Initial Brief of Big Ligas
Initial Brief of Big Ligas
Initial Brief of Big Ligas
Appellants,
v.
Appellee.
INTRODUCTION ........................................................................................ 8
ARGUMENT ............................................................................................. 22
2
TABLE OF CONTENTS
(Continued)
Page
3
TABLE OF CITATIONS
Page
Cases
Allett v. Hill,
422 So. 2d 1047 (Fla. 4th DCA 1982) ................................................... 33
Allman v. Wolfe,
592 So. 2d 1261 (Fla. 2d DCA 1992) .................................................... 41
Andersen Windows, Inc. v. Hochberg,
997 So. 2d 1212 (Fla. 3d DCA 2008) .................................................... 28
Anderson v. Liberty Lobby, Inc.,
477 U.S. 242 (1986) .............................................................................. 34
Antoniazzi v. Wardak,
259 So. 3d 206 (Fla. 3d DCA 2018) ...................................................... 29
4
TABLE OF CITATIONS
(Continued)
Page
Lee v. Cole,
46 So. 3d 612 (Fla. 2d DCA 2010) ........................................................ 41
Lipsig v. Ramlawi,
760 So. 2d 170 (Fla. 3d DCA 2000) ...................................................... 38
Loxahatchee River Envtl. Control Dist. v. Martin County Little Club, Inc.,
409 So. 2d 135 (Fla. 4th DCA 1982) ..................................................... 41
5
TABLE OF CITATIONS
(Continued)
Page
Penley v. Eslinger,
605 F.3d 843 (11th Cir. 2010) ............................................................... 35
Real Estate Value Co., Inc. v. Carnival Corp.,
92 So. 3d 255 (Fla. 3d DCA 2012) ........................................................ 23
Ruotal Corp., N. W., Inc. v. Ottati,
391 So. 2d 308 (Fla. 4th DCA 1980) ..................................................... 38
Sch. Bd. of Broward Cty. v. The Great Am. Ins. Co.,
807 So. 2d 750 (Fla. 4th DCA 2002) ..................................................... 17
St. Petersburg Yacht Charters, Inc. v. Morgan Yacht, Inc.,
457 So. 2d 1028 (Fla. 2d DCA 1984) .................................................... 47
Teague v. Teague,
122 So. 3d 938 (Fla. 4th DCA 2013) ..................................................... 32
White v. White,
141 So. 3d 645 (Fla. 4th DCA 2014) ..................................................... 32
Statutes
6
TABLE OF CITATIONS
(Continued)
Page
7
INTRODUCTION
8
STATEMENT OF THE CASE AND FACTS
Recording Agreement.”
Id. (Note: It is the 4th component of the Deal Memo’s Term that will be
important going forward on appeal.)
During the Deal Memo’s initial three-year term, Big Ligas secured an
“exclusive recording agreement” — as contemplated by the Deal Memo’s
Term (its 4th component). On January 2, 2019, Big Ligas entered into the
10
(Thus, the 4th component of the Deal Memo’s Term was triggered,
“extend[ing] the Deal Memo’s Term ‘until six mo[n]ths following the expiration
11
2) The “License Period,” (which essentially is the sales, or revenue
generating period).
Id.
Importantly, in the Artist Inducement Letter attached to the Warner
Agreement — signed by Londra — Londra expressly ratified the Warner
Agreement. A:235–43.
On March 2, 2020, Big Ligas and Warner entered into a “Second Album
Amendment” (the “Warner Amendment”). A:247–48.
Big Ligas was obligated to deliver the Second Album by “no later than
July 2021.” A:247–48.
On May 23, 2019, Londra released his first album under the Warner
Agreement. A:6–7, 260, 342–43. Thus, the “Term” of the Warner Agreement
— both the “Recording Period” and “License Period” — was to run until May
23, 2024. See A:196. And, accordingly, the Deal Memo’s “Term” was
extended until November 23, 2024, or “(6) moths [sic] following the expiration
of the ‘Term’ of the such Recording Agreement.” A:189.
But around the time of the album’s release, Londra broke off
communications with Oviedo and Salazar and refused to further honor his
obligations under the Deal Memo. A:260, 342–43. Litigation ensued.
12
III. LITIGATION ENSUED.
A:263–66.
amended. A:294–335.1
Londra’s Second Amended Complaint, the operative complaint,
primarily sought declaratory relief. A:315–16. Londra sought a declaration
1
Londra’s subsequent action was consolidated into Big Ligas’s first-filed
action. A:292–93.
13
• “[W]hether or not Londra [was] bound by the terms of the purported
Warner Latina Amendment.”
Id.2
Agreement’).” A:6, 10. Londra agreed that the Warner Agreement was such
a Recording Agreement that could extend the Deal Memo’s Term. But he
interpreted the Warner Agreement’s definition of “Term” as comprising only
the “Recording Period,” but not the five-year “License Period.” Id.
Londra concluded, therefore, that the Deal Memo ended in February
2021, (wholly ignoring the Warner Agreement’s five-year “Licensing Period”
2
Londra also asserted other claims, (A:317–34), which remain pending.
14
(2) Big Ligas Parties’ Response in Opposition.
The Big Ligas Parties opposed Londra’s motion for partial summary
judgment, arguing the Deal Memo did not expire until, at least, November
23, 2024. A:52–68. That is, Deal Memo’s Term — by its plain, clear and
unambiguous language, had not expired; indeed, Londra’s argument, the Big
Ligas Parties pointed out in opposition, failed to credit the Warner
both periods ran. Id. The Deal Memo was thus extended beyond the initial
15
Deal Memo period to November 23, 2024 — six months after expiration of
the Warner Agreement’s “Term.”3
The trial court entered its Order [on] Paulo Londra’s Motion for Partial
Summary Judgment (the “Partial Summary Judgment”), granting Londra’s
motion and declaring that (i) the Deal Memo expired on February 20, 2021,
and, (ii) that the Warner Amendment was unenforceable. A:153.
The trial court ruled “that the Deal Memo is clear and unambiguous.”
A:149.
But the trial court nonetheless discussed and relied upon extrinsic facts
and circumstances surrounding the Deal Memo’s execution, as well as the
3
The Big Ligas Parties also moved for summary judgment separately from
their response in opposition to Londra’s motion for summary judgment.
A:69–85. The Big Ligas Parties’ motion was based on their interpretation of
the Deal Memo and Warner Agreement set forth in their response to Londra’s
motion, and sought a ruling that the Deal Memo expired no earlier than
November 23, 2024. Compare id., with 52–68. The Big Ligas Parties’
motion for summary judgment was fully briefed. A:86–132 (Londra’s
response).
16
And, after declaring the Deal Memo to be clear and unambiguous, the
trial court nonetheless applied four separate canons of construction to
construe the Deal Memo against the Big Ligas Parties.4 A:149–50.
4
Sch. Bd. of Broward Cty. v. The Great Am. Ins. Co., 807 So. 2d 750, 752
(Fla. 4th DCA 2002) (explaining that the rule of construction that the contract
should be interpreted against the drafter is “at best ... a secondary rule of
interpretation, a ‘last resort’ which may be invoked after all of the ordinary
interpretative guides have been exhausted and there remain two or more
reasonable interpretations of the language in question”).
17
“License Period” was not part of the “exclusive recording agreement”
contemplated by Deal Memo. Thus, concluded the trial court, “[a]ny potential
extension of the Deal Memo’s [T]erm would end six months after the Warner
Agreement’s Recording Services Term on May 30, 2020.” A:151.
The trial court rejected the Big Ligas Parties’ interpretation that the
granting Salazar and Oviedo (as managing members of Big Ligas) the power
to enter into recording agreements as requiring “Londra’s approval before
entering into any deal, such as the Warner Amendment.” A:152–53. If
Londra’s consent to enter recording agreements was not required, reasoned
18
the trial court, the Big Ligas Parties could “unilaterally enter into recording
agreements for Londra’s services,” and “extend the Deal Memo’s term in
the Warner Amendment, and did not concern enforceability of the original
Warner Agreement (to which Londra assented).
19
SUMMARY OF ARGUMENT
The trial court entered judgment in Londra’s favor on his two requested
declarations, ruling that: (i) the Deal Memo expired on February 20, 2021
(not November 23, 2024), its duration determined solely by the original
Warner Agreement’s “Recording Services Term,” and not the full “Term”;
and (ii) the Warner Amendment was unenforceable.
five-year License Period. By the plain language of the Deal Memo and
Warner Agreement, therefore, the Deal Memo did not end until six months
after the License Period ended — on May 23, 2024. Which is to say, the
Deal Memo did not end until November 23, 2024.
Moreover, the trial court’s analysis improperly considered evidence
extrinsic to the Deal Memo and Warner Agreement, and further resolved
20
THE WARNER AMENDMENT IS ENFORCEABLE
The trial court’s second declaration, that the Warner Amendment is
unenforceable, is separate from the analysis of whether the Deal Memo’s
authority.
Fourth, and finally, to the extent that the Deal Memo’s provisions are
internally inconsistent on Big Ligas ’s exclusive right to enter into recording
I. STANDARD OF REVIEW.
construction contrary to that of the trial court.” Fla. Bd. of Regents v. Mycon
Corp., 651 So. 2d 149, 153 (Fla. 1st DCA 1995).
February 21, 2018, and that he signed an inducement letter ratifying the
Warner Agreement entered into on January 2, 2019. See A:194–95, 243.
Setting aside the Warner Amendment for address in Section III, infra, these
are the first two agreements the trial court needed to examine to determine
when the Deal Memo expires. And, everyone agreed, and the trial court
ruled, that the Deal Memo was clear and unambiguous. See A:149, 153.
22
Memo’s Term is extended by the “Term” of a “exclusive recording
agreement” (plus six months), the Court must look at the definition of “Term”
2021 was the product of error at each step of the analysis. The trial court,
first of all, overwrote the plain language of both the Deal Memo and the
Warner Agreement. And then compounding its error, the trial court made
Again, the parties agreed, and the trial court ruled, that the Deal Memo
was clear and unambiguous. A:149, 153. And “[w]here a contract is clear
986 (Fla. 2015). Accord Dirico v. Redland Estates, Inc., 154 So. 3d 355, 357
(Fla. 3d DCA 2014) (quoting Real Estate Value Co., Inc. v. Carnival Corp.,
92 So. 3d 255, 260 (Fla. 3d DCA 2012) (“In the absence of some ambiguity,
23
the intent of the parties to a written contract must be ascertained from the
words used in the contract, without resort to extrinsic evidence.”).
Memo’s “Term”:
1) The initial 3-year period;
2) Automatic 1-year renewal periods;
3) The members’ right to terminate after the initial 3-year term, unless
4) Big Ligas enters into “an exclusive recording agreement with a Major
Label,” which extends the Deal Memo’s Term “until six mo[n]ths
24
And it is the fourth component that is at issue here. Under section 4,
once Big Ligas entered into “an exclusive recording agreement,” i.e., the
Warner Agreement, the Deal Memo was extended for a period equal to the
“Term” of the “exclusive recording agreement,” plus six months.
The analysis starts with the fact beyond dispute that the “exclusive
follows:
the Deal Memo does not expire “until six mo[n]ths following the expiration of
the ‘Term’ of … such Recording Agreement.” A:189 (emphasis added).
Thus, under the plain terms of both contracts, the Deal Memo does not expire
“until six mo[n]ths following the expiration of the ‘Term’ [i.e., both “Recording
Services Term” and “License Period”] of … such Recording Agreement.”
A:189, 196.
The trial court, however, rejected that specific and express definition of
“Term,” instead finding that “[a]ny potential extension of the Deal Memo’s
term would end six months after the Warner Agreement’s Recording
Services Term.” A:151 (emphasis added). That is, the trial court struck
“Term” from the Deal Memo and inserted in its place “Recording Services
Term,” illustrated as follows:
Deal Memo Plain Language Trial Court’s Interpretation
“If … [Big Ligas] shall enter into an “If … [Big Ligas] shall enter into an
exclusive recording agreement with a exclusive recording agreement with a
Major Label or other third party record Major Label or other third party record
label (a “Recording Agreement”), label (a “Recording Agreement”),
[Londra] shall not have the right to [Londra] shall not have the right to
terminate the Term as described in terminate the Term as described in
the preceding sentence and the Term the preceding sentence and the Term
shall not expire until the date six (6) shall not expire until the date six (6)
moths [sic] following the expiration of moths [sic] following the expiration of
the ‘Term’ of the such Recording the ‘Term’ Recording Services Term
Agreement.” of the such Recording Agreement.”
27
In other words, the trial court rewrote the Deal Memo’s express
definition by replacing
A:189. The trial court thus reduced the full “Term” to a partial “Term.”
Such re-write of this expressly defined term was error. Lafont, 271 So.
3d at 5.
“The law is quite clear that courts may not rewrite, alter, or add to the
terms of a written agreement between the parties and may not substitute
their judgment for that of the parties in order to relieve one from an alleged
28
interpretation in Londra’s favor. A:149–50. But it is well-established that
“[t]he canons of construction cannot be used when the contract is
2018)). The parties agreed, and the trial court ruled, that the Deal Memo
was unambiguous. Application of the canons of construction to support the
tortured interpretation Londra advanced was reversible error.
The trial court’s failure to apply — and indeed, its complete alteration
of — the plain language of the unambiguous Deal Memo warrants reversal.
Section 4 of the Deal Memo and section 2 of the Warner Agreement make
clear that the Deal Memo did not expire on February 21, 2021, but rather
extended until six months after the full “Term” of the Warner Agreement. And
the full “Term” of the Warner Agreement extended until — at least — 2024.5
A:189, 196.
At bottom, the trial court’s ruling that the Deal Memo expired on
February 21, 2021 because the “exclusive recording agreement” spanned
only the length of the “Recording Services Term” was contrary to the plain
language of both the Deal Memo and Warner Agreement. That language
5
The Big Ligas Parties also maintain, and argue as a separate point of
reversal below, that its Amendment to the Warner Agreement was valid, and
thus the Warner Agreement’s “Term” was extended, thereby further
extending the Deal Memo. See Point III, infra.
29
was unambiguous: the Deal Memo was extended by the “Term” of any
“recording services agreement” (A:189), and the expressly defined “Term”
of the Warner Agreement included the five-year License Period. A:196. The
trial court’s ruling that the Deal Memo was only extended by the “Recording
Services Term” improperly rewrote this unambiguous language.6
With the five-year License Period properly included, the Deal Memo
currently still has full force and effect. The License Period, and thus the
Warner Agreement’s full “Term”, expires on May 23, 2024 (five years from
release of the first album). See A:342 (admitting album released on May 23,
2019). The Deal Memo, in turn, expires 6 months thereafter, on November
23, 2024. A:189. Because the Deal Memo has not yet expired, the Partial
6
More to the point, the trial court failed to give voice to, and harmonize, all
provisions of the contracts as a whole. Lafont, 271 So. 3d at 5 (“An
interpretation of a contract which gives a reasonable, lawful and effective
meaning to all of the terms is preferred to an interpretation which leaves a
part unreasonable, unlawful or of no effect.”) That is, by narrowly interpreting
the Warner Agreement’s “Term” as the “Recording Services Term” only, and
not the “Licensing Period,” the trial court rendered useless the Deal Memo’s
express grant to Big Ligas of the right to exploit any records, which
necessarily occurs after the record is made. A:188, 193. And to exploit
the works, the Deal Memo obligated Londra to actively promote and perform
any such recordings. A:190–91, 193. Once again, obligations arising after
the record is made. Those rights and obligations are superfluous if the Deal
Memo ends once the record is complete. The trial court’s interpretation,
therefore, is simply incongruous with the Deal Memo’s plain language.
30
Summary Judgment should be reversed and judgment entered in Big Ligas’s
favor.7
To reach its finding that the “Term” of the Warner Agreement was only
the Recording Services Term, the trial court also made an improper factual
determination that the License Period was not part of the Warner Recording
The trial court considered pre-suit emails from the Big Ligas Parties’
Agreement and the Deal Memo’s Term. See A:150, 151–52 n.1. Making
matters worse, the trial court also drew improper inferences from those
7
Big Ligas filed a cross-motion for summary judgment on Londra’s
declaratory judgment action, based on its interpretation that the Deal Memo
was still in effect. A:69–85. And, under the recently amended summary
judgment rule, the Court can grant judgment on this matter of law, sua
sponte. Fla. R. Civ. P. 1.510(f).
31
documents and failed to consider conflicting evidence in the record. All of
Leaving aside for the moment that the trial court was precluded from
resolving material issues of fact on summary judgment, the parties certainly
agreed, and the trial court so ruled, that the Deal Memo’s plain language was
clear and unambiguous. A:149, 153. And because the Deal Memo is “clear
and unambiguous,” the parol evidence rule confined the trial court’s gaze to
“the four corners of the document[s].” Teague v. Teague, 122 So. 3d 938,
942 (Fla. 4th DCA 2013). Accordingly, the trial court was precluded from
considering extrinsic, parol evidence to rewrite the Deal Memo and Warner
Agreement’s plain terms.
“It is only when a term in a [contract] is ambiguous or unclear that the
trial court may consider extrinsic evidence as well as the parties’
interpretation of the contract to explain or clarify the language.” White v.
White, 141 So. 3d 645, 646 (Fla. 4th DCA 2014). (emphasis added). In other
words, the parol evidence rule “bar[s] the consideration of any extensive [sic]
evidence to explain or vary the express terms of a contract unless an
32
may be introduced, therefore, there must be a threshold showing of
ambiguity. Id.
No such showing was made, of course. Thus, it was error for the trial
court to consider the events surrounding the contracts’ negotiation and
execution, as well as post-execution, out-of-court statements by the Big
The Big Ligas Parties maintain that nothing other than the Deal
Memo’s clear and unambiguous language can be consulted to interpret its
“Term.” And the Deal Memo’s language is clear that its “Term” extends six
months beyond the full “Term” of the Warner Agreement, which expressly
includes both “Recording Services Term” and “Licensing Period.” Reversal
is warranted based on this unambiguous language alone. That much is clear
so far.
But should there be any doubt that the Deal Memo is clear and
unambiguous (contrary to the trial court’s ruling and the position of all
8
“[A]dmission of parol evidence to add a term to [the] written lease which,
whether part of the preliminary negotiations or a separate subsequent
condition, plainly violates … the doctrines of merger and the parol evidence
rule.” Duval Motors Co. v. Rogers, 73 So. 3d 261, 265 (Fla. 1st DCA 2011)
(internal quotation marks omitted) (ellipsis in original) (emphasis added)
(quoting Allett v. Hill, 422 So. 2d 1047, 1050 (Fla. 4th DCA 1982)).
33
parties), factual issues would preclude summary judgment. And to that point,
the trial court not only erred in resolving factual issues based on extrinsic
evidence, but drew improper inferences from the extrinsic evidence even so
far as to disregard evidence that favored the Big Ligas Parties.
In other words, assuming an ambiguity (there was none), the exercise
of resolving the ambiguity, based on parol evidence, should have been left
for a trier of fact and was improper on summary judgment.
THE SUMMARY JUDGMENT BURDEN
Londra, as the moving party, bore the initial burden of showing the
court that there were no genuine issues of material fact that should be
decided at trial. See Clark v. Coats & Clark, Inc., 929 F.2d 604, 607 (11th
Cir. 1991).9 Londra could only carry that burden by “showing” or “pointing
out” to the court that there was an absence of evidence to support the Big
Ligas Parties, the non-moving parties’ case. See Celotex Corp. v. Catrett,
477 U.S. 317, 325 (1986). Londra did not, and cannot, meet that burden.
9
Effective May 1, 2021, the Florida Supreme Court amended Florida Rule of
Civil Procedure 1.510 to “adopt almost all the text of Federal Rule of Civil
Procedure 56,” and expressly incorporate the “federal summary judgment
standard” as “announced in Celotex Corp. v. Catrett, 477 U.S. 317 (1986),
Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (1986), and Matsushita Elec.
Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574 (1986), and more
generally to case law interpreting Federal Rule of Civil Procedure 56.” In re
Amend. To Fla. R. Civ. P. 1.510, 317 So. 3d 72, 81 (Fla. 2021). See also
Fla. R. Civ. P. 1.510 (May 1, 2021), Court Notes to 2021 Amend.
34
And, “[i]n determining the relevant set of facts at the summary
judgment stage, [the court] must view all evidence and make any reasonable
inferences that might be drawn therefrom in the light most favorable to the
non-moving party,” here, the Big Ligas Parties. Penley v. Eslinger, 605
F.3d 843, 848 (11th Cir. 2010) (emphasis added; citation and quotation
omitted).
THE FACTUAL ISSUES PRECLUDING SUMMARY JUDGMENT
In interpreting the Deal Memo’s “Term,” and concluding that the Deal
Memo terminated on February 20, 2021, the trial court relied on pre-suit
emails from the Big Ligas Parties’ attorney purportedly espousing Big Ligas’s
understanding of the Warner Agreement’s Term. See A:150–52. These
emails did not demonstrate the absence of evidence to support Big Ligas’
interpretation of the Deal Memo, however.
The trial court’s interpretations of the emails do not convey their actual
language, and are a result of improper inference drawing. In fact, the
language quoted by the trial court in no way contradicts Big Ligas’s position.
Contrary to the trial court’s inference, for example, Big Ligas’s attorney’s
statement that “the Warner Agreement’s Recording Services Term expires
‘on or about today’ [Nov. 22, 2019]” does not mean that Big Ligas believed
the Warner Agreement’s full “Term” ended that day, only the “Term’s” first
period. A:150–52 (emphasis added). That position is, of course, entirely
consistent with the text of the Warner Agreement’s definition of “Term.”
35
And Big Ligas’s attorney’s statement that the Deal Memo “endures for
a minimum o[f] three years from execution, i.e., until February 20, 2021”
4) Big Ligas enters into “an exclusive recording agreement with a Major
Label,” which extends the Deal Memo’s Term “until six mo[n]ths
following the expiration of the ‘Term’ of … such Recording Agreement.”
A:189.
The email’s statement that the initial period under the Deal Memo’s
“Term” was three years in duration is accurate, and in no way undermines
Big Ligas’s interpretation of the fourth and final component of the Deal
Memo’s “Term,” whether “an exclusive recording agreement” was executed.
The trial court drew improper inferences from the emails that, at
most, should have been left for a trier of fact.
Furthermore, even assuming a proper inference could be drawn from
the emails that the Big Ligas Parties intended the Warner Agreement’s
“Term” to be limited to the “Recording Services Term,” additional evidence
36
in the summary judgment record conflicted with such an inference and thus
required resolution by the trier of fact.
section 2: the Term is both the “Recording Services Term” and the “License
Period.” A:516–18, 527..
And, as argued during the trial court’s hearing on summary judgment
(see A:410), Londra’s own attorney, Helen Yu, sent a proposal to Warner
for a “recording agreement,” which contained the License Period as a
material term. A:83, 363. That is, in March 2020, in the midst of the parties’
37
that the License Period should not be included in the Warner Agreement and
considered part of its “Term.”10
To be sure, the Big Ligas Parties maintain that the Warner Agreement
is clear and unambiguous that its “Term” includes both “Recording Services
Term” and “Licensing Period.” But, to the extent the trial court found the
Warner Agreement ambiguous and had any doubt about whether the
License Period was part of the Warner Agreement (and thus part of its
“Term”), the trial court should have denied summary judgment because this
was a question of fact. Simply put, once the trial court determined it needed
to look outside of the agreement (i.e, at the emails), the issue should have
been sent to the jury — especially because of the conflicting evidence in the
As argued above, the Partial Summary Judgment’s ruling that the Deal
Memo had expired should be reversed based on the trial court’s failure to
10
Yu’s statements and understandings are imputed to Londra as a matter of
law because she was his agent. See, e.g., Lipsig v. Ramlawi, 760 So. 2d
170, 186 (Fla. 3d DCA 2000) (“Professionals, such as lawyers and
accountants are always agents of their clients”); Ruotal Corp., N. W., Inc. v.
Ottati, 391 So. 2d 308, 309 (Fla. 4th DCA 1980) (“It is axiomatic that
knowledge of the agent constitutes knowledge of the principal as long as the
agent received such knowledge while acting within the scope of [her]
authority.”).
38
apply the plain language of the Deal Memo and original Warner Agreement,
which together provide that the Deal Memo extends until 2024. See Point
II.A., supra. And to the extent the Deal Memo and Warner Agreement’s
language was ambiguous (it was not) issues of fact precluded summary
judgment. See Point II.B., supra.
That is, Londra sought summary judgment on two specific requests for
declaration: (i) that the Deal Memo expired in February, 2021, and (ii) that
the Warner Amendment was unenforceable. A:12, 21, 315.
39
Without this indispensable party, the trial court could not rule on the Warner
Agreement’s enforceability.
Second, the plain language of the Deal Memo grants to Big Ligas the
discretion and power to enter into recording agreements without Londra’s
consent.
And, of course, to the extent any ambiguity appeared in the Deal Memo
relative to Big Ligas’s authority to enter into agreements, factual issues
precluded summary judgment on this issue.
Revenue v. Cummings, 930 So. 2d 604, 607 (Fla. 2006). “The general rule
in equity is that all persons materially interested, either legally or beneficially,
in the subject-matter of the suit, must be made parties either as complainants
or defendants, so that a complete decree may be binding upon all parties.”
Id.
It cannot be denied that Warner has a legal interest in the Warner
40
as a party to the Warner Amendment. Warner is, therefore, an
indispensable party. See, e.g., Allman v. Wolfe, 592 So. 2d 1261, 1263 (Fla.
2d DCA 1992) (“In an action for rescission of a transaction, the parties to the
transaction are indispensable.”); Lee v. Cole, 46 So. 3d 612, 613 (Fla. 2d
DCA 2010) (grantee under deed was indispensable party to action that
declared deed void); Loxahatchee River Envtl. Control Dist. v. Martin County
Little Club, Inc., 409 So. 2d 135, 137 (Fla. 4th DCA 1982) (party to escrow
agreement and underlying property development agreement indispensable
party).
Because Warner was an indispensable party to Londra’s declaratory
action to void the Warner Amendment, the Partial Summary Judgment must
be reversed.
as follows.
Section 2 of the Deal Memo grants Big Ligas ownership of “the Works
and all copyrights and all other neighboring and intellectual property rights
41
therein,” and further provides that Big Ligas’s “exclusive right to exploit the
Works will be perpetual.” A:188.
42
they are not the “Works” themselves, i.e., the “musical compositions,
recordings, performances, endorsements,” etc. A:193. The Warner
A:188–89. Thus, under Section 3(a), Big Ligas has unlimited power to sell,
license, or exploit Works and Goods and separately also has unlimited power
language of section 3(a) stating the members would “develop together Joint
Venture Business Plans,” which would “be subject to [Londra’s] review and
approval.” A:188.
43
These sections on the Joint Venture Business Plan, by their plain
terms, do not mention or concern recording agreements with third-party
Once again, the trial court’s Partial Summary Judgment has rewritten
the Deal Memo’s plain terms. This error warrants reversal and remand. The
plain language of the Deal Memo authorized the Big Ligas Parties’ to “enter
44
into” the Warner Amendment — without Londra’s prior approval. Thus, the
Warner Amendment is valid and enforceable.
To the extent that the Deal Memo’s sections granting the Big Ligas
Parties “exclusive” authority “without limitation” to enter into record
the business plan also concerns the Big Ligas’ Parties exclusive and
unlimited right to enter into recording agreements with third parties, then the
Partial Summary Judgment must be reversed for further proceedings to
resolve the ambiguity created by these conflicting provisions. Palazzolo v.
Fessler, 680 So. 2d 607, 608 (Fla. 2d DCA 1996) (“When the wording of an
agreement is ambiguous and parties suggest different interpretations, the
45
(3) The Deal Memo’s Grant of Exclusive Authority to Enter
into Third-Party Recording Agreements is Not Against
Public Policy.
46
effect that harms consumers in the relevant market” are unreasonable and
thus unlawful.).11
And the trial court’s ruling that the Deal Memo’s plain terms granting
the Big Ligas Parties exclusive authority to enter third-party recording
agreements, like the Warner Amendment, create an “absurd result” is wrong
11
The Florida legislature has adopted as the law of Florida the body of
antitrust law developed by the federal courts under the Sherman Act. St.
Petersburg Yacht Charters, Inc. v. Morgan Yacht, Inc., 457 So. 2d 1028,
1032 (Fla. 2d DCA 1984).
47
And the trial court’s interpretation of the Deal Memo as giving the Big
Ligas Parties the “ability to extend the Deal Memo any number of times,
party. A:189. Thus, any extension of the Term of the Deal Memo is subject
to a condition precedent over which Big Ligas does not have unilateral
control. Big Ligas alone cannot enter into a Recording Agreement, which is
12
The concept that contracts “in perpetuity are not favored,” by the way,
applies only to real property interests, which are not at play here. See A:149
(Partial Summary Judgment citing Miren Intern. Lodging Corp. v. Manley,
982 So. 2d 1203 (Fla. 5th DCA 2008)). The Florida Supreme Court has
made clear that “[t]he rule against perpetuities ... is ‘a rule of property law,
not of contract law.’” Old Port Cove Holdings, Inc. v. Old Port Cove Condo.
Ass'n One, Inc., 986 So. 2d 1279, 1287–88 (Fla. 2008).
13
To be clear, the Partial Summary Judgment’s ruling on “restraint of trade”
and resort to public policy arguments concerned only the Warner
Amendment (i.e., Big Ligas’s authority to enter into the Amendment without
Londra’s assent). The trial court did not extend its ruling to any agreement
that required or had Londra’s consent — i.e., the Deal Memo and the original
Warner Agreement. In other words, the trial court’s (erroneous) finding that
the Warner Amendment was unenforceable on public policy grounds has
nothing to do with the enforceability of the Deal Memo and the Warner
Agreement, both of which Londra unquestionably consented to and which
run through November 23, 2024.
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CONCLUSION
not expire until 2024 — six months after the Warner Agreement’s five-year
License Period. The trial court impermissibly wrote out the License Period,
and did so by relying on extrinsic evidence outside the four-corners of the
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Respectfully submitted,
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CERTIFICATE OF SERVICE
I certify that, on October 4, 2021, pursuant to Fla. R. Gen. Prac. & Jud.
Admin. 2.516, this Initial Brief was served via the Florida courts ePortal on:
CERTIFICATE OF COMPLIANCE
I hereby certify that this brief was prepared in Arial, 14-point font, in
and does not exceed 13,000 words, in compliance with Rule 9.210(a)(2)(B).
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