Thompson v. C&C Research & Development, LLC

898 A.2d 495, 153 N.H. 446, 2006 N.H. LEXIS 50
CourtSupreme Court of New Hampshire
DecidedApril 27, 2006
DocketNo. 2004-808
StatusPublished
Cited by5 cases

This text of 898 A.2d 495 (Thompson v. C&C Research & Development, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. C&C Research & Development, LLC, 898 A.2d 495, 153 N.H. 446, 2006 N.H. LEXIS 50 (N.H. 2006).

Opinion

Hicks, J.

The plaintiff, Jenny Thompson, appeals a decision of the Superior Court (Nadeau, J.) concluding: (1) that no legally enforceable merger or asset purchase agreement occurred between the defendants; (2) that the record was devoid of evidence of any misappropriation of Thompson’s name and likeness; and (3) that defendant Pure Distributors, Inc. (Pure) is exclusively responsible for the judgment in this case. We affirm.

The trial court found the following relevant facts. In 1998, Thompson, a former Olympic gold medal swimmer, and Matthew Freese, President and CEO of Pure, entered into an endorsement contract, whereby Pure agreed to pay Thompson scheduled sums in return for her endorsement of Pure’s nutritional products and services. Under the terms of the contract, Thompson allowed Pure to use her image on its web site and promotional materials. Subsequently, Pure began to experience financial difficulties. In an effort to recover, Freese met with Ralph Cutillo, owner and operator of defendants C&C Research and Development, LLC, Total Body Wellness Franchising, LLC, and Health-Style, USA, Inc. (the Cutillo defendants). Cutillo expressed interest in purchasing Pure’s assets through C&C Research and Development LLC (C&C Research) with the understanding that any such purchase would not include the assumption of Pure’s liabilities.

During the ensuing negotiations, much of Pure’s equipment, inventory and office supplies were delivered to C&C Research’s facilities in Laconia. By December 2000, Pure’s office was closed and by January 2001, most, if not all, of Pure’s tangible assets were located at C&C Research’s facilities. On January 9, 2001, Freese authorized Pure’s product manufacturer to [448]*448produce nutritional bars and other products for C&C Research. In March 2001, Pure officially transferred its account for facilitating web site purchases to C&C Research. Despite these transfers during the early months of 2001, the parties had not yet reached a final agreement.

Negotiations continued over several months. In an attempt to reach a final agreement, Freese met with Cutillo and Cutillo’s attorney, John Giere, in March 2001. Attorney Giere, who subsequently drafted an asset purchase agreement for the parties’ review, was unaware of Thompson’s endorsement agreement with Pure. Neither party mentioned it during the meeting.

Although products continued to be sold, Freese made no payments to Thompson. Thompson wrote to Freese on March 30, 2001, seeking payments that she had not received since June 2000. Freese responded in an April 10, 2001 letter, assuring Thompson that Pure was solely responsible for the payments owed and that a newly formed distribution company, which Freese did not identify, was not responsible for any of Pure’s liabilities, including Thompson’s contract.

Between March and June 2001, negotiations between Pure and the Cutillo defendants deteriorated. In a June 14, 2001 letter to Freese, Attorney Giere stated that Cutillo had rejected “any final agreement” proposal, but was leaving the door open for an asset purchase agreement. On June 27, 2001, Cutillo sent a letter informing Freese that he had rejected all proposals for either an asset purchase or a licensing agreement, and requested that Freese remove all of Pure’s assets from the premises of Cutillo’s company and prepare to reimburse Cutillo for sums already paid.

On August 28, 2002, Thompson filed suit in superior court against Freese, Pure, and Total Body Wellness Franchising, Inc. (TBW). Her original writ claimed that: (1) Pure breached the endorsement contract; (2) TBW was hable for this breach because it had acquired “the assets and debts” of Pure; and, alternatively, (3) if TBW did not acquire “the assets and debts” of Pure, then TBW and Cutillo were liable for invasion of privacy for the misappropriation of her name and likeness by using them on TBW’s web site. On November 1, 2002, just two days after Thompson filed a voluntary nonsuit against Freese individually, she obtained a confession of judgment from Pure.

On March 31, 2004, Thompson amended her writ to name C&C Research and Health-Style USA, Inc. (Health-Style) as defendants. Thompson alleged that Pure’s assets and debts had been acquired by TBW as of January 2001, and that the two new defendants participated in, or were responsible for, “the acquisition of [Pure and] the breach of contract and misappropriation of [her] name and likeness without authorization.” [449]*449Following a consolidated bench trial, the trial court entered judgment in favor of Thompson for $265,000 against Pure, but judgment in favor of the remaining defendants on all claims.

On appeal, Thompson argues that the trial court erred by: (1) finding that the Cutillo defendants were not liable for the misappropriation of her image; (2) failing to consider her alternative claims of quantum meruit, quasi-contract, and unjust enrichment; (3) ruling that Pure’s acceptance of sole responsibility precluded her from seeking damages for the misappropriation of her image from the Cutillo defendants; and (4) ruling that no defacto merger occurred between Pure and the Cutillo defendants.

We will not disturb the findings of the trial court unless they lack evidentiary support or are erroneous as a matter of law. Miller v. Slania Enters., 150 N.H. 655, 659 (2004). Legal conclusions, as well as the application of law to fact, are reviewed independently for plain error. Id. Accordingly, our inquiry is to determine whether the evidence presented to the trial court reasonably supports its findings, and then whether the court’s decision is consonant with applicable law. Id. Finally, we review questions of law de novo. Id.

I. Misappropriation

Thompson first contends that the trial court erred by finding that there was no evidence that the Cutillo defendants misappropriated her image. She asserts that the Cutillo defendants either assumed her endorsement contract or misappropriated her image. We disagree.

In its final order, the trial court stated:

At the time Freese began to transfer assets to C and C Research, Pure operated a web site which contained the plaintiff’s endorsement and photograph. Cheryl Sivewright, web designer for Pure, testified that at no time did the web site contain a photograph of the plaintiff while it was controlled by C and C. While the plaintiff was justifiably concerned that her likeness appeared on the web site after she learned that C and C Research was attempting to acquire Pure, there is no evidence that C and C Research misappropriated her likeness at a time when it controlled the web site or related domains.

The trial court also granted requests for findings of fact that essentially confirm that neither Cutillo individually, nor any of the Cutillo defendants, ever maintained or used a website containing the likeness of Thompson.

“[A]s the trier of fact, the trial court is in the best position to assess and weigh the evidence before it because it has the benefit of observing the parties and their witnesses.” In re Adam M., 148 N.H. 83, 84 (2002). [450]*450Cheryl Sivewright testified that at no time did a company controlled by Cutillo ever control or operate a website with Thompson’s photograph or likeness on it. On the contrary, she testified that Pure had exclusive control of such website.

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Bluebook (online)
898 A.2d 495, 153 N.H. 446, 2006 N.H. LEXIS 50, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-cc-research-development-llc-nh-2006.