Wilcox v. Career Step, LLC

929 F. Supp. 2d 1155, 2013 WL 839936, 2013 U.S. Dist. LEXIS 33427
CourtDistrict Court, D. Utah
DecidedMarch 6, 2013
DocketCase No. 2:08-cv-0998
StatusPublished
Cited by4 cases

This text of 929 F. Supp. 2d 1155 (Wilcox v. Career Step, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilcox v. Career Step, LLC, 929 F. Supp. 2d 1155, 2013 WL 839936, 2013 U.S. Dist. LEXIS 33427 (D. Utah 2013).

Opinion

MEMORANDUM DECISION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT

CLARK WADDOUPS, District Judge.

I. INTRODUCTION

The court heard oral argument on Defendant Career Step’s Motion for Partial Summary Judgment [Dkt. No. 174] on February 5, 2013 and took the parties’ positions as argued during the hearing under advisement. The court has also carefully reviewed the parties’ submissions in support of and opposition to Defendant’s motion — as well as the Development Agreement (the “Agreement”) at the heart of this lawsuit [Dkt. No. 175-1] — and finds that, as a threshold matter, the statute of limitations bars Plaintiffs claim of fraud in the inducement in entering into the Agreement. The Agreement is therefore enforceable, and the court will enforce it under governing principles of Utah law. The Agreement provides that Defendant jointly owns the copyright at issue in this dispute. Accordingly, Plaintiffs claims for copyright infringement fail as a matter of law. And as discussed below, the court also grants Defendant’s motion on Plaintiffs accounting and intentional interference with prospective economic relations claims, but denies the motion as to Plaintiffs abuse of personal identity claim.

II. BACKGROUND

The court has discussed the primary facts underlying Plaintiffs claims in its Order and Memorandum Decision dated February 19, 2010 dismissing Plaintiffs unjust enrichment and unfair competition claims [Dkt. No. 97] and refers here to that discussion for a general review of the background. In short, for purposes of this motion, Plaintiff argues that a genuine dispute of material fact exists as to whether she was fraudulently induced (through fraudulent actions including coercion) into signing the Agreement on July 23, 2003. If true, this would also cast a shadow over the ownership of the copyright at issue in the Agreement. She also claims that a genuine dispute of material fact exists about whether Defendant intentionally interfered with her prospective economic relations when she tried to interest a fellow member of her church congregation in doing business with her. Finally, she presents facts showing that Defendant’s liability for abuse of her personal identity — by continuing to use marketing materials prepared by Plaintiff or referring to her or using her image — is genuinely in dispute.

A. Oral Agreement and Fraudulent Inducement or Coercion

Plaintiff argues that she entered into an oral agreement with Defendant in July of 2002 pursuant to which she spent “thousands of hours preparing the medical coding Course” that eventually became the “Curriculum” at the center of the Development Agreement. (Pl.’s Opp. Mot. Part. Summ. J., xi ¶¶ ll.a-ll.p [Dkt. No. 232].) Under this oral agreement, Plaintiff believed she would receive a 5% gross royalty from Defendant’s use and sale of the course and a $10,000 completion bonus,1 [1159]*1159that she would be hired by Defendant to provide student support services, and that she would be the sole owner of the copyright to the course, which she also believed would stay in her family upon her death. (Id. at xii ¶ ll.b.) Plaintiff claims she relied on the terms of this alleged oral agreement “in spending an entire year, or more, creating the Course.” (Id. at xiii ¶ ll.e.) Defendant then allegedly “leveraged the thousands of hours of time and effort Mrs. Wilcox spent in preparing the Course to string out payments and coerce her into signing away the underlying copyright in the Course when she had completed the Course and was near financial ruin.” (Id. at xiv ¶ ll.h.) According to Plaintiff, Defendant’s presentation of the written Agreement as a “take it or leave it” offer after Plaintiff had already invested her time and effort into creating the Course at her own expense unlawfully caused her to “assign away her copyright under extreme duress.” (Id. ¶ 11.L) Moreover, she did not understand the terms of the Agreement.2 And Plaintiff quotes Defendant’s CEO at the time, Andrea Anaya, as having said in her deposition that “[i]t was never our intention to pay her to develop the course.” (Id. at xv ¶ ll.n.)3

On July 23, 2003, Plaintiff signed the Agreement, which she claims “contained numerous terms, conditions, and responsibilities to be undertaken by [Plaintiff] that had not been previously discussed or negotiated by the parties.” (Id. at xxi ¶ 25.)4 At a meeting on or about March 25, 2003, Plaintiff for the first time saw the “final [Agreement] as provided to her by Mr. Dunn with terms significantly different from those discussed during the negotiations with Mrs. Anaya.” (Id. at xxii ¶ 26.) But eventually, after reading the entire Agreement (id. at xx ¶ 21), she voluntarily (id. at xvi ¶ 12), though “reluctantly,” signed it anyway (id. at xviii ¶ 16; xxii ¶25). Additionally, she testified in her deposition that the royalty of 5% of gross revenue was “more or less fair,” though she claims in her Opposition that due to the alleged duress, she felt that “she had no other choice” but to accept that rate. (Id. at xxiii ¶¶ 28-29.)

Plaintiff explains that “the parties had been civil, cordial, and friendly in their exchanges up until February 16, 2006.” (Id. at xix ¶ 19.) It was not until then, alleges Plaintiff, that she realized that “Career Step never intended to pay her the royalties she was entitled to.” (Id. ¶ 18.) Defendant’s last royalty payment— which Plaintiff alleges was incomplete— was in mid-March 2006, after which Defendant declared Plaintiff in breach of the Agreement and stopped paying her royalties. (Id. ¶ 19.) Plaintiff then filed this

[1160]*1160lawsuit on December 30, 2008. (Id. at xx ¶ 20.)

The Agreement contains an integration clause that provides, in relevant part, as follows: “This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.” (Agreement at § 17 [Dkt. No. 175-1].) Moreover, the Agreement provides for the joint ownership of the copyright to the “Curriculum” as defined in section 2 of the Agreement:

The copyright to the Curriculum, as the Curriculum may be revised and updated from time to time by Wilcox (the “Copyright”), shall be jointly held in the names of Career Step and Wilcox. Nothing in this Agreement shall, however, affect any independent rights Career Step may have to the copyright of materials previously developed by Career Step and provided for the use of Wilcox in developing the Curriculum under Sections 2.1.4 and 2.1.5 (“Career Step Materials”). Wilcox agrees that she will not use any Career Step Materials for any purpose, other than incorporation of such materials in the Curriculum, without the prior written consent of Career Step, with the limited exceptions set forth in Articles 5 and 6. The Parties recognize that the Curriculum, as to which Wilcox holds a joint copyright, includes only the substantive content of the training materials, and does not include any part of the online delivery mechanism for the content, including but not limited to the technology that enables the content to be viewed, manipulated, graded, stored, and otherwise interacted with online (the “Online Technology Platform”).

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Bluebook (online)
929 F. Supp. 2d 1155, 2013 WL 839936, 2013 U.S. Dist. LEXIS 33427, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilcox-v-career-step-llc-utd-2013.