LeSEA Inc v. LeSEA Broadcasting Corporation

District Court, N.D. Indiana·Decided August 22, 2023·No. 3:18-cv-00914·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF INDIANA SOUTH BEND DIVISION LESEA, INC., FAMILY BROADCASTING CORPORATION and LESEA GLOBAL FEED THE HUNGRY Inc., Plaintiffs, v. No. 3:18CV914-PPS/MGG LESEA BROADCASTING CORPORATION, LESTER SUMRALL, DR. JOHN W. SWAILS III, and EDWARD WASSMER, Defendants. LESTER SUMRALL and THE LESTER SUMRALL FAMILY TRUST, Counterclaim Plaintiff and Third-Party Plaintiffs, v. LESEA, INC., FAMILY BROADCASTING CORPORATION, LESEA GLOBAL FEED THE HUNGRY, INC., LESEA BROADCASTING OF SOUTH BEND, INC., LESEA BROADCASTING OF INDIANAPOLIS, INC., LESEA BROADCASTING OF TULSA, INC., LESEA BROADCASTING OF HAWAII, INC., LESEA BROADCASTING OF ST. CROIX, INC., WORLD HARVEST BIBLE COLLEGE INDIANA CHRISTIAN UNIVERSITY, INC., STEPHEN P. SUMRALL, DAVID M. SUMRALL, ANGELA N. GRABOWSKI, ANDREW J. SUMRALL, and ADAM SUMRALL, Counterclaim Defendants and Third-Party Defendants. OPINION AND ORDER After a separate opinion disposing of all but one remaining claim, this family dispute involves who owns the rights to a photograph that was taken back in 1994. The

Plaintiff, Lester Sumrall, accompanied his grandfather on a mission trip to China that year. During the trip, Lester alleges that he took a photograph of his grandfather which was later used by his grandfather’s charitable Christian organization in fundraising. Lester was employed by the organization at the time and frequently accompanied his grandfather on mission trips. But he claims this particular trip was a one-off personal

adventure with his grandfather. And because he obtained a copyright on the photo some 23 years later, Lester claims that the organization is liable to him for infringing that copyright. This opinion addresses cross-motions for summary judgment on Lester’s claim for copyright infringement in Count X of the Second Amended Counterclaim. [DE 170.] Because it is clear that the photo was taken as a work for hire, and no reasonable jury could find otherwise, summary judgment must be granted against

Lester. Material Facts Dr. Lester Sumrall was a global missionary who founded several non-profit entities — LeSEA, Inc., LeSEA Broadcasting, n/k/a Family Broadcasting Corporation, and LeSEA Global Feed the Hungry (collectively the LeSEA organizations or just

“LeSEA”). [DE 354 at ¶1; DE 360 at ¶¶1, 3-5.] “LeSEA” stands for the Lester Sumrall

2 Evangelistic Association. [DE 360 at ¶2.] To avoid confusion, I will refer to him as “Dr. Sumrall” and to his grandson (the Plaintiff of the same name) as “Lester.” Dr. Sumrall traveled internationally on mission trips, and on behalf of LeSEA’s

Feed the Hungry division – an international charitable food program. [DE 354 at ¶2.] Feed the Hungry distributed food through local churches throughout the world. [Id. at ¶4.] The Feed the Hungry initiative was eventually incorporated as an independent not-for-profit entity known as LeSEA Global Feed the Hungry. [Id. at ¶3.] During his travels for LeSEA’s Feed the Hungry Program, Dr. Sumrall would be

accompanied by LeSEA employees who often took pictures of Dr. Sumrall. [Id. at ¶5.] The ministry had photographic equipment that would be taken on Dr. Sumrall’s trips for the purpose, with the film or digital SD card turned into the organization upon return. [Id. at ¶6.] Although there was no written policy, responsibilities of LeSEA employees who traveled with Dr. Sumrall included documenting the trip by taking photographs. [Id. at ¶7.] Providing this and other types of assistance to Dr. Sumrall

during his mission trips was a work responsibility of LeSEA employees. [Id. at ¶8.] Dr. Sumrall’s grandson Lester is a former LeSEA employee who describes himself on his personal LinkedIn page as an assistant to the chairman of LeSEA (meaning Dr. Sumrall) from January of 1993 through May of 1996. [Id. at ¶¶9, 11.] Lester was paid by LeSEA from 1993 through Dr. Sumrall’s death in 1996, including in

the form of a housing salary. [Id. at ¶10.] Lester’s LinkedIn page states that as part of his responsibilities as Dr. Sumrall’s assistant, Lester “[t]raveled nationally as well as 3 internationally to promote the various aspects of LeSea, Inc. and their ministry efforts” and “[a]ssisted in the creation of promotional videos as a way to market [LeSEA’s] relief work in order to gain additional contributions.” [Id. at ¶12.]

Lester claims that, starting at age 8, he began accompanying Dr. Sumrall on his evangelistic trips, both domestic and overseas, and traveled on dozens of such trips with his grandfather. [DE 371 at ¶¶31, 32; DE 355-1 at ¶¶5, 6; DE 360 at ¶¶13, 14.] Lester has asserted under oath that he was not required to perform any official duties on any of these trips, but only acted as a travel companion, but the two pieces of

additional evidence he cites for the claim do not support it. [DE 355-1 at ¶5; DE 371 at ¶33 Response.] LeSEA argues that the claim is at odds with Lester’s LinkedIn page description of his role and responsibilities. [DE 371 at ¶33 Response.] In 1994, Lester accompanied Dr. Sumrall on a trip to China. Although Lester was employed by LeSEA at the time, he nonetheless claims that he took the 1994 trip with Dr. Sumrall solely in his personal capacity as Dr. Sumrall’s grandson. [DE 354 at ¶23.]

Lester attests that he “was not asked to perform any official church duties on this trip.” [DE 355-1 at ¶41.] A photo taken during the China trip in 1994 features Dr. Sumrall with an elderly unidentified man (the “Traveler Photo”). [DE 354 at ¶13.] Lester has testified in his deposition and attested in a declaration that he took the Traveler Photo, using his personal Olympus Stylus camera. [DE 360-1 at 35 (96:20-23), 38 (102:21-23);

DE 355-1 at ¶¶34, 36.]

4 The roll of film containing the Traveler Photo included photographs of Lester taken by other people including local residents. [DE 354 at ¶14.] LeSEA has some negatives of photos taken on the 1994 trip to China, and argues that this is evidence that

the photos were taken on behalf of LeSEA and that Lester turned them in to LeSEA after his return. [DE 374 at ¶47 Response and ¶49 Response.] Lester also possesses some of the negatives of photos taken on the 1994 China trip. [DE 374 at ¶57.] Neither side has been able to produce the negative of the Traveler Photo itself. [DE 374 at ¶100.] Sometime in 1996 or 1997, LeSEA sent a copy of the Traveler Photo to a small

group of key church leaders and partners to shore up relationships after Dr. Sumrall’s death. [DE 354 at ¶15.] Prints of the Traveler Photo were signed by Stephen Sumrall (Dr. Sumrall’s son), then president of LeSEA, Inc., with the inscription “Galatians 6:9," placed in a frame, and accompanied by a letter from Stephen featuring the same biblical passage. [Id. at ¶16.] LeSEA later used the Traveler Photo as cover art for a DVD collection entitled A

Life of Faith and Destiny. [Id. at ¶17.] LeSEA’s business records indicate that the earliest sale of A Life of Faith and Destiny product occurred in 2007. [Id. at ¶18.] Family Broadcast Company used the Traveler Photo in connection with a 2018 donation campaign in which FBC sent copies of A Life of Faith and Destiny to donors who met a certain donation threshold. [Id. at ¶19.]

Lester’s cousin Andrew Sumrall is President and CEO of FBC and LeSEA, Inc. and board member of LeSEA Global Feed the Hungry. Andrew attests that LeSEA 5 Global “has never used the Traveler Photo.” [DE 340-2 at ¶6.] Stefan Radelich, President of LeSEA Global Feed the Hungry, also declares that “LeSEA Global has never used the Traveler Photo.” [DE 340-1 at ¶6.]

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