Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc.

CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 15, 2023
Docket21-10410
StatusUnpublished

This text of Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc. (Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc., (11th Cir. 2023).

Opinion

USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 1 of 17

[DO NOT PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 21-10410 ____________________

POET THEATRICALS MARINE, LLC, POET PRODUCTIONS, LLC, POET TECHNICAL SERVICES, LLC, POET HOLDINGS, INC., Plaintiffs-Appellees, versus CELEBRITY CRUISES, INC.,

Defendant-Appellant,

ROYAL CARIBBEAN CRUISES, LTD., et al., USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 2 of 17

2 Opinion of the Court 21-10410

Defendants.

Appeal from the United States District Court for the Southern District of Florida D.C. Docket No. 1:20-cv-24619-CMA ____________________

Before WILSON, LUCK, and LAGOA, Circuit Judges. PER CURIAM: This is a case about shows on cruise ships. Poet Theatricals Marine, LLC1 and Celebrity Cruises, Inc. entered into a series of agreements. In those agreements, Poet agreed to produce shows for Celebrity’s ships. When those agreements went south, Poet sued Celebrity in state court, asserting various claims under state law. Celebrity, in turn, removed the case to federal court. Celeb- rity argued that Poet’s state-law claims were actually federal copy- right claims. In doing so, Celebrity invoked the doctrine of com- plete preemption, which treats certain state-law claims as if they were federal.

1 The plaintiffs were Poet Theatricals Marine, LLC, Poet Productions, LLC, Poet Technical Services, LLC, and Poet Holdings, Inc. We’ll refer to them together as “Poet.” USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 3 of 17

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The district court dismissed all of Poet’s claims except for one: a state unjust enrichment claim. The district court concluded that the unjust enrichment claim was not completely preempted by the Copyright Act. The district court declined to exercise sup- plemental jurisdiction over that claim and remanded it to state court. On appeal, Celebrity argues that the district court erred by remanding the claim because it was completely preempted. We affirm. A state-law claim is completely preempted (and thus removable) if (1) a federal statute creates an exclusive cause of action and (2) the state-law claim falls within that exclusive federal cause of action. Even if the Copyright Act created an exclusive fed- eral cause of action (at step one), Poet’s unjust enrichment claim fell outside of that cause of action (at step two). Because Poet’s unjust enrichment was not completely preempted, the claim was neither federal nor removable. As the district court concluded, it belonged in state court.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY Poet is an entertainment company. As part of its business, Poet created, produced, and executed live shows for cruise ships. In 2007, Poet signed a series of agreements with Celebrity Cruises, Inc. In those agreements, Poet agreed to produce shows for Celeb- rity. These shows regularly appeared on Celebrity’s ships until the agreements ended in 2016. Over the course of these performances, Celebrity took videos and photographs of Poet’s shows. USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 4 of 17

4 Opinion of the Court 21-10410

The contracts gave Celebrity “the exclusive right and limited license to use, perform or display [Poet’s] shows” on Celebrity’s ships for the term of the agreements. They also stated that, if Ce- lebrity wanted to “use any [p]roject [m]aterials for any other pur- pose other than in [Poet’s] [s]hows within the scope” of the agree- ments, Celebrity had to “obtain a license for such use from” Poet. “Project materials” were defined to include Poet’s intellectual property developed and used in its shows. The agreements pro- vided that “[a]ll [p]roject [m]aterials shall be and remain the sole property of [Poet] and shall be delivered to [Poet] upon termina- tion” of the agreements. According to Poet, Celebrity didn’t live up to these agree- ments. The agreements granted Celebrity a “limited license” to use, perform, or display the shows over the duration of each agree- ment. But Celebrity “continued to use the video recordings and still photographs of scenes in Poet’s shows in promotional materi- als . . . following termination of the agreements.” Celebrity dis- played images of Poet’s shows on its websites, brochures, and post- ers. And Celebrity continued to use videos of Poet’s shows on its YouTube channels and its website. Poet sued Celebrity, its parent corporation, and nine travel agencies in Florida state court. Poet asserted twenty-one state-law causes of action, including one against Celebrity for unjust enrich- ment (count two). In setting out its unjust enrichment claim, Poet alleged that it had “granted [Celebrity] a limited license to use Poet’s intellectual property.” But Celebrity continued to use and USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 5 of 17

21-10410 Opinion of the Court 5

benefit from Poet’s intellectual property outside the terms of that limited license. And so Poet alleged that Celebrity was liable for unjust enrichment. Although Poet’s claim was based on Celebrity using its intellectual property, Poet didn’t bring any federal copy- right claims. Celebrity removed the case to federal court. In doing so, Celebrity asserted federal question jurisdiction through the com- plete preemption doctrine. Celebrity recognized that, under the well-pleaded complaint rule, a plaintiff may generally “avoid fed- eral jurisdiction by exclusive reliance on state law.” But there is an exception: when federal law has “entirely displace[d] any state cause of action,” we will treat those displaced state causes of action as federal claims “removable to federal court.” Celebrity argued that the Copyright Act completely preempts state law in this way. And it contended that Poet’s state-law claims fell within the Copy- right Act’s scope such that Poet’s claims were (in fact) federal cop- yright claims. Poet moved to remand. Poet argued that complete preemp- tion was a “rare doctrine” that the Supreme Court had applied in only three statutes: the Labor Management Relations Act, the Em- ployee Retirement Income Security Act, and the National Bank Act. Poet pointed out that this court had “display[ed] no enthusi- asm to extend the [complete preemption] doctrine into new areas of law.” Poet also argued that, even if the Copyright Act could completely preempt state law, the Copyright Act didn’t completely USCA11 Case: 21-10410 Document: 38-1 Date Filed: 05/15/2023 Page: 6 of 17

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preempt its particular claims in this case. That’s because, in Poet’s view, its claims fell outside the Copyright Act’s scope. The district court agreed almost entirely with Celebrity. First, the district court—following the unanimous view of other circuits that have considered the question—concluded that the Copyright Act completely preempts state-law claims that fall within the Act’s scope. Second, the district court held that twenty of the twenty-one claims were completely preempted. The sole exception was Poet’s unjust enrichment claim against Celebrity. The district court reasoned that the unjust enrichment claim fell outside the Copyright Act’s scope and thus wasn’t completely preempted. Because it found that the Copyright Act completely preempted twenty of Poet’s state-law claims, the district court con- cluded that it had federal question jurisdiction over the case. In other words, it found that twenty of Poet’s “state-law claims” were really federal copyright claims. The district court thus denied Poet’s motion to remand. But it dismissed those twenty claims without prejudice, leaving only the state unjust enrichment claim against Celebrity.

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Poet Theatricals Marine, LLC v. Celebrity Cruises, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/poet-theatricals-marine-llc-v-celebrity-cruises-inc-ca11-2023.