Khreativity Unlimited v. Mattel, Inc.

101 F. Supp. 2d 177, 55 U.S.P.Q. 2d (BNA) 1196, 2000 U.S. Dist. LEXIS 6986, 2000 WL 669647
CourtDistrict Court, S.D. New York
DecidedMay 23, 2000
Docket99 CIV. 9321 SAS
StatusPublished
Cited by7 cases

This text of 101 F. Supp. 2d 177 (Khreativity Unlimited v. Mattel, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Khreativity Unlimited v. Mattel, Inc., 101 F. Supp. 2d 177, 55 U.S.P.Q. 2d (BNA) 1196, 2000 U.S. Dist. LEXIS 6986, 2000 WL 669647 (S.D.N.Y. 2000).

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

Defendant Mattel, Inc. (“Mattel”) moves for summary judgment on both claims filed against it by plaintiff Khreativity Unlimited, Inc. (“Khreativity”). In January 1998, Mattel entered into a licensing agreement with the National Basketball Association (“NBA”) to produce a variety of NBA-related toys. Khreativity claims that the idea for this licensing agreement came *179 from a series of meetings and phone calls between Khreativity, Mattel and the NBA in April and May 1998. In its Complaint, Khreativity alleges that Mattel breached an express or implied-in-fact contract to pay Khreativity a finder’s fee for its concept and that Mattel was unjustly enriched by Khreativity’s concept.

Mattel argues that New York law applies to both of plaintiffs claims and that, under New York law, plaintiff cannot prevail. While Khreativity admits that New York law applies to its finder’s fee claim, it argues that California law applies to its unjust enrichment claim and that, under the applicable law, both claims should survive summary judgment. For the reasons set forth below, Mattel’s motion for summary judgment is granted.

I. FACTS AND PROCEDURAL HISTORY

Khreativity, a New Jersey corporation, maintains its principal place of business in New Jersey; Meridyth Mischel Webber, a New Jersey resident, is the President and sole shareholder of Khreativity. See Stipulation of Facts ¶¶ 1-2. Kidzart, Inc. (“Kidzart”), a New York corporation, maintains its principal place of business in Texas and has an office in New York; Ruth Morace is the President and sole shareholder of Kidzart. See id. ¶¶ 3-4. Mattel, a Delaware corporation, maintains its principal place of business in California. See id. ¶ 10.

Four times each year, Mattel holds an Inventor Sweep in New York. See id. ¶ 12. During an Inventor Sweep, personnel from Mattel’s Outside Resources department hold prescheduled meetings with toy inventors to review potential toy ideas. See id. On or about April 23, 1996, Mattel hosted an Inventor Sweep (the “April 1996 Inventor Sweep”) that was attended by 35 to 40 inventors. See id. ¶ 13.

At the April 1996 Inventor Sweep, Mo-race and Webber presented an idea that Kidzart entitled the NBA Commemorative Doll to Jamie Filipeli of Mattel’s Outside Resources department. See id. ¶ 17. 1 The prototype NBA Commemorative Doll consisted of a Mattel Cabbage Patch Kid doll (which Morace or Webber purchased from a retail source) dressed in a uniform bearing the logo of the New Jersey Nets, an NBA team. See id. Morace also gave Mattel a written description of the NBA Commemorative Doll. See id. ¶ 18 & Ex. C (written description). Prior to the meeting with Filipeli, Morace completed and signed a Mattel Product Disclosure Form, which discloses the name and contact information for an inventor, along with the title and a short description of the inventor’s potential toy idea. See id. ¶¶ 14-16 & Ex. B (Product Disclosure Form). Mo-race gave the form to Filipeli at their meeting. See id. ¶ 16. Following the meeting, Filipeli indicated on the Product Disclosure form her intention to show the NBA Commemorative Doll idea to Gene Garlock, Mattel’s Vice President for Entertainment and Licensing. See id. ¶¶ 20-21.

Following the April 1996 Inventor Sweep, Webber (in New Jersey) telephoned both Garlock (in California) and Greg Lassen (in New York), an employee of NBA Properties, Inc. (“NBA Properties”), to arrange a meeting in New York. See id. ¶¶ 22-24. According to plaintiff, Webber spoke with Garlock on more than one occasion and, during one of these conversations, Garlock told Webber that if a deal was made, Khreativity would be entitled to a finder’s fee. See Complaint ¶ 13; Affidavit of Meridyth Webber (“Webber Aff.”) ¶ 4. On May 5, 1996, Webber sent Garlock a letter at the Waldorf-Astoria hotel in New York, confirming their upcoming meeting and notifying Garlock that she had arranged for the attendance of “the senior representative in charge of li *180 censing for the [NBA].” See id. ¶ 25 & Ex. D (May 5, 1996 letter from Webber to Garlock). In her letter, Webber gave as a contact number the telephone number of Kidzart’s New York office, which is also Morace’s residence. See id. ¶ 26.

On or about May 8, 1996, Webber and Morace met with Garlock and Lassen at the offices of NBA Properties in New York (“May 8 meeting”). See id. ¶ 27. Plaintiff makes several allegations concerning the substance of the May 8 meeting. First, plaintiff alleges that the parties discussed a number of ideas besides the NBA Commemorative Doll. See Opp. Mem. at 5. Specifically, plaintiff alleges that they discussed: (1) releasing Mattel’s Barbie doll dressed in the uniform of an NBA or WNBA team; (2) using stick-on letters and numbers to personalize uniforms; and (3) designing a more expensive doll utilizing clothing and apparel from the NBA and WNBA. See id.; Webber Aff. ¶ 6. Second, plaintiff alleges that Garlock reaffirmed his earlier promise that Khreativity would be entitled to a finder’s fee. See Opp. Mem. at 5; Webber Aff. ¶ 8. Third, plaintiff alleges that Garlock told Webber and Morace that their ideas would be submitted for consideration by Jeanne Olson, Mattel’s Senior Vice President and General Manager of Large and Small Dolls. See Opp. Mem. at 5. Fourth, plaintiff alleges that, at the conclusion of the meeting, Gar-lock invited Lassen to come to California the following week, to further discuss an arrangement between Mattel and the NBA. See id. at 5-6.

The following day, Morace and Webber (from New York) wrote Lassen (in New York) to thank him for meeting with them. See May 9, 1996 Letter from Morace and Webber to Lassen, Ex. E to the Affidavit of Robin A. Henry, counsel for Mattel (“Henry Aff.”). In their letter, Morace and Webber stated:

We are looking forward to a[n] N.B.A. doll and/or doll fashions as being a successful concept for all parties involved. As I suggested, it would also be wonderful to mark the introduction of the N.B.A. Women’s teams with a doll line featuring all of the appropriate official uniforms and logos for each of the new 8 teams.

Id. On May 13, 1996, Garlock (in California) sent a letter to Morace (in New York). See Stipulation of Facts ¶ 28 & Ex. E (May 13, 1996 letter from Garlock to Webber). That letter stated:

I have passed your Cabbage Patch NBA prototype on to Jeanne Olson, SVP/General Manager Large and Small Dolls. Although she thought it was an interesting concept, if [sic] is not on strategy with the overall marketing of the brand. Enclosed, please find the sample. Thank you for your submission and your continued interest in working with Mattel.

Id.

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101 F. Supp. 2d 177, 55 U.S.P.Q. 2d (BNA) 1196, 2000 U.S. Dist. LEXIS 6986, 2000 WL 669647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/khreativity-unlimited-v-mattel-inc-nysd-2000.