Needbasedapps, LLC v. Robbins Research International, Inc.

926 F. Supp. 2d 907, 2013 WL 670773, 2013 U.S. Dist. LEXIS 24191
CourtDistrict Court, W.D. Texas
DecidedFebruary 20, 2013
DocketCv. No. SA:12-CV-00291-DAE
StatusPublished
Cited by2 cases

This text of 926 F. Supp. 2d 907 (Needbasedapps, LLC v. Robbins Research International, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Needbasedapps, LLC v. Robbins Research International, Inc., 926 F. Supp. 2d 907, 2013 WL 670773, 2013 U.S. Dist. LEXIS 24191 (W.D. Tex. 2013).

Opinion

ORDER: (1) GRANTING DEFENDANTS’ MOTION TO TRANSFER ACTION TO THE CENTRAL DISTRICT OF CALIFORNIA; (2) DENYING AS MOOT DEFENDANTS’ ALTERNATIVE MOTIONS; (3) DENYING AS MOOT PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION; AND (i) DENYING AS MOOT PLAINTIFF’S MOTION FOR REFERRAL TO MEDIATION

DAVID ALAN EZRA, Senior District Judge.

On February 15, 2013, the Court heard oral argument on the Motion for Preliminary Injunction filed by Plaintiff Needbasedapps, LLC (“Plaintiff’ or “NBA”) (doc. # 8); NBA’s Motion for Referral to Mediation (doc. # 15); and various alternative motions — a Motion to Dismiss or Transfer Action Pursuant to “First Filed” Rule, an Alternative Motion to Dismiss or Transfer Based on Improper Venue, an Alternative Motion to Transfer Pursuant to 28 U.S.C. § 1404(a), and an Alternative Motion to Stay Proceedings Pending Rulings in First-Filed Case — filed by Steven Paul Doyle, Anthony “Tony” Robbins, and Robbins Research International, Inc. (collectively, “Defendants”) (doc. # 10). Robert L. Chaiken, Esq., and R. Laurence Macon, Esq., appeared at the hearing on behalf of Plaintiff; Bruce K. Spindler, Esq., and Linda S. McDonald, Esq., appeared at the hearing on behalf of Defendants. For the reasons that follow, the Court GRANTS Defendants’ Motion to Dismiss or Transfer Action Pursuant to “First Filed” Rule (doc. # 10 at 3-5) and TRANSFERS this case to the United States District Court for the Central District of California; DENIES AS MOOT Defendants’ remaining alternative motions for dismissal, transfer, or stay (doc. # 10 at 5-13); DENIES AS MOOT Plaintiffs Motion for Preliminary Injunction (doc. # 8); and DENIES AS MOOT Plaintiffs Motion for Referral to Mediation (doc. # 15).

BACKGROUND

I. Events Precipitating This Litigation

Plaintiff Needbasedapps, LLC (“NBA”) is a Texas limited liability company. Defendant Robbins Research International, Inc. (“RRI”) is a marketing firm incorporated in Nevada, with its primary place of business in California. (Doc. # 10-1 at 1.) RRI promotes and sells personal coaching services and motivational products. (Id.) Defendant Anthony “Tony” Robbins (“Robbins”) is RRI’s Chairman. (Id.)

In October or November of 2010, RRI and NBA entered into discussions about NBA developing iPhone, iPad, Mac Desktop, and web-based applications for RRI (collectively, “the applications”). (Doc. # 1 Ex. A ¶ 9; doc. # 10 App. C ¶¶ 9-11.) The parties did not execute a written contract. (Doc. # 10 App. C ¶ 9; doc. # 1 Ex. A ¶¶ 14-15.) Nevertheless, in January or February of 2011, RRI allegedly “loaned” $20,000 to NBA “to offset certain costs of developing the iPhone application and the iPad application.” (Doc. 10-1 ¶ 9.) Then, on February 9, 2011, a representative of NBA indicated in an email that NBA was [910]*910“short on cash” and requested “some kine [sic] of an agreement or written statement” that NBA could show potential investors.” (Doc. # 10 App. E, Ex. A; doc. # 10-1 ¶ 11.) In response to this request, RRI and NBA began to negotiate a term sheet, allegedly reaching agreement on a Summary of Terms (“SOT”) in May 2011. (Doc. # 10 App. C ¶ 12.)

RRI claims that the SOT established, among other things, that (1) “upon RRI’s acceptance of an Application, any and all discoveries, inventions, improvements, trade secrets, know-how, works of authorship or other intellectual property ... incorporated into the application would become ... the sole and exclusive property of the RRI” (id. ¶ 12(d)(i)); (2) that “all original works of authorship protectable by copyright [were] ‘works for hire’ owned by RRI” (id. ¶ 12(d)(ii); (3)) that Defendant would facilitate all necessary transfers and licenses of intellectual property to RRI if any third party provided services to develop the applications (id. ¶ 12(d)(iii)); and (4) that the parties would eventually “negotiate and draft a long-form contract” (id. ¶ 12). However, the parties do not dispute that the SOT was never executed and that no long-form contract was ever signed. (Id. ¶ 13; doc. # 1 Ex. A ¶¶ 14-15; doc. # 20 at 2.)

Despite the parties’ failure to execute the SOT or a long-form contract, NBA began developing the applications and hired Steven Doyle (“Doyle”) as a programmer. (Doc. # 1 Ex. A ¶¶ 11-12; doc. # 10 App. A ¶ 12.) Both parties acknowledge that RRI advertised to customers that certain of the applications would be available for sale at a “Date with Destiny” event on December 17, 2011, and subsequently at a “Business Mastery Seminar” on January 20, 2012. (Doc. # 10 App. C ¶¶ 16-18; doc. # 1 Ex. A ¶¶ 14-15.) However, NBA did not deliver the applications by those dates. (Doc. # 10 App. C ¶¶ 17-19; doc. # 1 Ex. A ¶¶ 14-15.) RRI claims that NBA represented that the applications would be completed in time for the events (doc. # 10 App. C ¶¶ 16-17) and that NBA’s failure to deliver the applications forced RRI to offer attendees at the Business Mastery Seminar alternative compensation amounting to $192,000 (id. ¶ 19).

On January 3, 2012, apparently over a year after he began working on the applications, Doyle signed a letter agreement with NBA. (Doc. # 1 Ex. A ¶ 16.) The agreement purported to define all software and other materials developed by Doyle as “works for hire” that belonged to NBA under copyright law. (Doc. # 10 App. C ¶ 21; Doc. # 1 Ex. A ¶ 16.) The agreement also prohibited Doyle from performing any services for RRI for a period of one year after the termination of his contract with NBA. (Doc. # 10 App. C ¶ 26; doc. # 1 Ex. A ¶ 16.) RRI alleges that NBA “induced Doyle to enter into the letter agreement based on the false representation that [it] was required by [NBA’s] agreement with RRI.” (Doc. # 10 App. C ¶ 25.)

According to RRI, on January 22, 2012, NBA’s counsel, Michael Paradise (“Paradise”), informed RRI’s counsel, Frederick Gartside (“Gartside”), that NBA would not deliver the applications to RRI. (Doc. # 10 App. C ¶29.) Paradise allegedly told Gartside that “RRI would have no choice but to buy-out [NBA].” (Id.) RRI further alleges that on January 24, 2012, Paradise demanded that RRI pay $900,000 to buy NBA’s rights to the applications. (Id.) On January 25, 2012, Doyle and RRI entered into a written contract whereby Doyle assigned his rights and interest in the applications to RRI. (Doc. # 10 App. C ¶ 31; doc. # 1 Ex. A ¶ 18.)

[911]*911II. Initiation of the California and Texas Actions

On January 30, 2012, RRI filed a complaint against NBA in the United States District Court for the Central District of California. See Robbins Research Int’l, Inc. v. NeedBasedApps, LLC, et al, No. 2:12-cv-00797-GW-JEM (C.D.Cal. Jan. 30, 2012) [hereinafter “California action”]; see also doc. # 10 App. A. The complaint included claims for breach of contract, intentional and negligent misrepresentation, and declaratory relief. (Id.)

On February 20, 2012, NBA filed a lawsuit against RRI and Robbins in Texas state court (“the Texas action”). (Doc. # 1 Ex. A.) The state court petition included claims for breach of contract, tortious interference with a contract, conspiracy, misappropriation of trade secrets, and declaratory relief. (Id.) Then, on March 23, 2012, NBA filed in the California action a Motion to Dismiss for Lack of Personal Jurisdiction. (California action, doc.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
926 F. Supp. 2d 907, 2013 WL 670773, 2013 U.S. Dist. LEXIS 24191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/needbasedapps-llc-v-robbins-research-international-inc-txwd-2013.