Second Ave Museum, LLC v. RDN Heritage, LLC

CourtDistrict Court, M.D. Tennessee
DecidedFebruary 2, 2022
Docket3:20-cv-00067
StatusUnknown

This text of Second Ave Museum, LLC v. RDN Heritage, LLC (Second Ave Museum, LLC v. RDN Heritage, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Second Ave Museum, LLC v. RDN Heritage, LLC, (M.D. Tenn. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

SECOND AVE MUSEUM, LLC d/b/a ) THE JOHNNY CASH MUSEUM, ) ) Plaintiff/Counter-defendant, ) ) Case No. 3:20-cv-00067 v. ) Judge Aleta A. Trauger ) RDN HERITAGE, LLC, ) ) Defendant/Counter-plaintiff. )

MEMORANDUM and ORDER Before the court are the following motions: (1) the Motion for Protective Order (Doc. No. 101) filed by plaintiff Second Avenue Museum, LLC d/b/a The Johnny Cash Museum (“Second Ave”); (2) Second Ave’s Motion for Judgment on the Pleadings (Doc. No. 147); and (3) a Motion for Leave to File a Surreply (Doc. No. 157), filed by defendant RDN Heritage, LLC (“RDN”) in connection with the Motion for Judgment on the Pleadings. As set forth herein, all three motions will be denied. I. BACKGROUND This case has a lengthy and tortuous history, which the court summarizes here insofar as it is relevant to the pending motions. Second Ave, a Tennessee limited liability company with its principal place of business in Nashville, operates The Johnny Cash Museum, which is officially authorized by Johnny Cash’s estate. Bill Miller, a Nashville businessman, is the managing member of Second Ave. Second Ave obtained funding to open the Johnny Cash Museum from defendant RDN pursuant to a series of agreements, including an original Sponsorship Agreement, effective April 12, 2012 (“Original Agreement”), and the January 1, 2015 Amended and Restated Sponsorship Agreement (“Amended Agreement”). Second Ave filed suit in January 2020, seeking a judicial declaration that the Original Agreement and Amended Agreement were both void or voidable as unconscionable, due to RDN’s

attorney’s alleged conflict of interest and breach of fiduciary duty, the allegedly “grossly unequal bargaining power of the parties, the oppressive financial terms, and [RDN’s] overreaching.” (Doc. No. 1, at 3.) In addition to seeking a declaration, the plaintiff also sought to “rescind and/or reform” both contracts and the recovery of all “unreasonable and excessive” fees paid by Second Ave to RDN since April 2012. (See id. at 11–13.) RDN filed an Answer, denying liability, and Counterclaims for breach of contract by the plaintiff. (Doc. No. 12.) In November 2020, the plaintiff filed a Motion to Compel, seeking the discovery of documents that RDN had withheld as subject to attorney-client privilege. Second Ave maintained that RDN’s counsel had jointly represented both parties to the Original Agreement and, therefore, that the communications between RDN’s counsel and RDN’s principal related to the formation of

that agreement were discoverable by Second Ave. The undersigned referred the Motion to Compel to Magistrate Judge Frensley, who denied it, finding that the plaintiff had not presented any evidence in support of its claim of joint representation. (See Doc. No. 71, at 13 (“The Court finds that Second Ave has not established that any such privilege exists as to Second Ave/Mr. Miller because Second Ave has not shown that such an attorney-client relationship existed in the matters of the Original Agreement . . . . Neither is there any evidence that Mr. Nueske [RDN’s now- deceased principal] waived his privilege over the disputed documents when he occasionally discussed his lawyers’ advice with Mr. Miller or forwarded one of their emails to him.”).) Notably, RDN sought attorney’s fees in connection with successfully defending against the Motion to Compel, under Rule 37 of the Federal Rules of Civil Procedure. Its request for fees has been fully briefed but has not yet been resolved by Magistrate Judge Frensley. After filing a Motion for Partial Summary Judgment in February 2021, RDN sought to stay discovery pending the resolution of any objections to the Magistrate Judge’s ruling on the Motion

to Compel and pending resolution of the Motion for Partial Summary Judgment. The court granted RDN’s alternative request for a 90-day extension of all discovery deadlines and subsequently granted Second Ave’s request to extend its deadline for responding to the Motion for Partial Summary Judgment until it had the opportunity to depose RDN’s corporate designee—who also happened to be the attorney whom the plaintiff accused of having a conflict of interest. In light of the various pending motions and requests to extend deadlines, the court entered a Third Amended Case Management Order, which extended the deadlines for discovery and expert disclosures and set a new dispositive motion deadline of December 20, 2021. (Doc. No. 96.) The court also reset the jury trial to a later date—May 17, 2022. (Doc. No. 97.) In July 2021, Second Ave filed its Motion for Protective Order and supporting

Memorandum of Law (Doc. Nos. 101, 102), as well as a Motion for Voluntary Dismissal (Doc. No. 100). After conducting a telephone conference with the parties, the court entered an order staying all discovery pending further order of the court, holding Second Ave’s Motion for Protective Order in abeyance, and setting an extended briefing schedule for RDN’s Motion for Partial Summary Judgment. (Doc. No. 105.)1 The parties, respectively, filed responses to each other’s motions and replies in support of their own motions. RDN also filed a Surreply in

1 In August 2021, RDN filed a Motion for Rule 11 Sanctions and supporting Memorandum. (Doc. Nos. 129, 130.) That motion remains pending, but the court will address it in a separate ruling. opposition to Second Ave’s Motion for Voluntary Dismissal, and both parties filed several motions to exceed page limitations, all of which were granted. In September 2021, the court issued an Order granting, in all important respects, RDN’s Motion for Partial Summary Judgment. (Doc. No. 144.) Specifically, in granting RDN’s motion,

the court dismissed, with prejudice, Second Ave’s claims for a declaration that the Original and Amended Agreements were unconscionable and for rescission or reformation of the agreements. With respect to RDN’s counterclaims, the court found that RDN was entitled to judgment in its favor on its claims for breach of contract and to judicial declarations to the effect that the payment provisions of the Amended Agreement were enforceable and that it was entitled to an accounting and audit of the plaintiff’s financial records, in accordance with the terms of the Amended Agreement. Having dismissed with prejudice the primary claims in the plaintiff’s Complaint in the course of ruling on RDN’s Motion for Partial Summary Judgment, the court denied the plaintiff’s Motion for Voluntary Dismissal, insofar as it sought the dismissal without prejudice of the same claims.2 Aside from RDN’s still pending Motion for Sanctions (and request for attorney’s fees

incurred in connection with the plaintiff’s Motion to Compel), the ruling on these two motions left little to be resolved in this case other than the amount of RDN’s damages for Second Ave’s breach of contract. On December 31, 2021, RDN filed a Motion to Lift Stay and Amend Case Management Order, specifically requesting that the stay of discovery entered in August 2021 be lifted and that the parties be permitted to conclude discovery related to RDN’s damages, including the issue of

2 Second Ave’s Motion for Voluntary Dismissal was granted with respect to Count II of the Complaint, which sought a declaration that RDN was not entitled to revenue from a completely separate entity, the Patsy Cline Museum, which has never been a significant focus of the parties’ litigation. punitive damages. RDN also submitted a proposed Fourth Amended Case Management Order setting new discovery deadlines but retaining the parties’ May 17, 2022 trial date.

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Bluebook (online)
Second Ave Museum, LLC v. RDN Heritage, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/second-ave-museum-llc-v-rdn-heritage-llc-tnmd-2022.