Sophos v. Hibbs (In re Hibbs)

161 B.R. 259, 1993 Bankr. LEXIS 1707
CourtUnited States Bankruptcy Court, C.D. California
DecidedOctober 26, 1993
DocketBankruptcy No. LA 93-10829 KM; Adv. No. LA 93-02303 KM
StatusPublished
Cited by2 cases

This text of 161 B.R. 259 (Sophos v. Hibbs (In re Hibbs)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sophos v. Hibbs (In re Hibbs), 161 B.R. 259, 1993 Bankr. LEXIS 1707 (Cal. 1993).

Opinion

OPINION ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

KATHLEEN P. MARCH, Bankruptcy Judge.

I. INTRODUCTION

This opinion rules on cross-motions for summary judgment. The cross-motions are [261]*261made in a nondischargeability adversary proceeding brought by plaintiff Demetrios James Sophos (Sophos) against joint debtors John William Hibbs (Mr. Hibbs) and Sandra Burris Hibbs (Mrs. Hibbs), who are husband and wife.

Plaintiff Sophos’ motion for summary judgment seeks to hold a federal judgment for intentional copyright infringement nondis-chargeable as to both Mr. and Mrs. Hibbs pursuant to 11 U.S.C. § 523(a)(6).1 Defendants Mr. and Mrs. Hibbs’ cross-move for summary judgment seeking to have the copyright infringement judgment held discharge-able as to each of them.

Both motions also ask the Court to rule whether Sophos can reach the postpetition community or separate property of Mrs. Hibbs, pursuant to 11 U.S.C. § 524(a)(3) and (b)(1),2 to satisfy a judgment of nondis-chargeability against Mr. Hibbs, should a judgment of nondischargeability be obtained against only Mr. Hibbs.

Part IV sets forth the Court’s ruling as to Mr. Hibbs. The Court grants plaintiffs motion for summary judgment against Mr. Hibbs and denies Mr. Hibbs’ cross-motion. The Court holds that the federal copyright infringement judgment is nondischargeable as to Mr. Hibbs pursuant to Section 523(a)(6).

Part V sets forth the Court’s ruling as to Mrs. Hibbs. The Court denies plaintiffs motion for summary judgment and grants Mrs. Hibbs’ cross-motion. The Court holds that the federal copyright infringement judgment is dischargeable as to Mrs. Hibbs.

In Part VI, the Court discusses the question of what property Sophos may reach to collect on his nondischargeable judgment against Mr. Hibbs. The following opinion sets forth this Court’s findings.3

II. FACTS

A. THE DISTRICT COURT COPYRIGHT INFRINGEMENT ACTION.

On May 26, 1988, Sophos commenced a copyright infringement action against Mr. Hibbs, United Amusements, Inc. (a corporation owned by Mr. Hibbs), and Norm Hent-horn (a supplier of United Amusements) in the United States District Court, Central District of California. Mrs. Hibbs was not a party to the action.

The case was eventually tried to a jury presided over by U.S. Magistrate Judge [262]*262George King, United States District Court Central District of California. The jury returned a verdict against Mr. Hibbs and against both of the other defendants. Magistrate Judge King entered judgment against the defendants accordingly.4 There was no judgment against Mrs. Hibbs as she was never a party to the action.

The verdict was a special verdict which was in the form of interrogatories, each answered separately by the jury. The jury found in its special verdict that Mr. Hibbs caused United Amusements to infringe and that Mr. Hibbs personally participated in the acts of United Amusements that constituted infringement.5

WE, THE JURY, FIND THE FOLLOWING:
1. PLAINTIFF’S ACTUAL DAMAGES.
1. Was the Plaintiff actually damaged by the infringements of any of the defendants? Yes x No _
2. DEFENDANT HIBBS’ ROLE.
2. Do you find that Defendant John W. Hibbs did either of the following: (answer yes or no)
i. Caused UNITED AMUSEMENTS to infringe? yes
ii. Personally participated in the acts of UNITED AMUSEMENT that constitute infringement? yes_
WILLFUL, CONSCIOUS OR DELIBERATE INFRINGEMENT.
5.a. Do you find that Defendants' UNITED AMUSEMENTS/HIBBS infringements were or were not willful, conscious or deliberate? If you find that the infringements were willful, conscious or deliberate, then answer “Yes". If you find that the infringements were not willful, conscious or deliberate, then answer "No.”
PERFECT BILLIARDS Yes x No __
MISSION XX Yes x No _
AIRWOLF Yes x No_
5.c. Do you find that Defendant HENTHORN’s infringements were or were not willful, conscious or deliberate? If you find that the infringements were willful, conscious or deliberate, then answer "Yes”. If you find that the infringements were not willful, conscious or deliberate, then answer "No.”
PERFECT BILLIARDS Yes _ No x
MISSION XX Yes _ No x
AIRWOLF Yes_ No x
Signed this 25th day of September, 1989, at Los Angeles, California.
/s/ Paul E. Adkins Jury Foreperson

As evidenced by the special verdicts, the jury also determined that the infringement of Mr. Hibbs and United Amusements was willful. U.S. Magistrate Judge King instructed the jury on willful infringement. The instruction he gave instructed the jury that willful infringement meant “copying with knowledge that the defendants’ conduct constitutes copyright infringement.”6

[263]*263B. FACTS RELEVANT TO THE CROSS-MOTIONS.

In ruling on the cross-motions, the Court has relied only upon the following items: (1) the federal copyright judgment,7 (2) the special verdicts answered by the jury,8 (3) the special jury instruction on the definition of willful infringement,9 (4) a portion of the deposition of Norm Henthorn (taken in the infringement case and filed with the court -in support of the instant motion),10 and (5) a portion of the deposition of John Hibbs (taken in the infringement case and filed with the court in support of the instant motion).11

The portion of the Henthorn deposition considered by the Court is page 16, lines 1-25. There, Norm Henthorn testified that he had asked Mr. Hibbs whether he (Henthorn) should remove Sophos’ copyright notice from products he (Henthorn) was copying for United Amusements. According to Hent-horn, Mr. Hibbs said he (Hibbs) would have to consider it and would “get back to” Hent-horn. Then, according to Henthorn, Mr. Hibbs or someone from United Amusements called him (Henthorn) and told him (Hent-horn) to remove the copyright notices.

The portion of the John Hibbs deposition considered by the Court is page 22 line 14 through page 23 line 18. At first, Mr. Hibbs denied the above conversation occurred. However, Mr. Hibbs then admitted that such a conversation may have occurred — but stated he did not recall the conversation. Finally, Mr. Hibbs said that he would not say Henthom was lying.

The Court also considered page 22 line 12 and page 38 lines 20-25 and page 39 lines 1-5 of the John Hibbs deposition. There, Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
161 B.R. 259, 1993 Bankr. LEXIS 1707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sophos-v-hibbs-in-re-hibbs-cacb-1993.