Escolar Documentos
Profissional Documentos
Cultura Documentos
10
UNITED STATES DISTRICT COURT
11 CENTRAL DISTRICT OF CALIFORNIA
12
28
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 2 of 29 Page ID #:2
8 1. The Court has subject matter jurisdiction over this action pursuant to
9 28 USC 1332 because of a diversity of citizenship. Plaintiffs are residents of and
10 doing business in California, and Defendants are residents of and doing business in
11 Arkansas.
12
2. On information and belief, this Court also has personal jurisdiction
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over Defendants for the reasons, among others, that (i) Defendants transact
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business in California by marketing to potential business clients in California; and
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(ii) Defendants have entered into contracts within the state of California with
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distributors and licensees. Moreover, each of the Defendants engaged in
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negotiations and otherwise interacted with Plaintiff Rogers in California. As such,
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Defendants contacts with this state have been systematic and continuous in the
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sundry dealings they have had with filmmakers and producers similarly situated
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with Plaintiffs.
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 3 of 29 Page ID #:3
1 TRIAL BY JURY
2 4. Pursuant to Fed. R. Civ. P. 38(b), Plaintiffs hereby demand a trial by
3 jury on each and every one of the claims as pled herein.
4
PARTIES
5
5. Plaintiff XVIII ENTERTAINMENT, LLC (XVIII Entertainment) is,
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and at all times mentioned in this complaint was, a California limited liability
7
8
company organized under the laws of California.
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Defendant TRUMAN PRESS, INC. (Press) was and is an Arkansas corporation.
28 11. Plaintiffs are informed and believe that at all times mentioned herein,
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 4 of 29 Page ID #:4
16
continue in the corporate name to perpetuate the fraudulent plan, scheme and device
17
alleged in this complaint.
18 FACTUAL ALLEGATIONS
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14. Plaintiff XVIII Entertainment is the authorized distribution agency, as
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well as the licensing source for the feature films Revelations, Day of Redemption,
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Jobs Daughter and The Linda Vista Project (LVP), (collectively, the Pictures).
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15. Plaintiff Rogers as the principal of XVIII Entertainment had exclusive
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control and responsibility over the entirety of the creative process in developing,
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producing and directing the LVP, and at all times alleged herein was the copyright
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holder and owned all rights to the feature film LVP.
27 16. Emilio Roso d/b/a Knesset Pictures had exclusive control and
28 responsibility over the entirety of the creative process in developing, producing and
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 5 of 29 Page ID #:5
1 directing the LVP, and at all times alleged herein was the copyright holder who
2 granted Plaintiff XVIII Entertainment the rights to distribute and exploit, and the
3 copyright necessary to effect those rights, the feature films Revelations, Day of
4 Redemption, and Jobs Daughter (collectively, the Roso Films).
5 Plaintiff Rogers as the principal of XVIII Entertainment had exclusive
17.
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control and responsibility over the entirety of the distribution rights and sub-
7
licensing of the Pictures.
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18. Defendants Parkinson and Shefte as the key principals of company
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Defendants House, Press and Medallion had exclusive control and responsibility
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over the entirety of the distributing and sub-licensing the Pictures, receiving payment
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from third parties for granting such right, reporting to Plaintiffs for transactions that
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burdened the rights of the Pictures and revenue generated therefrom, reporting to
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Plaintiffs for costs incurred by Defendants regarding the Pictures, and generally
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update and respond to inquiries by Plaintiffs regarding the Pictures.
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19. Defendants House and Medallion are in the business of marketing and
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distributing filmand television programs in all applicable formats and media for
18 theatrical releases; and for home video, video-on-demand, and digital sales and
19 licensing in the territory of the United States of America and English-speaking
20 provinces of Canada, and worldwide.
21 20. In or around summer 2016, Defendants Parkinson and Shefte began to
22 discuss and negotiate with Plaintiff Rogers as principal of Plaintiff XVIII
23 Entertainment a potential agreement for Defendants to market and distribute one or
24 more feature films to which XVIII Entertainment had or would acquire the rights to
25 distribute and exploit.
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21. On or around 24 June 2016, Plaintiff XVIII Entertainment and
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Defendant House entered into a written sales distribution agreement (the
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Agreement) in which Defendant House received the exclusive right to advertise,
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 6 of 29 Page ID #:6
1 market, license, and distribute the feature film LVP for VOD and home-media
2 packaged goods (e.g., DVDs, BluRays) in the U.S. and Canada (the Domestic
3 Territory). In return, Plaintiffs were entitled to a fee from the gross revenue of the
4 Pictures for seven (7) years. A true and correct copy of the Agreement is attached
5 hereto as Exhibit A.
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22. Necessarily implied in agreements such as the Agreement is the
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affirmative obligation of the distributor-licensee to provide forthright and complete
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reports to the licensor of all new agreements entered into, the revenue earned, the
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revenue received, and any recoupable expenses paid by the licensee during the
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reporting period for each film. In the event no agreements were executed, revenue
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generated, revenue received or expenses incurred for a film, a distributor-licensees
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report is short and simple.
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23. The standard reporting period in the motion-picture industry for
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agreements between producer-licensor of feature films and distributor-licensees of
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those films is a calendar quarter (e.g., January-March); the report for each quarter is
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generally due within 45 days after the end of the reporting period (i.e., the end of the
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calendar quarter).
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$200,000.00).
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32. To date, Plaintiffs have not received any fees per the Agreement.
19 Defendants have not remitted any payment to Plaintiffs and have not communicated
20 with Plaintiffs regarding such payment.
21 33. Plaintiffs are informed, believe and thereon allege that Defendants have
22 distributed, and continue to distribute the Pictures in various forms, including but
23 not limited to home video or video-on-demand, and have retained the entirety of the
24 profits there from, and have failed to provide any accounting or otherwise
25 communicate with Plaintiffs as to the nature and extent of the Pictures gross
26 proceeds despite Plaintiffs repeated demands.
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34. Plaintiffs are informed, believe and thereon allege that Defendants have
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profited from the distribution of the Pictures. Thus, Defendants are in breach of the
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 8 of 29 Page ID #:8
1 Agreement for failure to pay any monies to Plaintiffs pursuant to the Agreement and
2 their representations to Plaintiffs
3 35. Plaintiffs are informed, believe and thereon allege that Defendants have
4 failed to meet their contractual and industry-standard reporting obligations to
5 Plaintiffs by failing to provide Plaintiffs with any reports about the Pictures,
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including without limitation any agreements or licenses with third parties regarding
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each of the Pictures, third-party reports provided to Defendants regarding sales or
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rentals of each of the Pictures, revenue generated from each of the Pictures,
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recoupable costs incurred by Defendants regarding each of the Pictures, and other,
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standard reporting data for the Pictures. Thus, Defendants are in breach of the
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Agreement for failure to perform pursuant to the Agreement.
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36. As a result of Defendants failure to, among other things, market,
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advertise, and distribute the Pictures, Plaintiffs have been damaged and continue to
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suffer damages from Defendants failures to perform and breaches of the Agreement.
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Plaintiffs are informed and believe that the extent of such damages is within the
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jurisdictional limits of this Court.
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37. Despite repeated requests for reporting of revenue generated by
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failed to otherwise perform their duties in the Agreement in any reasonable manner.
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Defendants continue to breach the Agreement for their failure to perform.
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parties in performance and enforcement of the contract.
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47. Defendants have acted in bad faith by not performing their obligations
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Plaintiffs.
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52. Defendants breached their duties of loyalty and good faith by, among
1 withheld Plaintiffs share of the revenue for their own benefit, disregarding
2 Plaintiffs rights to their share, and then misrepresented the nature and extent of the
3 sales with the purpose of deceiving Plaintiffs into believing that they were not owed
4 anything. Accordingly, Plaintiffs are entitled to an award of punitive or exemplary
5 damages in an amount to be determined at trial.
6
FOURTH CAUSE OF ACTION
7
FALSE PROMISE
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(Against Parkinson, House and Medallion)
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55. Plaintiffs repeat, reallege, and incorporate by reference each and every
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allegation contained in all proceeding paragraphs, inclusive, as though fully set forth
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herein.
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56. Leading up to the entry into the Agreement and thereafter, Defendants
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made several promises to Plaintiffs that they would market, advertise, license, and
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distribute the Pictures pursuant to the terms of the Agreement, in order to induce
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Plaintiffs into retaining their services under the false pretenses that Defendants
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would perform and utilize their industry expertise, rather than abscond with
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Plaintiffs bargained-for profits.
19 57. Plaintiffs are informed, believe, and thereon allege that Defendants did
20 not intend to perform these promises to market, advertise, license, and distribute the
21 Pictures when they made them.
22 58. Defendants intended that Plaintiffs rely on these promises and induced
23 Plaintiffs into believing that Defendants would market, advertise, license, and
24 distribute the Pictures.
25 59. Plaintiffs reasonably relied on Defendants promises, and went forth
26 without looking for other marketing agents and distributors for the Pictures in
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reliance of Defendants promises.
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60. Defendants did not perform the promised acts of marketing,
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 13 of 29 Page ID #:13
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Plaintiffs have suffered, and will continue to suffer, substantial general and special
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damages, including but not limited to: loss of goodwill and revenue, as well as by:
19 (1) being deprived of additional lost sales and revenues that could have been earned
20 from the Pictures; (2) being deprived of the opportunity costs incurred in having
21 been unable to market and distribute the Pictures through other sources; and (3)
22 being deprived of its agreed to profits pursuant to the terms of the Agreement.
23 Accordingly, Plaintiffs have been damaged in an amount to be proven at trial.
24 65. Plaintiffs are informed and believe that the aforementioned conduct of
25 Defendants was carried out as part of a deliberate scheme to preclude Plaintiffs from
26 the benefits of the Agreement. Such conduct was oppressive and fraudulent, and
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subjected Plaintiffs to cruel and unjust hardship in a willful and conscious disregard
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of their rights, warranting exemplary and punitive damages pursuant to Civil Code
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 14 of 29 Page ID #:14
1 3294, for the reasons set forth herein and for at least the following reasons:
2 a. It was done with the purposeful and intentional design of putting
3 Defendants own interests ahead of Plaintiffs rights and interests,
4 in order to deprive Plaintiffs of their share of the revenue from the
5 Pictures.
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b. It was done with malice and with the intent to injure Plaintiffs with
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willful and conscious disregard of Plaintiffs rights, financial
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wellbeing and the foreseeable damages and losses caused thereby.
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FIFTH CAUSE OF ACTION
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UNJUST ENRICHMENT
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(Against All Defendants)
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66. Plaintiffs repeat, reallege, and incorporate by reference each and every
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allegation contained in all proceeding paragraphs, inclusive, as though fully set forth
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herein.
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67. As a result of Defendants pervasive wrongful conduct described
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above, Defendants have been unjustly enriched at the expense of Plaintiffs in the
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form of sales and royalties paid by distributors and licensees with whom Defendants
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licensees.
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75. Plaintiffs reasonably relied on the Defendants representations and
1 the benefits of the Agreement. Such conduct was oppressive and fraudulent, and
2 subjected Plaintiffs to cruel and unjust hardship in a willful and conscious disregard
3 of their rights, warranting exemplary and punitive damages pursuant to Civil Code
4 3294, for the reasons set forth herein and for at least the following reasons:
5 a. It was done with the purposeful and intentional design of putting
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Defendants own interests ahead of Plaintiffs rights and interests,
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in order to deprive Plaintiffs of their share of the revenue from the
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Pictures.
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b. It was done with malice and with the intent to injure Plaintiffs with
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willful and conscious disregard of Plaintiffs rights, financial
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wellbeing and the foreseeable damages and losses caused thereby.
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SEVENTH CAUSE OF ACTION
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FRAUDULENT CONCEALMENT
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(Against Parkinson, House and Medallion)
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79. Plaintiffs repeat, reallege, and incorporate by reference each and every
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allegation contained in all proceeding paragraphs, inclusive, as though fully set forth
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herein.
19 80. Plaintiffs are informed and believe and thereon allege that Defendants
20 knowingly and willfully conspired between themselves to defraud Plaintiffs by
21 cooperatively engaging in the fraudulent withholding of Plaintiffs share of profits,
22 and the extent of revenue generated from the Pictures.
23 81. Plaintiffs are informed and believe and thereon allege that all the
24 Defendants acting in concert, intended to hide the receipt of the sales and therefore
25 improperly withheld Plaintiffs shares between the Defendants.
26 82. Specifically, HOUSE and MEDALLION misappropriated,
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misdirected, and otherwise converted Plaintiffs share of revenue from the Pictures.
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83. Defendants intended to deceive Plaintiffs by concealing the sales
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 17 of 29 Page ID #:17
1 figures and their misappropriation of Plaintiffs share of the revenue derived from
2 the Pictures, including concealing their failure to transfer 75% of the revenue as
3 promised. Defendants, and each of them, concealed the funds from Plaintiffs for the
4 purpose of hindering, delaying and otherwise lulling Plaintiffs into not pursuing the
5 recovery of their share.
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84. Plaintiffs reasonably relied on Defendants deception because
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Defendants were Plaintiffs fiduciaries and were, in fact, the ones to hold and
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disperse Plaintiffs share of the revenue derived from the Pictures. Defendants had
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exclusive licensing rights of the Pictures and were therefore in complete control of
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all revenue derived from such. Defendants improperly withheld the funds and were
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involved in making direct misrepresentations to Plaintiffs regarding the disposition
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of Plaintiffs share of the revenue, which Defendants knew were false and were made
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deliberately to mislead, obfuscate and otherwise deter Plaintiffs from discovering
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the fraudulent concealments and transfers made with Plaintiffs share of the revenue.
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85. As a result, Plaintiffs were harmed in an amount according to proof,
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plus interest at the legal rate from and after 1 September 2016.
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Defendants concealment was a substantial factor in causing Plaintiffs harm.
19 86. Plaintiffs are informed and believe that the aforementioned conduct of
20 Defendants was carried out as part of a deliberate scheme to preclude Plaintiffs from
21 the benefits of the Agreement. Such conduct was oppressive and fraudulent, and
22 subjected Plaintiffs to cruel and unjust hardship in a willful and conscious disregard
23 of their rights, warranting exemplary and punitive damages pursuant to Civil Code
24 3294, for the reasons set forth herein and for at least the following reasons:
25 a. It was done with the purposeful and intentional design of putting
26 Defendants own interests ahead of Plaintiffs rights and interests,
27
in order to deprive Plaintiffs of their share of the revenue from the
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Pictures.
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 18 of 29 Page ID #:18
1 b. It was done with malice and with the intent to injure Plaintiffs with
2 willful and conscious disregard of Plaintiffs rights, financial
3 wellbeing and the foreseeable damages and losses caused thereby.
4 EIGHTH CAUSE OF ACTION
5 UNFAIR BUSINESS PRACTICES
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(Against All Defendants)
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87. Plaintiffs repeat, reallege, and incorporate by reference each and every
8
allegation contained in all proceeding paragraphs, inclusive, as though fully set forth
9
herein.
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88. Plaintiffs are informed, believe, and thereon allege that Defendants
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wrongful conduct constituted unlawful, unfair or fraudulent business acts or
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practices proscribed by Californias Unfair Business Practices Act, or Business and
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Professions Code 17-200, et seq., including but not limited to the deprivation of
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money and property.
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89. Defendants unlawful, unfair, and fraudulent business acts or practices
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include, but are not limited to, failure to market, advertise, license, and distribute the
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Pictures, as agreed, directing Plaintiffs to cease business relations with other parties;
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statutes of other states, and California common law.
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Plaintiffs are also entitled to recover any of Defendants profits derived from the
1 98. Pursuant to the written Agreement entered into between Plaintiffs and
2 Defendants, Defendants agreed to pay to Plaintiffs a fee, consisting of a percentage
3 of the gross revenue from distribution of the Pictures.
4 99. As a result of Defendants numerous fraudulent acts described herein,
5 Plaintiffs have suffered damages and Defendants have received money, a portion of
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which is due to Plaintiffs from Defendants per the Agreement.
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100. Plaintiffs have demanded an accounting of the aforementioned
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transactions from Defendants and payments but Defendants have failed and refused,
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and continues to fail and refuse, to render such an accounting and to pay such sum.
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101. The amount of money due from Defendants to Plaintiffs is unknown to
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Plaintiffs and cannot be ascertained without an accounting of the receipts and
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disbursements of the aforementioned transactions.
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102. Accordingly, Plaintiffs demand an accounting from Defendants in
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order to determine the amount of money due per the Agreement.
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TENTH CAUSE OF ACTION
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FRAUDULENT INDUCEMENT
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(Against Parkinson, House and Medallion)
19 103. Plaintiffs repeat, reallege, and incorporate by reference each and every
20 allegation contained in all preceding paragraphs, inclusive, as though fully set forth
21 herein.
22 104. Plaintiffs are informed and believe and thereon allege that Defendants
23 knowingly and willfully conspired between themselves to defraud Plaintiffs by
24 affirmatively promising to perform the obligations set forth in the Agreement
25 without the intent to actually perform those obligations.
26 105. Plaintiffs are informed and believe and thereon allege that all the
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Defendants acting in concert, intended to engage Plaintiffs in the Agreement
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requiring Plaintiffs provide Defendants with the source material necessary to
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 21 of 29 Page ID #:21
1 distribute and exploit the Pictures, and thereafter retain all revenue for themselves
2 without regard to their obligations in the Agreement.
3 106. Specifically, Parkinson and Shefte, as representatives of House and
4 Medallion, represented they would diligently market the Pictures to home-media-
5 packaged-goods retailers, such as Wal-Mart, Target, Amazon, etc., digital-media
6
sellers, such as Netflix, and various television exhibitors, and for each and every sale
7
or licensing agreement pay Plaintiffs 75% (after recoupment) of the amount
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Defendants received.
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107. These statements by Parkinson and Shefte were false.
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108. Parkinson and Shefte knew they were false when they represented them
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to Plaintiffs, but made the false representations to Plaintiffs to induce them to rely
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on such statements and enter into the Agreement. Defendants knew that Plaintiff
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XVIII Entertainment would send Defendants the source material necessary to
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distribute and profit off the Pictures, if Defendants could engage Plaintiffs in the
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Agreement.
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109. Plaintiffs did rely on Defendants false statements to their detriment by
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entering into the Agreement and transferring the source material of the Pictures to
1 plus interest at the legal rate from and after 1 September 2016.
2 111. Defendants inducement was a substantial factor in causing Plaintiffs
3 harm.
4 112. Plaintiffs are informed and believe that the aforementioned conduct of
5 Defendants was carried out as part of a deliberate scheme to preclude Plaintiffs from
6
the benefits of the Agreement. Such conduct was oppressive and fraudulent, and
7
subjected Plaintiffs to cruel and unjust hardship in a willful and conscious disregard
8
of their rights, warranting exemplary and punitive damages pursuant to Civil Code
9
3294, for the reasons set forth herein and for at least the following reasons:
10
a. It was done with the purposeful and intentional design of putting
11
Defendants own interests ahead of Plaintiffs rights and interests,
12
in order to deprive Plaintiffs of their share of the revenue from the
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Pictures.
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b. It was done with malice and with the intent to injure Plaintiffs with
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willful and conscious disregard of Plaintiffs rights, financial
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wellbeing and the foreseeable damages and losses caused thereby.
18
ELEVENTH CAUSE OF ACTION
1 distribute the Roso Pictures in all forms, formats and media in all territories in the
2 world.
3 116. Plaintiff XVIII Entertainment was prevented from transferring revenue
4 to Roso for the distribution and exploitation of the Roso Pictures because Defendants
5 refused to inform or transform revenue from the distribution and exploitation of the
6
Roso Pictures to Plaintiff XVIII Entertainment.
7
117. Defendants knew that by failing to inform or remit revenue to Plaintiff
8
XVIII Entertainment, Plaintiff XVIII Entertainment would not be able to update or
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remit revenue to Roso.
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118. Plaintiffs have suffered harm from Defendants interference.
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119. Defendants conduct is a substantial factor in causing Plaintiffs harm.
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120. Plaintiffs are informed and believe that the aforementioned conduct of
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Defendants was carried out as part of a deliberate scheme to preclude Plaintiffs from
14
the benefits of the Agreement. Such conduct was oppressive and fraudulent, and
15
subjected Plaintiffs to cruel and unjust hardship in a willful and conscious disregard
16
17
of their rights, warranting exemplary and punitive damages pursuant to Civil Code
18
3294, for the reasons set forth herein and for at least the following reasons:
11
Plaintiffs had engaged them with respect to distributing and exploiting the Pictures
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limitation, the remittance of revenue generated by Defendants from exploiting the
19 Pictures.
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126. Defendants owed a duty of care to Plaintiffs commensurate with those
21
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127. Defendants breached their duty to Plaintiffs by not meeting industry
- 24 -
CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 25 of 29 Page ID #:25
4
128. But for Defendants breaches of duty, Plaintiffs would not have
24
CIVIL CONSPIRACY
25
(Against All Defendants)
26 131. Plaintiffs repeat, reallege, and incorporate by reference each and every
27 allegation contained in all proceeding paragraphs, inclusive, as though fully set
28 forth herein.
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CASE NO.: COMPLAINT
Case 2:17-cv-04987-SVW-E Document 1 Filed 07/06/17 Page 26 of 29 Page ID #:26
1 132. Defendants Parkinson and Shefte were aware and did plan to acquire the
2 rights to the Pictures, exploit them for monetary gains and keep those gains for
3 themselves after expressly promising Plaintiffs that Defendant House would share
4 the revenue according to the terms of the Agreement.
5 133. Defendants Parkinson and Shefte agreed between themselves and with
6
others to defraud Plaintiffs and Roso by retaining all revenue generated by
7
Defendants from the exploitation of the rights of the Pictures.
8
134. Defendants Parkinson and Shefte should be deemed personally and
9
jointly and severally liable for any award of monetary damages arising from this
10
action
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FOURTEENTH CAUSE OF ACTION
12
DECLARATORY RELIEF
13
(Plaintiff XVIII Ent. Against House and Medallion)
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135. Plaintiffs repeat, reallege, and incorporate by reference each and every
15
allegation contained in all preceding paragraphs, inclusive, as though fully set forth
16
17
herein.
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136. Plaintiffs seek the Courts declaration that the Agreement and all
17
PRAYER FOR RELIEF
18
WHEREFORE, Plaintiffs pray for judgment against Defendants as follows:
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1. Issue a Court Order requiring all revenues payable to or based upon an
18
agreement with one or more Defendants related to or arising from
7
LAW OFFICE OF CRISTOPHER G. SABOL
8
Dated: 6 July 2017
9
/Cristopher G. Sabol, Esq./
10
Cristopher G. Sabol, Esq.
11
Attorney for Plaintiffs
12 JOHN J.K. ROGERS and XVIII
ENTERTAINMENT, LLC
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CASE NO.: COMPLAINT