Pebble Creek Homes, LLC v. Upstream Images, LLC

547 F. Supp. 2d 1214, 2007 U.S. Dist. LEXIS 96854, 2007 WL 5085806
CourtDistrict Court, D. Utah
DecidedOctober 5, 2007
Docket2:07-cv-00535
StatusPublished
Cited by3 cases

This text of 547 F. Supp. 2d 1214 (Pebble Creek Homes, LLC v. Upstream Images, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pebble Creek Homes, LLC v. Upstream Images, LLC, 547 F. Supp. 2d 1214, 2007 U.S. Dist. LEXIS 96854, 2007 WL 5085806 (D. Utah 2007).

Opinion

ORDER DENYING MOTIONS TO REMAND AND TO HOLD VOID STATE COURT ORDER

PAUL G. CASSELL, District Judge.

Now before the court are the Pebble Creek Parties’ motions to remand to Utah state court [# 6] and to hold void the state court order entered on July 25, 2007[# 11]. The Pebble Creek Parties argue that this court is without jurisdiction to consider the removed case. In addition, they contend that the state court was similarly without jurisdiction to enter an order denying their petition to nullify an allegedly wrongful lien.

The court, having reviewed the motions and the parties’ accompanying memoran-da, hereby DENIES both requests for the following reasons. First, the state quiet title claim is completely preempted by the Copyright Act — thereby providing this court with proper federal question jurisdiction — and joins with the remaining claims such that removal of the entire case is appropriate. And second, the state court’s signing and entering of its order nearly two weeks after its dispositive bench ruling was only a ministerial act that did not affect the adjudication of the parties’ dispute.

BACKGROUND

On June 12, 2007, the Upstream Images Parties filed an action in this court against Troy Naylor, PCH, Canyon View Development, LLC to enforce certain intellectual property rights regarding the alleged misappropriation of an elk image. 1 Thereafter, the Upstream Images Parties additionally caused several lis pendens to be filed on certain real property owned by the Pebble Creek Parties, and in response the Pebble Creek Parties filed a civil action in the Fourth Judicial District in and for Wasatch County, State of Utah, seeking to “quiet title” to the real property upon which the lis pendens were filed and to enforce Utah’s wrongful lien statutes. 2

The Pebble Creek Parties also filed a petition to nullify the liens, which Fourth District Judge Derek Pulían denied from the bench in a hearing on July 10, 2007 upon finding the lis pendens authorized under Utah law. At the conclusion of the hearing, Judge Pulían asked Thomas R. Lee, who argued the matter for the Upstream Images Parties, to prepare a proposed order reflecting the in-court ruling. Mr. Lee did so, and the proposed order was served via hand delivery and email on the Pebble Creek Parties’ counsel on July 13, 2007. Although the Pebble Creek Parties contest whether the proposed order was fully negotiated at the time of its submission on July 23, 2007, any objections they had were required to be filed with Judge Pulían on or before July 20, 2007, and the Upstream Images Parties were required to file the proposed order no later than July 23, 2007.

Also on July 23, 2007, the Upstream Images Parties filed a “Notice of Removal” and a “Notice of Filing of Removal” in the state court action. Two days later, on July 25, 2007, Judge Pulían performed the ministerial act of entering the formal, written order reflecting his earlier bench ruling at the July 10, 2007 hearing. And thereafter, *1217 the Pebble Creek Parties filed a motion to remand on August 15, 2007, as well as a motion to hold void the state court order on August 30, 2007.

DISCUSSION

(A) Removal of the State Court Action Was Proper

The court finds that the Upstream Images Parties properly removed the state court action in this case. Under 28 U.S.C. § 1441(a), “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by ... the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.” 3 To validly effect such removal, the defendants must file a notice of removal within thirty days after they receive a copy of the initial pleading. 4

The state court action at issue here is removable because the “quiet title” claim necessarily requires a decision under the Copyright Act. 5 Pursuant to § 301 of the Act, “all legal or equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright as specified in § 106 in works of authorship that ... come within the subject matter of copyright ... are governed exclusively by this title.... [N]o person is entitled to any such right or equivalent right in any such work under the common law or statutes of any State.” 6 § 106 provides, in turn, that a copyright owner has exclusive rights to produce and authorize all reproductions, derivatives, distributions, performances, and displays of the copyrighted work. 7 As a whole, this “complete preemption” doctrine “serves to re-characterize a state law claim ... as an action arising under federal law ... for purposes of the well-pleaded complaint rule” such that “removal is proper even though the complaint may not mention a federal basis of jurisdiction.” 8 And it is clear that such preemption applies where a state law claim seeks a “declaration” that an adverse party “has no rights” in an alleged copyrighted work. 9

Here, in the original intellectual property action filed in this court, the Upstream Images Parties seek and may receive an injunction affecting or an order requiring impoundment of the shutters bearing the allegedly copyrighted elk image. As a result, there is no way for the court to rule on the quiet title action request for “a determination and decree that Defendants hold no interest” in the shutters 10 without simultaneously determining whether the Upstream Images Parties have protectable copyright interests in the reproduction, *1218 distribution, and display of the contested elk image on those shutters.

Accordingly, and in line with the reasoning of Briarpatch, the court finds that the complete preemption doctrine applies to the Upstream Images Parties’ state quiet title claim, and that, therefore, removal of the claim was valid in light of the uncontested timeliness of the notice of removal. As for any claims still pending after Judge Pullan’s denial of the petition to nullify the liens in the state summary proceeding 11 — such as the request for costs and reasonable attorney’s fees — the court finds ’that they are joined with the completely preempted quiet title claim such that removal of the entire case is proper here. 12

The Pebble Creek Parties’ motion to remand to Utah state court is, therefore, DENIED [# 6].

(B) The State Court Order Is Valid

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Bluebook (online)
547 F. Supp. 2d 1214, 2007 U.S. Dist. LEXIS 96854, 2007 WL 5085806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pebble-creek-homes-llc-v-upstream-images-llc-utd-2007.