Oliver v. Meow Wolf, Inc

District Court, D. New Mexico·Decided September 7, 2023·No. 1:20-cv-00237·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO

LAUREN ADELE OLIVER,

Plaintiff,

v. Civ. No. 20-237 KK/SCY

MEOW WOLF, INC., et al.,

Defendants.

MEMORANDUM OPINION AND ORDER

THIS MATTER is before the Court on Plaintiff’s Motion for Partial Summary Judgment (Doc. 393), filed April 29, 2022. The Court, having reviewed the parties’ submissions, the record, and the relevant law, and being otherwise sufficiently advised, FINDS that the motion is not well- taken and should be DENIED. I. Relevant Procedural History1 The parties’ disputes in this matter arise out of Plaintiff’s installation of a work of art called Ice Station Quellette (“ISQ”) in a permanent exhibition in Santa Fe, New Mexico, called the House of Eternal Return (“HoER”). (Docs. 148, 183.) Defendant Meow Wolf, Inc. (“MWI”) currently operates the HoER, and Defendant Vince Kadlubek was formerly its CEO. (Id.; Doc. 348-3 at 2.) Plaintiff filed her original complaint against Defendants on March 16, 2020, asserting claims for breach of contract as well as other federal and state law claims. (Doc. 1 at 1-2, 15-21.) On June 1, 2021, Plaintiff filed an amended complaint that includes additional state law claims and factual allegations. (Doc. 148.) Defendant MWI then filed a declaratory judgment counterclaim on July

1 The parties are familiar with this matter’s factual background, which the Court has described in prior orders and will not repeat here. (See Doc. 59 at 1-4, Doc. 135 at 1-4, Doc. 325 at 1-3, and Doc. 499 at 2-6.)

6, 2021, admitting that it entered into a contract with Plaintiff but asserting substantially different contractual terms. (Doc. 183.) On April 19, 2022, Defendants filed a motion seeking summary judgment on, inter alia, Plaintiff’s and Defendant MWI’s competing contractual claims. (Doc. 362 at 1, 16-26, 31-32.) Plaintiff, in turn, filed the motion presently before the Court on April 29, 2022, seeking summary

judgment on Defendant MWI’s contractual counterclaim. (Doc. 393.) Both sides’ motions were fully briefed by September 12, 2022. (Docs. 414, 421, 426, 432, 486-1; Doc. 499 at 13-14, 42.) On March 28, 2023, the Court issued a Memorandum Opinion and Order (“March 2023 Order”) on Defendants’ motion for summary judgment on the parties’ respective contractual claims. (Doc. 540.) In its March 2023 Order, the Court granted Defendants summary judgment on Plaintiff’s breach of contract claims, (id. at 17-23, 42-43), but denied their request for summary judgment on Defendant MWI’s counterclaim. (Id. at 23-27, 42-43.) II. Analysis A. Legal Standards Governing Summary Judgment

“Summary judgment is appropriate if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Jones v. Kodak Med. Assistance Plan, 169 F.3d 1287, 1291 (10th Cir. 1999) (quotation marks omitted); Fed. R. Civ. P. 56(a). “A dispute is genuine when the evidence is such that a reasonable [factfinder] could return a verdict for the nonmoving party, and a fact is material when it might affect the outcome of the suit under the governing substantive law.” Bird v. W. Valley City, 832 F.3d 1188, 1199 (10th Cir. 2016) (quotation marks and brackets omitted). Only material factual disputes preclude the entry of summary judgment. Atl. Richfield Co. v. Farm Credit Bank of Wichita, 226 F.3d 1138, 1148 (10th Cir. 2000). If the nonmovant demonstrates a genuine dispute as to material facts, the Court views the facts in the light most favorable to the nonmovant. Ricci v. DeStefano, 557 U.S. 557, 586 (2009). However, the Court will not draw “unreasonable inferences that are unsupported by the record.” Est. of Redd ex rel. Redd v. Love, 848 F.3d 899, 906 (10th Cir. 2017); Wellington v. Daza, No. 21-2052, 2022 WL 3041100, at *2 (10th Cir. Aug.

2, 2022), cert. denied, 143 S. Ct. 788 (2023). A summary judgment movant bears the initial burden of demonstrating the absence of a genuine issue of material fact and its entitlement to a judgment as a matter of law. Adler v. Wal- Mart Stores, Inc., 144 F.3d 664, 670-71 (10th Cir. 1998). When the nonmovant would bear the burden of proof at trial, the movant may meet its initial summary judgment burden by submitting “affirmative evidence that negates an essential element of the nonmoving party’s claim” or by demonstrating “that the nonmoving party’s evidence is insufficient to establish an essential element of the nonmoving party’s claim.” Tesone v. Empire Mktg. Strategies, 942 F.3d 979, 994 (10th Cir. 2019). If the movant meets this initial burden, “the burden then shifts to the nonmovant,”

id., who must “go beyond the pleadings and set forth specific facts that would be admissible in evidence in the event of trial from which a rational trier of fact could find for the nonmovant … by reference to affidavits, deposition transcripts, or specific exhibits incorporated therein.” Adler, 144 F.3d at 671 (quotation marks omitted). B. Material Facts The following facts are not genuinely disputed for purposes of the present motion, except as specifically noted. The Meow Wolf artist collective began in 2008 but, except for a “Meow Wolf” non-profit corporation organized by Defendant Kadlubek and two others in February 2008 and revoked in June 2008,2 it was not associated with a “formed legal entity” until the organization of Meow Wolf, LLC (“MW LLC”). (Doc. 298-1 at 3; Doc. 330-3 at 3; see also Doc. 297 at 2.) The parties have not identified any evidence indicating how many artists were members of the collective at any given time or how they were selected. (Docs. 393, 414, 426; see also Doc. 278-4 at 24 (“Plaintiff’s understanding is that the membership in the collective changed over time.”).)

MW LLC was formed in September 2011.3 This company was funded with the proceeds of an art show by the Meow Wolf artist collective in which Plaintiff did not participate. (Doc. 278- 4 at 8, 20-21, 23-24; Doc. 298-1 at 4-5; Doc. 298-18 at 2.) An unexecuted operating agreement lists Defendant Kadlubek, Matt King, Corvas Brinkerhoff, Emily Montoya, and Caity Kennedy as the company’s founding members. (Doc. 298-7 at 2, 3, 15.) However, Defendant Kadlubek testified that the collective elected him as the company’s sole member. (Doc. 298-6 at 3-5.) VCMSE Art City, LLC (“Art City”) was formed in October 2014.4 Art City did business as “Meow Wolf” and its stated purpose was “to open and operate art centers in Santa Fe, New Mexico and possibly in other locations.” (Doc. 298-11 at 2.) On January 15, 2015, Art City

obtained a taxpayer identification number from the New Mexico Taxation and Revenue Department. (Doc. 412-1 at 1.) The company originally had six equity holders, i.e., Defendant

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