McKenzie-Morris v. V.P. Records Retail Outlet, Inc.

CourtDistrict Court, S.D. New York
DecidedOctober 31, 2022
Docket1:22-cv-01138
StatusUnknown

This text of McKenzie-Morris v. V.P. Records Retail Outlet, Inc. (McKenzie-Morris v. V.P. Records Retail Outlet, 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
McKenzie-Morris v. V.P. Records Retail Outlet, Inc., (S.D.N.Y. 2022).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT Boe CRON \LLY FILED ee [LATE FILED: 10/31/2022

SHAUNA MCKENZIE-MORRIS, ef. ai, : Plaintiffs, : 1:22-cv-1138-GHW -against- : : MEMORANDUM OPINION & V.P. RECORDS RETAIL OUTLET, INC,, ef a/, : ORDER Defendants. : XX GREGORY H. WOODS, United States District Judge: I. INTRODUCTION This case concerns copyright infringement allegations by a recording artist, brought on her own behalf and on the behalf of a business that she co-owns, against several defendants. But this order does not address the substance of Plaintiffs’ claims. Instead, it resolves something of a detour: Whether Plaintiffs’ request for judicial notice of certain documents, which this Court denied in August 2022, was sanctionable. Because Plaintiffs’ motion had no chance of success when filed, and because the Court repeatedly explained to Plaintiffs counsel why that was so in advance of filing, Plaintiffs’ judicial-notice motion violated Rule 11. Accordingly, Defendants’ motion for sanctions is GRANTED. Il. BACKGROUND’ In April 2022, Plaintiffs filed their amended complaint seeking injunctive and declaratory relief for Defendants’ alleged infringement of Plaintiffs’ copyrights in Plaintiff Shauna McKenzie- Mortis’s “written music, her recording services and her image, name and likeness on and in

1 As this order resolves only Defendants’ sanctions motion, this section discusses only the factual and procedural background most relevant to that motion.

connection with her musical compositions, albums, and sound recordings.” Dkt. No. 23 ¥ 3, see zd. 46. On May 24, 2022, Defendants moved to dismiss that complaint. Dkt. No. 26. On July 8, 2022, after the motion to dismiss was fully briefed, Plaintiffs filed a letter requesting that the Court take judicial notice of certain facts in a June 27, 2022 email exchange between music producer Kemar McGregor and John McQueeney, Sr., the Senior Director of Business Affairs at Defendant V.P. Records. Dkt. No. 40 at 1-2. While Plaintiffs averred that they did not ask the Court to take judicial notice of that exchange “for the truth of the matters asserted” in the emails, they simultaneously stated that the “request for judicial notice [was] to establish that there is a legitimate question of fact related to Plaintiffs’ claums and ownership rights.” Id. at 2. On July 12, 2022, the Court held a conference concerning Plaintiffs’ judicial-notice request. Dkt. No. 46. At that conference, Plaintiffs’ counsel Celeste N. McCaw stated that the request was to “Sudicially notice the existence of the disputed allegations” concerning Plaintiffs’ allesed ownership rights, and that such a “fact is capable of being verified under . . . [FJederal [RJule of [E]vidence 201.” Id. at 5:20-23. The Court expressed repeated skepticism that Ms. McCaw could submit a brief making that argument consistent with her obligations under Federal Rule of Civil Procedure 11, which requires counsel to have a “nonfrivolous basis for the application.” Id. at 6:24—7:4; see also id. at 7:18-20. The Court asked whether Ms. McCaw was asking the Court to consider the emails, which had been filed in another court, for “the fact that they are filed” or for their “content’’; in response, Ms. McCaw stated that the request was to establish that “there is a dispute between Mr. McGregor and VP records that relate to [P]laintiffs’ claims in this matter.” Id at 7:21-8:1. The set a briefing schedule for Plaintiffs’ proposed judicial-notice motion, but not before again stating its concern to Ms. McCaw “that the arguments that you’re about to put your signature behind may not rest on a really fully informed view of what the miles are about,” and again reminding counsel of her “obligations as an officer of the court and also under [R]ule 11 to make

sure that arguments presented are not frivolous.” Id. at 10:24—11:10; see also id. at 14:4—5 (again asking Ms. McCaw to “spend some time considering the legal basis for the motion and the arguments presented” before filing her anticipated motion). Ten days later, Plaintiffs filed their motion for judicial notice. Dkt. No. 45. That motion requested that, in evaluating Defendants’ motion to dismiss, the Court take judicial notice of four court documents—three complaints and one letter—that had been filed in four different cases. Id. at 1-2. Specifically, the motion requested that the Court take judicial notice of: (1) a letter to the court in Music Group, Inc. v. McGregor, No. 11-cv-2619 (E.D.N.Y. May 2, 2016), purportedly “notifying the Court that the language in [a] settlement agreement was incorrect by incorporating language that would not only transfer Mr. McGregor’s interest to VP Records but also the interests of third parties”; (2) an amended complaint in MV Music. v. VP Records, No. 20-cv-5524 (E.D.N-Y. Dec. 9, 2021), purportedly claiming that “[t]he established pattern and practice of VP [Records Retail Outlet, Inc. and V.P. Music Group Inc.| has been that they acquire the recordings from Jamaican Producers, exploit them in the US market without getting the proper or full clearance for the vocal performances given on the recordings”; (3) a complaint in V.P. Music Group, Inc. v. Tad’s Record, No. 08-cv-10431 (S.D.N-Y. Dec. 2, 2008), purportedly stating that “[o]n or about May 1, 2007 VP Music entered into an exclusive recording artist agreement with the recording artist Shauna McKenzie, professionally known as “Etana’ (the ‘Etana Agreement’), which agreement granted VP Music exclusive rights in and to Etana’s recording services, and the ownership of all rights to all sound recordings made during the term of the agreement’; and (4) a complaint filed in McGregor v. VP Records, No. 17-cv-3917 (S.D. Fla. Jan. 30, 2017), purportedly stating that VP Records “wrongfully amended filed copyrights to the sound recording, masters, lyrics and productions as ‘works for hire’ wholly owned by their companies, STB Music Inc and VP Records.” Dkt. No. 45 at 1—2 (internal citations omitted).

In their motion, as in their initial letter concerning judicial notice, Plaintiffs again stated that they understood that these documents could be considered “not for the truth of the matters asserted in the other litigation but rather to establish the fact of such litigation and related filings.” Id. at 3 (quoting Glob. Network Comme'ns, Inc. v. City of New York, 458 F.3d 150, 157 (2d Cir. 2006)). But— again, as in their initial letter—Plaintiffs also stated that the purpose of their request for judicial notice was to “establish that there is a legitimate question of fact related to Plaintiffs’ claims and ownership.” Id. at 4. On August 19, 2022, Defendants opposed Plaintiffs’ motion. Dkt. No. 48. They argued that the only way that the court-filed documents could “establish that there [was] a legitimate question of fact related to Plaintiffs’ claims and ownership rights” was “if the Court accept[ed] the unproven assertions they contain as true.” Id. at 3 (quoting Dkt. No. 45 at 4). Defendants also noted that while Plaintiffs included quotes from the documents that they requested the Court to take notice of, Plaintiffs did not explain, for each quoted statement, the purpose for which they asked the Coutt to take judicial notice. Id. at 3-4. And Defendants argued that binding authority plainly foreclosed Plaintiffs’ request for judicial notice, which in practice asked the Court to judicially notice the documents for the truth of the matters asserted in them. Id. at 5—7. Plaintiffs replied on August 26, 2022, arguing that they asked the Court to take notice of certain documents not “for the truth of their contents, but rather to demonstrate what the documents stated.” Dkt. No. 50 at 1 (internal quotation omitted). On August 31, 2022, the Court held a conference to resolve Plaintiffs’ motion for judicial notice.

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Bluebook (online)
McKenzie-Morris v. V.P. Records Retail Outlet, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mckenzie-morris-v-vp-records-retail-outlet-inc-nysd-2022.