Shloss v. Sweeney

515 F. Supp. 2d 1083, 2007 U.S. Dist. LEXIS 41847, 2007 WL 1574568
District Court, N.D. California·Decided May 30, 2007·No. C 06-03718 JW·Published·Cited by 1 cases

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR AWARD OF ATTORNEY FEES AND COSTS

JAMES WARE, District Judge.

I. INTRODUCTION

Carol Loeb Shloss (“Plaintiff’) brought this action for a declaratory judgment and injunctive relief pursuant to the Copyright Act of 1976, 17 U.S.C. §§ 101 et seq. and 28 U.S.C. § 2201. Plaintiff sought a declaratory judgment that the use of certain written works in an electronic supplement to her book, if published, will not infringe any copyrights controlled or owned by the Estate of James Joyce (“Estate”), Stephen James Joyce, and Seán Sweeney, in his capacity as the trustee of the Estate (collectively, “Defendants”). The parties reached a settlement and filed a stipulated dismissal, which the Court approved. Presently before the Court is Plaintiffs Motion for Award of Attorney Fees and Costs. The Court finds it appropriate to take the motion under submission without oral argument. See Civ. L.R. 7-l(b). Based on the papers submitted to date, the Court GRANTS Plaintiffs Motion for Award of Attorney Fees and Costs. 1

II. BACKGROUND

In June 2006, Plaintiff brought this action for declaratory and injunctive relief pursuant to the Copyright Act of 1976, 17 U.S.C. §§ 101 et seq. and the Declaratory Judgment Act, 28 U.S.C. § 2201. Plaintiff alleged four causes of action: (1) Counts 1 and 2, for a declaratory judgment that the Electronic Supplement does not infringe Defendants’ copyrights or is presumptively fair use; (2) Count 3, for a declaratory judgment of copyright misuse; and (3) Count 4, for a declaratory judgment of Defendants’ unclean hands. The factual allegations are found in the Court’s February 9, 2007 Order denying Defendants’ motion to dismiss, (hereafter, “February 2007 Order,” Docket Item No. 21.)

In its February 2007 Order, the Court found that (1) Plaintiff had a real and reasonable apprehension of copyright liability sufficient to create an actual controversy between the parties; (2) Defendants’ then-proposed covenant not to sue was inadequate to moot that controversy; and (3) Plaintiff had sufficiently alleged a nexus between Defendants’ actions and the Copyright Act’s public policy of promoting creative expression to support a cause of action for copyright misuse. Id.

In March 2007, the parties reached a settlement. Defendants covenanted “not to sue Shloss for infringement of any copyrights resulting from Shloss’s [sic] publication, in either electronic or printed form, of the Supplement ...” Publication of the Supplement was limited to the United States. Defendants also agreed to provide Plaintiff with a copy of the September 21, 2006 letter from David Munro regarding the ownership of the Lucia Joyce copyrights. Defendants did not admit any actions, omissions, liability or damages under the settlement. The settlement agreement did not address the issue of attorney fees. (See Stipulation and Proposed Order Ex. 1, hereafter, “Settlement Agreement,” Docket Item No. 71.) The Court approved the Settlement Agreement, dismissed the actions with prejudice, and retained jurisdiction to enforce the Settlement Agreement. *1085 (See Stipulation and Order Dismissing Actions, Docket Item No. 72.)

Presently before the Court is Plaintiffs Motion for Attorney Fees and Costs.

III. STANDARDS

Under the Copyright Act, the court may award a reasonable fee to the “prevailing” party. 17 U.S.C. § 505. Under Supreme Court precedent, a “prevailing party” must (1) achieve a material alteration of the legal relationship of the parties (2) which alteration is judicially sanctioned. Carbonell v. INS, 429 F.3d 894, 897-98 (9th Cir.2005) (citing Buckhannon Bd. & Care Home, Inc. v. West Virginia Dep’t of Health & Human Res., 532 U.S. 598, 604-05, 121 S.Ct. 1835, 149 L.Ed.2d 855 (2001)).

IV. DISCUSSION

Plaintiff contends that she is the “prevailing party” in this litigation, because the parties’ Settlement Agreement effected a material alteration in the parties’ legal relationship. (Notice of Motion and Motion for Award of Attorneys’ Fees and Costs; Memorandum of Points and Authorities in Support at 10-11, hereafter, “Motion,” Docket Item No. 73.) Defendants contend that they are the prevailing party, because the Settlement Agreement resulted in Plaintiffs dismissal of her action with prejudice. (Defendants’ Opposition to Plaintiffs’ Motion for Award of Attorneys’ Fees and Costs at 7-8, hereafter, “Opposition,” Docket Item No. 78.)

The Ninth Circuit has found, inter alia, that an enforceable judgment on the merits, a court-ordered consent decree, a preliminary injunction, and a legally enforceable settlement agreement can each represent a material alteration in the parties’ relationship sufficient to justify an award of attorney fees. Carbonell, 429 F.3d at 898-99. For instance, one plaintiff under the Americans with Disabilities Act of 1990 (“ADA”) reached a settlement agreement prohibiting the defendant, an interscholastic federation, from excluding plaintiff from on-field coaching of baseball games, and requiring the defendant to pay money damages. Barrios v. Cal. Interscholastic Fed’n, 277 F.3d 1128, 1134 (9th Cir.2002). The court found that the plaintiff was the prevailing party because he could enforce the terms of the settlement agreement against the defendant. Id.

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Shloss v. Sweeney, 515 F. Supp. 2d 1083, 2007 U.S. Dist. LEXIS 41847, 2007 WL 1574568 (N.D. Cal. 2007).

515 F. Supp. 2d 1083 (Shloss v. Sweeney) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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