LeSEA Inc v. LeSEA Broadcasting Corporation

CourtDistrict Court, N.D. Indiana
DecidedMarch 6, 2024
Docket3:18-cv-00914
StatusUnknown

This text of LeSEA Inc v. LeSEA Broadcasting Corporation (LeSEA Inc v. LeSEA Broadcasting Corporation) 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
LeSEA Inc v. LeSEA Broadcasting Corporation, (N.D. Ind. 2024).

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 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 This case has been both tortuous and torturous. After nearly five years of relentless litigation, in August 2023, I issued two opinions resolving all remaining claims in this case. [DE 386, 387.] For present purposes, familiarity with those opinions

is assumed. The opinions resolved the counterclaims and third-party claims of the Lester Sumrall Family Trust1 and Lester Sumrall (“plaintiffs” for purposes of this opinion) against counterclaim defendants and third-party defendants LeSEA, Inc., Family Broadcasting Corporation, LeSEA Global Feed the Hungry, Inc., Adam Sumrall, Stephen Sumrall, David Sumrall, Angela Grabowski, and Andrew Sumrall. [DE 386,

387.] Defendants were granted summary judgment with respect to the Trusts’ remaining claims. [DE 386 at 28.] Defendants were also granted summary judgment on the remaining claim of Lester Sumrall individually. [DE 387 at 18.] Following the entry of judgment, plaintiffs filed a notice of appeal and the appeal remains pending. [DE 398.] Defendants filed a bill of costs in the amount of $14,319.60, which was taxed without objection. [DE 390, 400.] Before me now are two motions by

defendants seeking an award of attorney’s fees. Fee-Shifting Under the Copyright Act and Indiana Right of Publicity Law Under what is called the “American Rule,” the parties in civil cases presumptively bear their own attorney’s fees unless there is specific statutory or other authority for shifting the prevailing party’s fees to the losing party. See City of San

1 The Trust asserts the claims of Frank Sumrall, based on his rights of inheritance from his father, Dr. Lester Sumrall. Plaintiff Lester is the son of Frank and grandson of Dr. Sumrall. 2 Antonio, Texas v. Hotels.com, L.P., 539 U.S. 330, 332 (2021); Hardt v. Reliance Standard Life Ins. Co., 560 U.S. 242, 253 (2010). The first of defendants’ two motions is their Motion for Attorney’s Fees Under 17 U.S.C. §505 and Indiana Code §32-36-1-12. [DE 391.] Defendants invoke the Copyright Act because both the Trust and Lester Sumrall

individually brought claims of copyright infringement. Section 101 of the Copyright Act of 1976 authorizes a district court to “award a reasonable attorney’s fee to the prevailing party as part of the costs.” 17 U.S.C. §505. The Supreme Court has observed that “[u]nlike many fee-shifting statutes, which entitle prevailing plaintiffs to recover fees as matter of course but allow prevailing defendants to recover fees only if the suit

was frivolous, §505 treats both sides equally and allows an award in either direction.” Fogerty v. Fantasy, Inc., 510 U.S. 517 (1994). “Since Fogerty we have held that the prevailing party in copyright litigation is presumptively entitled to reimbursement of its attorneys’ fees.” Riviera Distributors, Inc. v. Jones, 517 F.3d 926, 928 (7th Cir. 2008), citing Woodhaven Homes & Realty, Inc. v. Hotz, 396 F.3d 822, 824 (7th Cir. 2005). See also UIRC-GSA Holdings, LLC v. William Blair & Company, L.L.C., 90 F.4th 908, 918 (7th Cir.

2024). Here the defendants were the prevailing parties and are entitled to an award of attorney’s fees under the Copyright Act. Mostly Memories, Inc. v. ForYour Ease Only, Inc., 526 F.3d 1093, 1099 (7th Cir. 2008). Plaintiffs have filed no opposition to the motion for a fee award under §505. The lack of opposition gives me no occasion to consider any

factors that might weigh against a fee award. “[W]hen denying a prevailing copyright 3 defendant his attorney’s fees, a district court’s discretion is very narrow. Time and again we have declared that ‘prevailing defendants in copyright cases are presumptively entitled (and strongly so) to recover attorney fees.’” Live Face on Web, LLC v. Cremation Society of Illinois, Inc., 77 F.4th 630, 632 (7th Cir. 2023), quoting

Woodhaven, 896 F.3d at 824. The strength of the presumption may explain plaintiffs’ decision not to file any response to defendants’ motion. In addition to the federal Copyright Act, defendants motion invokes Indiana Code §32-36-1-12 because one of the Trust’s counterclaims was for a violation of the Indiana right of publicity. I.C. §32-36-1-12(1) provides that in a case under Indiana’s

Rights of Publicity statute, “the court...shall award to the prevailing party reasonable attorney’s fees, costs and expenses relating to an action under this chapter.” On October 21, 2021, I granted defendants’ motion for judgment on the pleadings as to the Trust’s right of publicity claim and dismissed it with prejudice. [DE 271 at 4-5, 8.] The Trust made several subsequent unsuccessful efforts to reverse this decision. [DE 280, 307, 309, 316.] Defendants are clearly the prevailing parties on the Trust’s right of publicity

claim, and the mandatory “shall” in the applicable Indiana statute appears to be determinative as to their right to recover reasonable attorney’s fees relating to the action. Because defendants’ entitlement to fees is established under the applicable statutes, “[t]he only consideration...is the reasonableness of the fees.” Spellan, 59 F.3d at

645. Claims based in copyright were two of the Trust’s eight counterclaims, and one of 4 Lester’s two. Indiana’s right of publicity was the basis for a single counterclaim by the Trust. So I have to consider the propriety and fairness of imposing all of defendants’ attorney’s fees on plaintiffs when the authority for doing so underlies only four of the ten counterclaims. Defendants have addressed this in their motion [DE 392 at 5], citing

Mendocino Game Company, Inc. v. Warren Industries, Inc., No. 1:02-CV-289-TS, 2006 WL 8451808, *5 (N.D.Ind. June 1, 2006). There Judge Springmann, dealing with a prevailing copyright plaintiff rather than a defendant, observed that when determining an award of attorney’s fees the lodestar may be adjusted on consideration whether the plaintiff failed to prevail on claims that were unrelated to the claims on which he succeeded.

She quoted the Seventh Circuit: “[W]ith unsuccessful but related claims – that is, claims related to prevailing claims by a common core of facts or based on related legal theories – the court must...concentrate on overall results obtained. If the plaintiff has achieved only partial success...compensating the plaintiff for all hours expended on the litigation may be excessive.” Spellan v. Bd. of Educ.

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LeSEA Inc v. LeSEA Broadcasting Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lesea-inc-v-lesea-broadcasting-corporation-innd-2024.