Mattel, Inc. v. Bryant

441 F. Supp. 2d 1081, 2005 U.S. Dist. LEXIS 3568, 2005 WL 4541918
CourtDistrict Court, C.D. California
DecidedMarch 4, 2005
DocketCV 04-9059 NM (RNBX)
StatusPublished
Cited by14 cases

This text of 441 F. Supp. 2d 1081 (Mattel, Inc. v. Bryant) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mattel, Inc. v. Bryant, 441 F. Supp. 2d 1081, 2005 U.S. Dist. LEXIS 3568, 2005 WL 4541918 (C.D. Cal. 2005).

Opinion

ORDER DENYING PLAINTIFF MATTEL, INC.’S MOTION TO REMAND AND CERTIFYING QUESTION FOR INTERLOCUTORY REVIEW

MANELLA, District Judge.

I. INTRODUCTION

On April 27, 2004, Mattel, Inc. (“Mattel”), the world’s largest manufacturer and marketer of toys, dolls, games, and stuffed toys and animals, filed the instant Complaint against its former employee, Carter Bryant (“Bryant”), in the Superior Court for the County of Los Angeles. The Complaint fails to state the amount in controversy and asserts generically-phrased causes of action for: (1) breach of contract; (2) breach of fiduciary duty; (3) breach of duty of loyalty; (4) unjust enrichment; and (5) conversion. On May 14, 2004, Bryant filed a Notice of Removal. On August 20, 2004, the court granted Mattel’s motion to remand, finding that Bryant had failed to demonstrate the presence of either federal question jurisdiction or diversity jurisdiction. On November 2, *1085 2004, Bryant filed a second Notice of Removal. On December 7, 2004, MGA Entertainment (“MGA”), pursuant to stipulation and order, intervened as a defendant. Pending before the court is Mattel’s Motion to Remand.

II. FACTUAL & PROCEDURAL BACKGROUND

A. Allegations in Mattel’s Complaint Mattel employed Bryant as a product designer from September 1995 through April 1998, and from January 1999 through October 2000. Compl. ¶ 9. Upon starting his second term, Bryant signed an Employee Confidential Information and Inventions Agreement, in which he agreed not to “engage in any employment or business other than for [Mattel], or invest or assist (in any manner) any business competitive with the business or future business plans of [Mattel].” Id. ¶ 10. Bryant assigned to Mattel all rights, title, and interest in the “inventions” he conceived of, or reduced to practice, during his employment. Id.

Bryant also completed Mattel’s Conflict of Interest Questionnaire. Id. ¶ 11. Bryant certified that he had not worked for any of Mattel’s competitors in the prior twelve months and had not engaged in any business dealings creating a conflict of interest. Id. Bryant agreed to notify Mattel of any future events raising a conflict of interest. Id.

The Complaint asserts that, “[i]n late November 2003, Mattel learned that Bryant had secretly aided, assisted and worked for a Mattel competitor ... by entering into an agreement with the competitor, during the time [he] was employed by Mattel ....” Id. ¶ 12. “Bryant’s agreement with the competitor obligated Bryant to provide product design services to the competitor on a ‘top priority’ basis.” Id. Furthermore, it “provided ... that Bryant would receive royalties and other consideration for sales of products on which [he] provided aid or assistance; that all work and services furnished by Bryant to the competitor under the agreement would be considered ‘works for hire’; and that all intellectual property rights to preexisting work by Bryant purportedly would be assigned to the competitor.” Id. The Complaint also alleges that “Bryant converted, misappropriated and misused Mattel property and resources for the benefit of, and to aid and assist, Bryant personally and Mattel’s competitor.” Id.

In support of its first motion to remand, Mattel provided a copy of this agreement between Bryant and MGA. See Zeller Deck, Ex. 9 (MGA Agreement). Pursuant to the agreement, signed September 18, 2000, Bryant agreed to provide product design services for MGA’s line of “Bratz” dolls (the “Bratz”). Id. 1 In return, MGA agreed to pay Bryant $5,500 per month for the first six months and $5,000 per month for the next three months. Id. MGA also agreed to pay Bryant a 3% royalty on the Bratz he worked on. Id.

B. The First Notice of Removal

On May 14, 2004, pursuant to 28 U.S.C. § 1441, Bryant filed his first notice of removal. 2 Bryant argued that this court had subject matter jurisdiction under both 28 *1086 U.S.C. § 1331 (federal question jurisdiction) and 28 U.S.C. § 1332 (diversity jurisdiction). 3 First, Bryant asserted that the court had jurisdiction under § 1331 because Mattel’s claims likely implicated the rights to the Bratz and, therefore, would “require construction of federal intellectual property laws .... ” Opp. to First Mot. to Remand at 11. Second, Bryant contended that the court had jurisdiction under § 1332 because he was of diverse citizenship from Mattel and the rights to the Bratz, worth “millions,” were in controversy. Id. at 1-2, 5-6.

On June 14, 2004, Mattel filed a motion to remand, arguing it did not know whether the Bratz were in controversy because it did not know whether Bryant developed the Bratz while still employed by Mattel. See, e.g., July 12, 2004 Rep. at 4 (disclaiming knowledge of “whether rights to Bratz are indeed at stake here”).

C. August 20, 200k Order

On August 20, 2004, the court granted Mattel’s motion to remand, finding that Bryant had failed to demonstrate the presence of subject matter jurisdiction. First, the court found that Bryant had failed to demonstrate federal question jurisdiction because the face of the Complaint asserted only state law claims. See Aug. 20, 2004 Order at 8. Second, the court found that Bryant had failed to demonstrate diversity jurisdiction because he had not shown that the rights to the Bratz were in controversy. See id. at 6.

D. Events Occurring Between the First and Second Notices of Removal

On August 12, 2004, Mattel produced to Bryant a July 18, 2003 Wall Street Journal article that suggested Bryant had copied a scrapped Mattel project, known as “Toon Teens,” in creating the Bratz. Not. of Removal ¶ 21. 4

*1087 On August 16, 2004, upon Bryant’s specific request, Mattel produced to Bryant drawings of the Toon Teens. Jacoby Decl. ¶5. Mattel also produced the copyright registration for the Toon Teens drawings filed November 28, 2003, four years after the drawings were allegedly created. Not. of Removal ¶ 21; Zeller Decl. ¶ 27. 5 Mattel had failed to produce these documents in response to Bryant’s June 14, 2004 comprehensive Request for Production. Jacoby Decl. ¶ 5; Zeller Decl., Ex. 36; Second Zeller Decl., Ex. 6. 6

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Bluebook (online)
441 F. Supp. 2d 1081, 2005 U.S. Dist. LEXIS 3568, 2005 WL 4541918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mattel-inc-v-bryant-cacd-2005.