Hinson v. Calvary Records, Inc. et al.,
Filing
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ORDER signed by District Judge Troy L. Nunley on 3/23/2017 DENYING 8 Application for Right to Attach order and order for issuance of writ of attachment. (Donati, J)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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RONALD A. HINSON,
Plaintiff,
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ORDER
v.
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No. 2:15-cv-02227-TLN-EFB
CALVARY RECORDS, INC., et al.
Defendants.
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This matter is before the Court pursuant to Plaintiff Ronald A. Hinson’s
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(“Plaintiff”) application for right to attach order and order for issuance of writ of
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attachment (the “Application”). (ECF No. 8.) The San Joaquin County Sheriff, Coroner,
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Public Administrator (the “Public Administrator”), in his representative capacity as the
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Special Administrator of the Estate of Nelson S. Parkerson, Jr., filed an opposition. (ECF
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No. 22.) Plaintiff filed a reply. (ECF No. 23.) The Court has carefully considered the
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arguments raised by the parties.1 For the reasons set forth below, the Application is
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DENIED.
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///
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Because the Court has concluded that oral argument would not be of material assistance, it decides
the matter on the briefing in accordance with Eastern District Local Rule 230(g).
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I.
PROCEDURAL BACKGROUND
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This case arises out of the alleged misappropriation of royalties for songs
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copyrighted by Plaintiff. Plaintiff filed this suit on October 26, 2015. (Compl., ECF No.
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1.) On January 11, 2016, Plaintiff filed his first amended complaint (“FAC”) naming as
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defendants Calvary Records, Inc., a California corporation (“Calvary Records”), dba The
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Calvary Music Group dba Songs of Calvary; Songs of Calvary, an entity whose form of
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organization is unknown (“Songs of Calvary”); Calvary Music Group, Inc., a Tennessee
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corporation (“Calvary Music”); Nelson S. Parkerson, Jr. (“Parkerson”), deceased, by and
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through the Public Administrator, as special administrator of Parkerson’s estate, Phyllis
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Bradhurst (“Bradhurst”); Warner Chappell Music, Inc., a Delaware corporation (“Warner
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Chappell”); and Does 1 to 50, inclusive (collectively, “Defendants”). (ECF No. 7.)
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The FAC contains the following ten causes of action: (1) violation of the
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Copyright Act, 17 U.S.C. §§ 101 et seq., against all Defendants; (2) breach of fiduciary
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duty (constructive fraud) against all Defendants except for Warner Chappell; (3)
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conversion against all Defendants; (4) declaratory relief against all Defendants except for
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Warner Chappell; (5) breach of contract against all Defendants except for Warner
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Chappell; (6) rescission of contract against all Defendants except for Warner Chappell;
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(7) negligence against all Defendants; (8) common counts – money had and received
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against all Defendants except Warner Chappell; (9) common counts – money had and
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received against Warner Chappell and Does 1 to 50; and (10) accounting against all
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Defendants. (See ECF No. 7.)
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Also on January 11, 2016, Plaintiff filed the Application seeking to attach a
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particular Wells Fargo bank account (the “Account”) “in the name(s) of Calvary Records,
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Inc. dba The Calvary Music Group dba Songs of Calvary; Calvary Music Group, Inc.;
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Songs of Calvary; Nelson S. Parkerson, Jr.; Phyllis M. Bradhurst; or any one or
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combination of them.” (ECF No. 8 at 2.) To the extent the “account balance is
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insufficient or [the] account has been closed,” Plaintiff also seeks to attach “the net
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proceeds of the sale” of certain real property in Fresno, CA, more particularly described
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in the Application, in the amount of $171,000.00. (ECF No. 8 at 2.)
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II.
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Federal Rule of Civil Procedure 64 provides in pertinent part:
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At the commencement of and throughout an action, every remedy is available
that, under the law of the state where the court is located, provides for seizing a
person or property to secure satisfaction of the potential judgment . . . . The
remedies available under this rule include . . . attachment . . . .
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LEGAL STANDARD
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Fed. R. Civ. P. 64. The effect of Rule 64 is to incorporate state law to determine the
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availability of prejudgment remedies for the seizure of property to secure satisfaction of a
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judgment ultimately entered. Granny Goose Foods Inc. v. Bhd. of Teamsters & Auto
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Truck Drivers, Local No. 70 of Alameda Cty., 415 U.S. 423, 436 n.10 (1974). Thus,
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California law provides the rules governing the Application.
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In California, the procedures and grounds for obtaining orders for prejudgment
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writs of attachment are governed by California Code of Civil Procedure §§ 481.010–
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493.060. Blastrac, N.A. v. Concrete Sols. & Supply, 678 F. Supp. 2d 1001, 1004 (C.D.
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Cal. 2010). Attachment is a purely statutory remedy. Pos-A-Traction, Inc. v. Kelly-
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Springfield Tire Co., 112 F. Supp. 2d 1178, 1181 (C.D. Cal. 2000) (citing Jordan–Lyon
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Prods., Ltd. v. Cineplex Odeon Corp., 29 Cal. App. 4th 1459, 1466 (1994)). The burden
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is on the applicant to establish each element necessary for an attachment order by a
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preponderance of the evidence. Blastrac, 678 F. Supp. 2d at 1004–05 (citing Loeb &
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Loeb v. Beverly Glen Music, Inc., 166 Cal. App. 3d 1110, 1116 (1985)).
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“Except as otherwise provided by statute, an attachment may be issued only in an
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action on a claim or claims for money, each of which is based upon a contract, express or
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implied, where the total amount of the claim or claims is a fixed or readily ascertainable
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amount” not less than $500.00. Cal. Civ. Proc. Code § 483.010(a). California Code of
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Civil Procedure § 484.090 provides that before an attachment order is issued, the court
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must find all of the following: (1) the claim upon which the attachment is based is one
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upon which an attachment may be issued; (2) the applicant has established the “probable
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validity” of the claim upon which the attachment is based; (3) the attachment is not
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sought for a purpose other than recovery on the claim upon which the request for
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attachment is based; and (4) the amount to be secured by the attachment is greater than
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zero. Cal. Code Civ. Proc. § 484.090(a).
“The application for a right to attach order must be supported by an affidavit or
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declaration showing that the applicant, on the facts presented, would be entitled to a
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judgment on the claim upon which the proposed attachment is based.” Pos-A-Traction,
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Inc., 112 F. Supp. 2d at 1182 (citing Cal. Code Civ. Proc. § 484.030). “The affidavit or
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declaration must state the facts ‘with particularity.’” Id. (citing Cal. Code Civ. Proc. §
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482.040). Additionally, a writ of attachment will not be issued if the property to be
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attached is exempt. Cal. Code Civ. Proc. § 484.090(b); Gen. Elec. Capital Corp. v.
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Rhino Bus. Sys., Inc., No. 2:16-cv-00029-KJM-CMK, 2016 WL 2743557, at *3 (E.D.
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Cal. May 11, 2016).
PLAINTIFF’S AFFIDAVIT AND REQUEST FOR JUDICIAL NOTICE
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III.
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In connection with the Application, Plaintiff filed a declaration (ECF No. 8 at 5–
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13) (the “Hinson Declaration”).2 The Hinson Declaration refers to “Calvary Records,
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Inc., Songs of Calvary Publishing Company and/or their authorized agent and
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representative, Nelson S. Parkerson, Jr.” collectively as “Calvary” unless “separately
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designated.” (Hinson Decl. at ¶ 3.) The Court will do so as well in this section of the
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Order.
Plaintiff declares the following: Plaintiff is a professional songwriter and
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composer of gospel music. (Hinson Decl. at ¶ 2.) Plaintiff composed the lyrics and
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music to the songs “The Lighthouse” and “He Pilots My Ship” (the “Songs”), and
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subsequently registered the Songs with the U.S. Copyright Office. (Hinson Decl. at ¶¶
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2–3.) Plaintiff entered into a contractual relationship with Calvary Records, Inc. and
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Songs of Calvary Publishing, with Parkerson acting on behalf of these entities, granting
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Songs of Calvary Publishing the right to “split-publish” the Songs. (Hinson Decl. at ¶ 3.)
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The Hinson Declaration was not docketed as a separate document from the Application. To avoid
confusion with the Application, citations to the Hinson Declaration refer to it as “Hinson Decl. at ¶ _.”
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Plaintiff indicates this arrangement meant that Plaintiff was entitled to “fifty percent of
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the income generated from the exploitation of the songs . . . as songwriter while the
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remaining fifty percent was to be apportioned between . . . [the] split-publishers.”
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(Hinson Decl. at ¶ 3.) Plaintiff has submitted two contracts entered into “between
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[Plaintiff] and Calvary” as Exhibits 1 and 2 of the Hinson Declaration. (See Hinson
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Decl. at ¶¶ 4–5.) The first was entered into on August 11, 1975 (the “1975 Agreement”)
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and the second on June 9, 1992 (the “1992 Agreement” and, together with the 1975
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Agreement, the “Agreements”)). The 1992 Agreement “expressly nullified all prior
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agreements between the parties except Part B of the 1975 Agreement.” (See Hinson
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Decl. at ¶ 5.) Each of the Agreements maintained this split-publishing arrangement. (See
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Hinson Decl. at ¶¶ 4–5.) The 1992 Agreement had a maximum term of “no more than
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forty-eight months” unless certain projects were not completed. (Hinson Decl. at ¶ 6.)
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However, the 1992 Agreement would not remain in effect, even if these projects were not
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completed, if “it can be shown that The Company was in anyway responsible for their
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incompleteness.” (Hinson Decl. at ¶ 6 (internal quotation marks omitted).)
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Plaintiff neither recalls any contact from Calvary or Parkerson nor receiving any
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royalties from Calvary since 2000. (Hinson Decl. at ¶ 7.) By this time Plaintiff
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“regarded the 1992 Agreement as having expired and [his] contractual relationship with
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Calvary as having terminated.” (Hinson Decl. at ¶ 7.) However, in approximately
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October 2012, in connection with an IRS audit, Plaintiff was presented with Form 1099s
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from Warner Chappell indicating he should have received approximately $67,000 in
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royalties for the Songs “during tax year 2010.” (Hinson Decl. at ¶ 8.) After inquiring
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with Warner Chappell, Plaintiff states he was provided copies of four cashed royalty
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checks (the “Checks”) totaling approximately $67,000.00 made out to “Ronnie Hinson
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D/B/A Songs of Calvary.” (Hinson Decl. at ¶ 12.) One of the Checks was purportedly
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endorsed by Plaintiff, but Plaintiff indicates this is a forgery. (Hinson Decl. at ¶ 12.) The
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Checks indicate they were cashed by Songs of Calvary and deposited in the Account.
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(Hinson Decl. at ¶ 12.) Copies of the Checks have been submitted as an exhibit to the
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Hinson Declaration.
Plaintiff states that he has been informed that Warner Chappell paid royalties to
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Calvary “from 2003 through 2005” and that he believes “[t]here may also have been
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payments made to Calvary since 2010” and “possibly . . . during 2002.” (Hinson Decl. at
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¶ 14.) Plaintiff believes that Bradhurst “is still collecting and receiving royalty payments
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under the names ‘Song of Calvary’ and other fictitious business names previously used
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by Nelson S. Parkerson, Jr. without the knowledge and consent of the Special
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Administrator of his Estate.” (Hinson Decl. at ¶ 15.)
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Plaintiff has submitted a Request for Judicial Notice requesting, among other
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things, for the Court to take judicial notice of an allegation made by certain of
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Parkerson’s “objecting heirs” in Superior Court of California, County of San Joaquin that
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“since 2010 Parkerson suffered from dementia and that he was the victim of undue
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influence and financial elder abuse perpetrated by” Bradhurst. (See ECF No. 8-3 at 2.)
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The Request for Judicial Notice is DENIED as the items Plaintiff would have judicially
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noticed are immaterial to the resolution of the Application.
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IV.
ANALYSIS
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The Court finds that Plaintiff’s Application should be denied for three reasons.
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First, Plaintiff has not satisfied his burden to establish the “probable validity” of his
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breach of contract claim as it pertains to the Checks or earlier royalty payments
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preceding them by failing to respond to the Public Administrator’s statute of limitations
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argument. See Cal. Civ. Proc. Code §§ 483.010(a), 484.090(a). Second, with respect to
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the breach of contract claims as it applies to possible royalty payments not covered by the
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Public Administrator’s statute of limitations argument, Plaintiff has failed to show these
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are in a fixed or “readily ascertainable” amount. See Cal. Civ. Proc. Code § 483.010(a).
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Third, Plaintiff has not met his burden to identify a statute that would permit an order of
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attachment for any of his non-contractual claims. See Cal. Civ. Proc. Code §§
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483.010(a), 484.090(a).
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In order to establish that a claim has “probable validity,” the plaintiff must show
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it is “more likely than not that the plaintiff will obtain a judgment against the defendant
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on that claim.” Cal. Civ. Proc. Code § 481.190; see also Blastrac, 678 F. Supp. 2d at
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1005. The Court makes this determination by “consider[ing] the relative merits of the
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positions of the respective parties and mak[ing] a determination of the probable outcome
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of the litigation.” Blastrac, 678 F. Supp. 2d at 1005 (quoting Loeb & Loeb, 166 Cal.
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App. 3d at 212). “[I]t is not enough for the plaintiff to make out a prima facie case for
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breach of contract; rather, the plaintiff must also show that the defenses raised are ‘less
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than fifty percent likely to succeed.’” Id. at 1005 (quoting Pet Food Express, Ltd. v.
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Royal Canin USA Inc., 2009 WL 2252108, at *5 (N.D.Cal.2009)).
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The Public Administrator argued that a “portion of [Plaintiff’s] causes of action
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are barred by the statute of limitations” and therefore Plaintiff should not receive “an
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attachment order in the full amount” he seeks. (ECF No. 22 at 11–12 (discussing the
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statute of limitations as they apply to six of Plaintiff’s causes of action).) In relevant
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part, the Public Administrator argued that a “four year statute of limitations applies” to
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Plaintiff’s breach of contract claim and that Plaintiff therefore “would not be entitled to
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recover any damages for the period before October 26, 2011” with respect to that claim
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because Plaintiff “initially filed this lawsuit on or about October 26, 2015.” (ECF No. 22
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at 12.) In particular, the Public Administrator submitted this would bar recovery for each
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of the Checks, which were “issued in April, July, and November of 2010 and in January
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2011.” (ECF No. 22. at 12–13.)
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The closest Plaintiff comes to discussing the Public Administrator’s statute of
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limitations argument as it pertains to his breach of contract claim is Plaintiff’s conclusory
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assertion that he has “met the requirements of . . . California Code of Civil Procedure §§
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481.010, et seq.” (ECF No. 23 at 10.) Quite simply, Plaintiff has not met his burden to
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demonstrate the probable validity of this claim. See Blastrac, 678 F. Supp. 2d at 1007
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(concluding plaintiff “ha[d] not shown probable validity because it [had] not effectively
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addressed [the opposing party’s] . . . defense”); Pet Food Exp. Ltd., 2009 WL 2252108,
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at *5 (concluding a party fails to demonstrate the probable validity of its claim where it
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“provide[s] no support for” the proposition that the opposing party’s defense is “less than
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fifty percent likely to succeed). Indeed, Plaintiff has made no effort to do so.
Plaintiff’s statement that “[t]here may also have been payments made to Calvary
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since 2010” does not change things. (Hinson Decl. at ¶ 14 (emphasis added).) The
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burden is on Plaintiff to establish each element necessary for an attachment order.
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Blastrac, 678 F. Supp. 2d at 1004–05. “[A]n attachment may be issued only in an action
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on a claim or claims for money, each of which is based upon a contract, express or
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implied, where the total amount of the claim or claims is a fixed or readily ascertainable
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amount.” Cal. Civ. Proc. Code § 483.010(a) (emphasis added). Speculation as to
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whether additional payments may have occurred in some unspecified amount fails to
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meet this burden.
Finally, Plaintiff’s discussion of the statute of limitations as it pertains to his
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copyright infringement claim is similarly to no avail. (ECF No. 23 at 3–5.) “Except as
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otherwise provided by statute, an attachment may be issued only in an action on a claim
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or claims for money, each of which is based upon a contract, express or implied . . . .”
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Cal. Civ. Proc. Code § 483.010(a) (emphasis added). Even assuming Plaintiff’s
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arguments are correct, Plaintiff has not met his burden to show that his copyright
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infringement claim is a “claim upon which the attachment is based is one upon which an
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attachment may be issued.” Cal. Civ. Proc. Code § 484.090; see also Loeb & Loeb, 166
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Cal. App. 3d at 1116. (explaining the applicant plaintiff has “the burden of proving . . .
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that his claim is one upon which an attachment may be issued”).
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IV.
CONCLUSION
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For the foregoing reasons, Plaintiff’s Application is DENIED.
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IT IS SO ORDERED.
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Dated: March 23, 2017
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Troy L. Nunley
United States District Judge
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