RTG LLC v. Fodera

CourtDistrict Court, W.D. Texas
DecidedNovember 5, 2021
Docket5:19-cv-00087
StatusUnknown

This text of RTG LLC v. Fodera (RTG LLC v. Fodera) 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
RTG LLC v. Fodera, (W.D. Tex. 2021).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

RTG LLC,

Plaintiff/Counter-Defendant,

v. Case No. SA-19-CV-0087-JKP

LISA KATONA FODERA,

Defendant/Counter-Plaintiff.

ORDER GRANTING SUMMARY JUDGMENT UNDER FED. R. CIV. P. 56(f)

Before the Court are Defendant’s Motion for Award of Additional Relief under 28 U.S.C. § 2202 and for Entry of Final Judgment (ECF No. 89); Plaintiff’s Response to Court’s Notice of Intended Ruling under Fed. R. Civ. P. 56(f) (ECF No. 90); Plaintiff’s Amended Response to Court’s Notice of Intended Ruling under Fed. R. Civ. P. 56(f), (g) (ECF No. 92); Plaintiff’s Response to Defendant’s Motion for Award of Additional Relief under 28 U.S.C. § 2202 and for Entry of Final Judgment (ECF No. 93); and Defendant’s Reply to RTG’s Amended Response to Court’s Notice of Intended Ruling under Fed. R. Civ. P. 56(f), (g) (ECF No. 94). Because the Court’s Order Regarding Pretrial Filings (ECF No. 86) [hereinafter “Prior Order”] prompted each of these filings, that is an appropriate starting point. I. PRIOR ORDER As it did in its Prior Order (ECF No. 86), and for ease of reference, the Court will refer to the parties as RTG and Katona. Furthermore, as used in this Order (and this case in general), (1) the “Jackson claim” originally held by Segundo Suenos LLC (“Segundo”) consisted of a claim against Julian Jackson, to recoup the monies the receiver had recovered from the sale of Segundo’s assets and paid to Jackson and (2) the “Jackson interest” (purchased by RTG at the sheriff’s auction in California) consists of fifty percent of all royalty and other rights to the music of the Ohio Players previously owned by Artist Rights Foundation, LLC, or Segundo. By operation of the judgment and sheriff’s sale in California the Jackson claim essentially became the Jackson interest. An apt summary of how the Jackson claim became the Jackson interest is set out nicely in a prior order by the assigned Magistrate Judge. See ECF No. 61. As noted in the Prior Order, the Court previously denied motions for partial summary judgment by each party (ECF No. 22 and 48) and granted Katona’s motion for summary judgment (ECF No. 23) as to RTG’s claims for interference with contract and with prospective business

relationship, thus resulting in the dismissal of those claims with prejudice. See ECF No. 63. The Court thereafter partially reconsidered the two denials to clarify that the rulings “did not constitute an adjudication of the ownership rights of the Jackson interest” and that issue was to proceed to trial. See ECF No. 73. In the original order, the Court used “the Jackson interest” to denote “the fifty-percent share of the copyright and monetary interests in the musical compositions and sound recordings of the Ohio Players (the “Jackson interest”) purchased by RTG at the sheriff’s auction in California.” See ECF No. 63 at 3-4. And it definitively stated that it could not declare RTG as owner of that interest because the interest was transferred in violation of an injunction and RTG was not an innocent third party. See id. at 4-7, 8-9. It further noted a genuine dispute as to who lawfully owns the

Jackson interest. See id. at 9. But that dispute was and is not between RTG and Katona; rather the dispute was whether Katona or Jackson himself was the lawful owner. See id. These rulings are clearly reflected in the following statement: The evidence shows that the Jackson claim was transferred in violation of an injunction, that Ryan had sufficient knowledge of the underlying litigation to put him in privity with Segundo, Raul, and Alfredo, and that RTG was not an innocent third-party purchaser of the Jackson interest. Consequently, RTG is not the lawful owner of the Jackson interest. The California default judgment and sheriff’s sale are sufficiently questionable that the Court cannot, without more, conclude whether the Jackson interest should be returned to Jackson or turned over to Katona. This issue is a matter of genuine dispute. Id. at 4. The parties’ proposed pretrial order prompted the Court to issue the Prior Order. The proposed order clearly reflected that a mistaken and broad view of issues remaining for trial. The parties, furthermore, agreed that Jackson was divested of his interest and that matter was not an issue for trial. Given the combination of the mistaken belief and the newly stated agreement as to whether Jackson has any possible interest in the fifty percent interest at stake in this litigation, the Court viewed it necessary to correct the mistaken belief. It thus explained that its summary

judgment rulings did not determine whether Jackson or Katona was the lawful owner, but it had specifically ruled that, based on the summary judgment evidence, RTG is not the lawful owner. Consequently, the Court recognized that RTG had no claim that survived summary judgment and it is not the lawful owner of the Jackson interest. It further recognized that at this point in the litigation and for the remainder of this case, RTG is now merely a Counter-Defendant to any remaining counter-claims asserted against it. Furthermore, based on the parties’ agreement that Jackson was divested “of any rights or ownership in the Music of the Ohio Players,” see ECF No. 80 at 6, the Court found that the sole factual dispute that had precluded it from declaring Katona as the legal owner had been apparently eliminated. It thus provided notice to the parties that it now appears proper to grant summary

judgment under Fed. R. Civ. P. 56(f) and declare Katona the lawful owner. The Court stated that RTG may respond at the final pretrial conference set for October 29, 2021. In addition, based solely on the summary judgment evidence, the Court utilized Fed. R. Civ. P. 56(g) to state that the following material facts are not genuinely in dispute and will be treated “as established in the case:” (1) RTG is not the lawful owner of the Jackson interest; (2) RTG is not an innocent third-party purchaser of the Jackson interest; (3) the Jackson claim was transferred in violation of an injunction; (4) a prior federal judgment made Katona the lawful owner of the Jackson claim. Similarly, based upon the proposed pretrial order and agreements of the parties stated therein, the Court found the following matters are also not in dispute: (1) two sources (BMI and BMG) collect royalties on the music of the Ohio Players; (2) BMI has paid its collections into a Bankruptcy Court registry account; and (3) BMG has paid $257,202 to RTG on the Jackson Music Rights. And finally, based upon the proposed pretrial order and the summary judgment rulings to

date, (1) RTG has no existing claim in this case, (2) Katona has a claim for declaratory judgment that might be resolved through a Rule 56(f) ruling, (3) Katona has a claim asserted under Texas Uniform Fraudulent Transfer Act (or “TUFTA”) that has not been addressed through summary judgment; and (4) Katona has a claim for money judgment for royalties RTG has received on the Jackson Music Rights. II. RESULTING FILINGS The Prior Order resulted in five subsequent filings, Katona’s motion for additional relief (ECF No. 89), RTG’s preliminary (ECF No.

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Bluebook (online)
RTG LLC v. Fodera, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rtg-llc-v-fodera-txwd-2021.