, alleging claims for: (1) breach 17 of fiduciary duty; (2) abuse of control; (3) corporate waste; and (4) an accounting. (Doc. 18 No. 34-3, RJN Ex. 14.) The two actions were subsequently consolidated by the state court. 19 On March 14, 2016, Storix filed a first amended complaint in Case No. 37-2015- 20 28262, alleging the same two causes of action. (Doc. No. 34-2, RJN Ex. 9.) On April 13, 21 2016, Johnson filed a cross-complaint in Case No. 37-2015-28262 against David Huffman, 22 Richard Turner, Manuel Altamirano, David Kinney, and David Smiljkovich, alleging 23 claims for: (1) breach of fiduciary duty; (2) civil conspiracy; and (3) fraud. (Id. Ex. 13.) 24 On June 2, 2016, Johnson and Sassi filed a first amended complaint in the derivative action, 25 alleging the same four causes of action. (Doc. No. 34-3, RJN Ex. 15.) On September 6, 26 27 28 1 Johnson subsequently filed a petition for writ of certiorari with the United States Supreme Court, 1 2016, Storix filed a second amended complaint in Case No. 37-2015-28262, alleging the 2 same two causes of action for: (1) breach of fiduciary duty against Johnson; and (2) aiding 3 and abetting breach of fiduciary duty against Janstor. (Doc. No. 34-2, RJN Ex. 11.) 4 Following a jury trial, on February 20, 2018, a jury returned a verdict in Case No. 5 37-2015-28262 in favor of Storix and against Johnson on Storix’s claim for breach of 6 fiduciary duty and against Johnson on all of his cross-claims. (Doc. No. 34-4, RJN Ex. 7 17.) Specifically, in the verdict, the jury found that “Anthony Johnson breach[ed] his duty 8 of loyalty by knowingly acting against Storix, Inc.’s interests while serving on the Board 9 of Directors of Storix, Inc.” (Id. at 1.) In addition, the jury award Storix $3,739.14 “as a 10 result of Anthony Johnson’s acts or conduct in breach of a fiduciary duty or duties owed 11 to Storix, Inc.” (Id. at 2.) 12 On May 16, 2018, after a bench trial, the state court issued a decision and order on 13 the claims in the derivative action, finding in favor of the defendants and against the 14 plaintiff on all four causes of action. (Doc. No. 34-4, RJN Ex. 20.) On September 12, 15 2018, the state court entered a consolidated judgment in the two actions as follows: (1) 16 “[i]n favor of plaintiff Storix, Inc. and against Defendant Anthony Johnson on Storix Inc’s 17 complaint for breach of fiduciary duty;” (2) “Cross-Complainant Anthony Johnson shall 18 take nothing from Cross-Defendants David Huffman, Richard Turner, Manuel Altamirano, 19 David Kinney, and David Smiljkovich, or any of them, on the Cross-Complaint filed in 20 Case No. 37-2015-00028262-CU-BT-CTL;” (3) “Plaintiffs Anthony Johnson and Robin 21 Sassi shall take nothing from Defendants David Huffman, Richard Turner, Manuel 22 Altamirano, David Kinney, and David Smiljkovich, or any of them on the First Amended 23 Derivative Complaint filed in Case No. 37-2015-00034545-CUBT-CTL.” (Id. Ex. 22.) 24 On December 10, 2018, Plaintiff appealed the September 12, 2018 consolidated 25 judgment to the California Court of Appeal, where the appeal is currently pending. (Doc. 26 No. 63-1, Exs. C, D.) See Storix, Inc. v. Johnson, No. D075308 (Cal. App., filed Dec.

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