Toberoff & Associates v. Daigle CA2/1

CourtCalifornia Court of Appeal
DecidedJune 26, 2023
DocketB319706
StatusUnpublished

This text of Toberoff & Associates v. Daigle CA2/1 (Toberoff & Associates v. Daigle CA2/1) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toberoff & Associates v. Daigle CA2/1, (Cal. Ct. App. 2023).

Opinion

Filed 6/26/23 Toberoff & Associates v. Daigle CA2/1 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

TOBEROFF & ASSOCIATES, P.C., B319706

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. 18SMCV00170) v.

GERALD J. DAIGLE, JR.,

Defendant and Respondent.

APPEAL from an order of the Superior Court of Los Angeles County, H. Jay Ford III, Judge. Affirmed. Toberoff & Associates, Marc Toberoff and Jaymie Parkkinen for Plaintiff and Appellant. Manning & Kass, Ellrod, Ramirez, Trester, Anthony J. Ellrod and Steven J. Renick for Defendant and Respondent.

________________________ In 2018, plaintiff Toberoff & Associates, P.C. (the firm or the Toberoff firm) filed suit against Alan Donnes, alleging that Donnes made false statements disparaging the firm and its principal, Marc Toberoff,1 to a group of the firm’s clients, causing the clients to terminate the firm’s representation. After Donnes died, the firm filed an amended complaint against several new defendants alleging that these new defendants collaborated with Donnes in his scheme. One of the newly added defendants, Donnes’s former business partner Gerald J. Daigle, Jr., filed a motion to quash service of summons of the complaint. Daigle, who resides in Louisiana, argued that he did not have the minimum contacts with California necessary to subject him to the jurisdiction of our state’s courts. The Toberoff firm argues the trial court erred by granting the motion, and that it abused its discretion by denying the firm’s request for discovery regarding Daigle’s conduct in California. We affirm. The firm failed to show the controversy relates to or arises from Daigle’s contacts with California, and the trial court reasonably determined that additional discovery was unlikely to lead to the production of evidence of facts establishing jurisdiction.

1We refer to Toberoff & Associates as the firm to distinguish it from Marc Toberoff.

2 FACTUAL BACKGROUND AND PROCEEDINGS BELOW2 A. Events Leading to the Heirs’ Termination of the Toberoff Firm In 1938, John W. Campbell, Jr. published a novella titled Who Goes There? about a group of scientists at a research outpost in Antarctica under attack from a shapeshifting alien. Campbell sold the film rights to the story for a flat fee, and in the following decades, the story was adapted into three separate films: first, in 1951, by RKO Radio Pictures under the title The Thing from Another World, and then in 1982 and 2011 by Universal Pictures under the title The Thing. The first two of these adaptations are viewed as classics of the science fiction and horror genres, suggesting the possibility of still more adaptations to come. In 2015, Toberoff approached Campbell’s heirs with news: a brief window had opened during which the heirs could terminate Campbell’s previous grant of film rights in Who Goes There? The heirs signed an engagement agreement with the Toberoff firm to recover the film rights on their behalf in exchange for 50 percent of any proceeds deriving from the rights. The heirs were entitled to terminate the firm’s engagement at any time, but the contract provided that if the firm succeeded in securing any rights to the

2 Our account of the factual allegations and procedural history is drawn in part from our recent opinion in another appeal arising from this case, Toberoff & Associates, P.C. v. Betancourt (May 1, 2023, B319116) [2023 WL 3166698] [nonpub. opn.]). We take judicial notice of our prior opinion. (Starr v. Ashbrook (2023) 87 Cal.App.5th 999, 1014.)

3 work, its “entitlement to its full [f]ee shall ‘vest’ even if the [f]irm is subsequently discharged or terminated by the” heirs. In January 2016, the firm served notices on the current holders of the film rights, including Universal, informing them that the heirs intended to terminate the grant of rights to the novella pursuant to section 304 of the federal Copyright Act. (17 U.S.C. § 304(d).) The termination of rights did not take effect until January 2018, and the Toberoff firm did not attempt to market the film rights until that point. In the summer of 2018, Donnes, an independent producer, entered the scene. He contacted Toberoff, claiming that he owned or controlled rights of RKO that would be necessary to make any new The Thing movie, and that he had a relationship with Universal or a production company at Universal. Toberoff understood the latter to mean defendant Blumhouse Productions, LLC (Blumhouse), a production company with a deal to produce films for Universal. According to Toberoff, a Blumhouse representative had recently contacted him with a proposal to option or purchase the film rights to Who Goes There? from the heirs. Toberoff was skeptical of Donnes’s claims and demanded documentation of RKO’s rights, which Donnes was unable to produce. In late August 2018, Donnes contacted the heirs (who reside outside California) directly and waged a campaign to convince them to terminate the Toberoff firm’s representation and to allow Donnes to handle the film rights to Who Goes There? On September 4, 2018, Donnes wrote an email to one of the heirs and to defendant John Betancourt, whose company published Campbell’s novels and who had been advising the heirs regarding the film rights. In the email, Donnes offered to send a template

4 termination letter. The next day, Donnes wrote the heirs that, if they canceled their agreement with the Toberoff firm, Donnes’s company would “pay any and all legal expenses billed by Mr. Toberoff, aside from his 50 [percent] share of any licensing fees.” Donnes also offered the heirs “additional money for consulting work, executive producing, etc. These payments are NOT shared with Mr. Toberoff.” He wrote that Toberoff was an obstacle to signing a deal because he would insist on receiving a producer credit and a high salary for himself as a part of any deal, and that Toberoff was “NOT wanted or welcome at any major studio and, to date, he has not produced a single film based on any of the over 40 story rights he has secured copyrights to.” Donnes warned the heirs that Toberoff “is not working in your best interest.” On September 26, 2018, Donnes wrote an email on behalf of his production company, TLMC, promising to “pay all reasonable costs incurred and billed to you by Marc Toberoff and Associates. Additionally, TLMC will provide legal representation, at our cost, to represent you should he file any litigation related to his termination and/or production of the feature film.” The following day, Betancourt sent Toberoff a termination letter on the heirs’ behalf. Toberoff was blindsided by the termination letter. He “had received no indication of any kind from the [heirs] that [the firm’s] services and performance were not fully satisfactory.” B. Daigle’s Involvement There is little evidence of Daigle’s involvement in the matter up to this point. In multiple email threads among Donnes, the heirs, and Betancourt in the month leading up to the termination of the Toberoff firm, Daigle’s name appears only once, in passing. This occurred in an email dated September 23,

5 2018, from one of the heirs, Leslyn Randazzo, to the other heirs and Betancourt. In the email, Randazzo recounted a recent conversation with Donnes during which Donnes “[m]ade reference to . . . his . . .

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Toberoff & Associates v. Daigle CA2/1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toberoff-associates-v-daigle-ca21-calctapp-2023.