Lynn v. Sure-Fire Music Co.

237 F. App'x 49
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 6, 2007
Docket06-5358
StatusUnpublished
Cited by2 cases

This text of 237 F. App'x 49 (Lynn v. Sure-Fire Music Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lynn v. Sure-Fire Music Co., 237 F. App'x 49 (6th Cir. 2007).

Opinion

RYAN, Circuit Judge.

The plaintiff, Loretta Lynn, the famed country music artist, brought suit in a Tennessee state court against the defendant, Sure-Fire Music Company, Inc., asserting multiple state law claims arising from a contract governing copyrights to music Lynn has composed. The state court dismissed Lynn’s complaint on the grounds that the federal Copyright Act preempted Lynn’s state law claims. She then filed suit in federal district court alleging the same state law causes of action the state trial court found were preempted. However, the district court held that Lynn’s state law claims are not preempted by the Copyright Act, and therefore, must be dismissed because, without preemption, the court did not have subject matter jurisdiction. Although it “won” in the district court, in the sense that the lawsuit against it was dismissed, Sure-Fire appealed, arguing that the district court erred in holding that Lynn’s claims were not preempted by the Copyright Act and, therefore, the court was without subject matter jurisdiction. We now affirm.

I.

Lynn entered into an agreement with Sure-Fire in 1961 whereby Sure-Fire would receive worldwide copyright interests in music composed by Lynn in exchange for paying Lynn royalties. In 1966, Lynn and Sure-Fire executed a new agreement with the same basic terms plus one notable additional provision. The new agreement provided that it “shall be null and void in the event there is a change of ownership in Sure-Fire Music Company, Inc., it being ... [Lynn’s] demand[ ] that she be associated only with current management.” At the time of this 1966 Agreement, brothers Doyle, Teddy, Leslie, and Lester Wilburn owned Sure-Fire. By 2003, only two of these four brothers controlled Sure-Fire, and thereafter, other family members took over the business.

Lynn believed that the new ownership triggered the “null and void” provision of the 1966 Agreement. She sued Sure-Fire in a Tennessee state court, raising six claims: (1) a request for a declaratory judgment that under the 1966 Agreement she now owns the copyrights to her compositions; (2) an action to recover certain master and demonstration recordings in Sure-Fire’s possession; (3) conversion; (4) willful and malicious breach of contract by Sure-Fire for failing to renew certain copyrights and failing to collect and distribute foreign royalties; (5) breach of implied duty of good faith and fair dealing; and (6) a request for an accounting of all foreign royalties.

The state court dismissed the complaint for lack of subject matter jurisdiction, holding that the Copyright Act preempted Lynn’s claims. The court found that the claims were “based upon a determination of copyright ownership and exploitation of copyrighted material” and concluded that Lynn could bring her claims only in federal court.

Lynn then filed this action in federal district court, raising the exact same six claims she pleaded in state court. She also filed a motion asking the court to determine whether it had subject matter jurisdiction. Sure-Fire responded with a motion to dismiss on the sole and specific ground that the Copyright Act preempted Lynn’s state law claims. In an opinion *52 from the bench, the district court found Lynn’s state law claims were not preempted and dismissed the complaint against Sure-Fire, without prejudice, for lack of subject matter jurisdiction. Sure-Fire, although it “prevailed” below, appeals, arguing that the district court indeed had jurisdiction of the case because the Copyright Act completely preempts Lynn’s state law claims.

II.

Lynn challenges Sure-Fire’s standing to bring its appeal, arguing that since SureFire successfully obtained a dismissal of the action against it in the district court, it has prevailed and is not aggrieved by the district court’s judgment. Lynn argues correctly that one has standing to appeal only if “aggrieved by the judicial action from which” the appeal is taken. Vanguards of Cleveland v. City of Cleveland, 753 F.2d 479, 484 (6th Cir.1985). However, a “prevailing” party may nevertheless be aggrieved if the judgment entered in its favor was not on the ground for which it sought dispositive relief, but instead, was erroneously grounded in a ruling that misstates the law and leaves the appealing party open to further liability. Stated differently, there are circumstances in which a defendant, although “winning” the lawsuit in the trial court — in the sense that the case against it was dismissed — has standing to appeal the trial court’s decision because, for example, the appellant is erroneously denied the legal ruling it requested in its motion for summary judgment or for dismissal. In such an instance, the winning/appealing party continues to stand exposed to liability it should not, and would not, have faced, but for the trial court’s erroneous application of the law. Sure-Fire is just such a party.

Having been sued in federal court on state law theories of contract and tort, Sure-Fire defended on the ground that Lynn’s state law claims do not he, because they are preempted by the Copyright Act. The district court held just the opposite and, as a result, Sure-Fire argues, it is aggrieved. It now faces liability under multiple theories of Tennessee law and is denied the defenses available to it under the Copyright Act, including the right to litigate the issues in federal court.

We are satisfied that Sure-Fire has made a colorable showing that it is aggrieved by the district court’s determination that it has no subject matter jurisdiction over this lawsuit and therefore has established the necessary standing to invoke our appellate jurisdiction. We have not overlooked Lynn’s additional arguments, challenging our jurisdiction to hear this appeal, however, we conclude that they are without merit.

III.

We turn now to the substantive question whether the district court erred in holding that Lynn’s claims were not preempted by the Copyright Act and that, as a result, the court was without subject matter jurisdiction. We review a district court order dismissing a case for lack of subject matter jurisdiction de novo. Sutton v. St. Jude Med. S.C., Inc., 419 F.3d 568, 570 (6th Cir.2005) (citing Joelson v. United States, 86 F.3d 1413, 1416 (6th Cir.1996)). We think the district court did not err and we will, therefore, affirm.

As a general rule, a federal court has subject matter jurisdiction if the plaintiffs complaint invokes federal law as the basis for the relief requested. Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). Lynn’s complaint invokes no federal law — constitutional, statutory, or otherwise — and alleges only state law claims, strongly suggesting *53 that this case belongs in the state court where Lynn filed it in the first place.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Vanderbilt Univ. v. Scholastic, Inc.
382 F. Supp. 3d 734 (M.D. Tennessee, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
237 F. App'x 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lynn-v-sure-fire-music-co-ca6-2007.