Spinelli et al v. National Footbal League et al

Filing 114

OPINION re: 105 MOTION for Entry of Judgment under Rule 54(b) . filed by David Drapkin, Paul Jasienski, David Stluka, George Newman Lowrance, Thomas E. Witte, Paul Spinelli, Scott Boehm. The Plaintiffs' motion to certify a final judgment on their copyright claims under Rule 54(b) is denied. It is so ordered. (As further set forth within this Order.) (Signed by Judge Robert W. Sweet on 8/11/2015) (ajs)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

----------------------------------------x
PAUL SPINELLI, SCOTT BOEHM, PAUL
JASIENSKI, GEORGE NEWMAN LOWRANCE, DAVID
STLUKA, DAVID DRAPKIN, and THOMAS E.
WITTE,
Plaintiffs,
13 Civ. 7398

(RWS)

- against OPINION
NATIONAL FOOTBALL LEAGUE, NFL PROPERTIES,
LLC, NFL VENTURES, L.P., NFL PRODUCTIONS,
LLC, NFL ENTERPRISES, LLC, REPLAY PHOTOS,
LLC, GETTY IMAGES (US), INC., ASSOCIATED
PRESS, ARIZONA CARDINALS HOLDINGS, INC.,
ATLANTA FALCONS FOOTBALL CLUB LLC,
BALTIMORE RAVENS LIMITED PARTNERSHIP,
BUFFALO BILLS, INC., PANTHERS FOOTBALL
LLC, CHICAGO BEARS FOOTBALL CLUB, INC.,
CINCINNATI BENGALS, INC., CLEVELAND
BROWNS LLC, DALLAS COWBOYS FOOTBALL CLUB,
DENVER BRONCOS FOOTBALL CLUB, DETROIT
LIONS, INC., GREEN BAY PACKERS, INC.,
HOUSTON NFL HOLDINGS LP, INDIANAPOLIS
COLTS, INC., JACKSONVILLE JAGUARS LTD.,
KANSAS CITY CHIEFS FOOTBALL CLUB, INC.,
MIAMI DOLPHINS, LTD., MINNESOTA VIKINGS
FOOTBALL CLUB LLC, NEW ENGLAND PATRIOTS,
LP, NEW ORLEANS LOUISIANA SAINTS, LLC,
NEW YORK FOOTBALL GIANTS, INC., NEW YORK
JETS FOOTBALL CLUB, INC., OAKLAND RAIDERS
LP, PHILADELPHIA EAGLES FOOTBALL CLUB,
INC., PITTBURGH STEELERS SPORTS, INC.,
SAN DIEGO CHARGERS FOOTBALL CO., SAN
FRANCISCO FORTY NINERS LTD., FOOTBALL
NORTHWEST LLC, THE RAMS FOOTBALL CO. LLC,
BUCCANEERS LIMITED PARTNERSHIP, TENNESSEE
FOOTBALL, INC., and WASHINGTON FOOTBALL
INC.,
Defendants.

----------------------------------------x
1

--

~---!\ u~P': SllNY
\

1

I

l )t 1CU l\il ENT

\1 I

LECT~ONICALLY FILED :.

DOC#.

, 1'~ATr: f.'TT
. , . ,, l. . . l-'

\\

J
1,

ED•£,-\ 3-1 ~·- \
~:?--

... _.. --~··"'·--·
•

•

_

I

•

<T-····- ... -

.. t.·

A P P E A R A N C E S:

Attorneys for the Plaintiffs
NELSON & MCCULLOCH LLP
155 East 56th Street
New York, NY 10022
By:
Danial A. Nelson, Esq.
Kevin Patrick McCulloch, Esq.

Attorneys for the Defendants
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
Four Times Square
42nct Floor
New York, NY 10036
By:
Jeffrey A. Mishkin, Esq.
Anthony Joseph Dreyer, Esq.
Jordan Adam Feirman, Esq.
Karen Hoffman Lent, Esq.
WILSON ELSER MOSKOWITZ EDELMAN & DICKER LLP
1133 Westchester Avenue
White Plains, NY 10604
By:
Jura Christine Zibas, Esq.
Jana A. Slavina, Esq.
DLA PIPER US LLP
1251 Avenue of the Americas
New York, NY 10020
By: Andrew Lawrence Deutsch, Esq.
Marc Evan Miller, Esq.
Paolo Morante, Esq.
Tamar Y. Duvdevani, Esq.

2

Sweet, D.J.

Plaintiffs Paul Spinelli, Scott Boehm, Paul Jasienski,
George Newman Lowrance, David Stluka, David Drapkin, and Thomas
E. Witte (the "Plaintiffs") have moved the court to certify its
recent dismissal of their copyright claims as a final,
appealable judgment pursuant to Federal Rule of Civil Procedure
54(b).

For the reasons set forth below, the motion for

certification is denied.

Prior Proceedings

This is the latest motion in a lawsuit brought by seven
professional photographers against the National Football League,
36 affiliated clubs and business organizations (collectively
with the National Football League, the "NFL"), the Associated
Press (the "AP"), and Replay Photos, LLC (collectively, the
"Defendants") alleging copyright, antitrust, breach of fiduciary
duty, and contract claims stemming from the Defendants' use and
licensing of the Plaintiffs' photographs.

On March 27, 2015,

the Court granted the Defendants' motion to dismiss without
prejudice, giving the Plaintiffs 20 days to file new pleadings.
Spinelli v. Nat'l Football League, No. 13 Civ. 7398, 2015 WL
3

------

1433370 (S.D.N.Y. Mar. 27, 2015)

(the "March 27 Order").l

A full

accounting of the plaintiffs' allegations and the case's
procedural history is available in that opinion.

Id. at *1-5.

Rather than file a new complaint, the Plaintiffs filed the
instant motion on May 11, 2015, asking the Court to certify its
dismissal of their copyright claims as a final judgment under
Rule 54 (b).

(Dkt. No. 105.)

They did, however, represent that

they were prepared to file a new complaint within 48 hours of
the court deciding the instant motion.
McCulloch, Dkt. No. 107,

~3.)

(Declaration of Kevin P.

The Defendants filed their

opposition papers on May 29, 2015 (Dkt. No. 110), the Plaintiffs
filed their reply brief on June 5, 2015 (Dkt. No. 112), and the
motion was heard on submission on June 10, 2015.

(Dkt. No.

113.)

Applicable Standard

Federal Rule 54(b) states in relevant part that "[w]hen an
action presents more than one claim for relief - whether as a
claim, counterclaim, crossclaim, or third-party claim - or when
multiple parties are involved, the court may direct entry of a

1 In the same opinion, the Court granted Defendant Getty Images (US), Inc.'s
motion to compel arbitration.
As the Plaintiffs are proceeding to
arbitration with Getty, (Pl. Mem. at 1 n.1), they are not seeking Rule 54(b)
certification of that portion of the Court's opinion and Getty is not a party
to this motion.

4

final judgment as to one or more, but fewer than all, claims or
parties only if the court expressly determines that there is no
just reason for delay."

The Supreme Court describes the

district court's role as being a "dispatcher" and explains that
it is "left to the sound judicial discretion of the district
court to determine the appropriate time when each final decision
in a multiple claims action is ready for appeal."
Wright Corp. v. Gen. Elec. Co.,

Curtiss-

446 U.S. 1, 8 (1980)

Sears, Roebuck & Co. v. Mackey, 351 U.S. 427,

435

(citing

(1956)).

The

Second Circuit has laid out a more parsimonious standard,
explaining that the district court's power under Rule 54(b)
should be "exercised sparingly" and "only if there are interests
of sound judicial administration and efficiency to be served, or
in the infrequent harsh case where there exists some danger of
hardship or injustice through delay which would be alleviated by
immediate appeal."

Adrian v. Town of Yorktown, 210 F. App'x

131, 132-33 (2d Cir. 2006)
Harris Corp.,

947 F.2d 627,

(quoting Harriscom Svenska AB v.
629 (2d Cir. 1991)).

Rule 54(b)

certification should generally not be given "if the same or
closely related issues remain to be litigated." See Nat'l Bank
of Washington v. Dolgov, 853 F.2d 57, 58

The Motion is Denied
5

(2d Cir. 1988).

As the Plaintiffs went about the process of drafting their
Second Amended Complaint, they came to the conclusion that while
the defects in their antitrust and contract-based claims could
be cured by repleading, their copyright claims could not be
similarly repaired.

(Pl. Mem., Dkt. No. 106, at 1-2.)

The

Plaintiffs had argued that a "retroactive license" such as the
one used by Defendant AP to grant the NFL a sublicense covering
use of the Plaintiffs' photos during the period before the AP
signed its own license agreement with the plaintiffs, was
unenforceable under the Second Circuit's holding in Davis v.
Bilge, 505 F.3d 90, 103.

See Spinelli, 2015 WL 1433370, at *32.

The Court rejected the argument, declaring that "the holding in
Davis was a narrow one that does not apply to the facts here."
See id. at *32, 32 n. 24.

The Court also interpreted the

Contributor Agreements between the Plaintiffs and the AP in
depth in order to determine whether the retroactive sublicenses
agreed to between the AP and NFL were permissible.
35.

Id. at *30-

The Plaintiffs contend that since the Court determined that

the retroactive license was valid and precluded their claims,
repleading will be futile and the ruling is functionally final.
(Pl. Mem. at 7.)
The Plaintiffs' request for a final judgment on their

6

copyright claims under Rule 54(b) necessarily fails because the
March 27 Order is not a final adjudication.

It is "well

established" in this Circuit that a district court's order
dismissing a complaint with leave to replead "is not final and
therefore not appealable."
590 F.2d 445, 448

Elfenbein v. Gulf & W. Industries,

(2d Cir. 1978); see 10 Charles Alan Wright &

Arthur R. Miller, Federal Practice and Procedure
2015)

§

2656 (3d ed.

("A dismissal for failing to state a claim upon which

relief may be granted that is made with leave to amend clearly
does not finally decide that claim, however, and Rule 54(b)
would not apply.").

Against this proposition, the Plaintiffs

argue that where the grounds for dismissal are based on legal
determinations rather than on pleading defects, an updated
pleading will not help the plaintiff's situation and a dismissal
without prejudice should therefore be considered final,

citing

Coniston Corp. v. Village of Hoffman Estates, 844 F.2d 461, 463
(7th Cir. 1988).

Unfortunately, the Plaintiffs do not cite to,

and the Court is unaware of, any precedent within the Second
Circuit for the proposition.

While the flexibility of the

approach taken by the Seventh Circuit may be a wise policy, cf.
Domino Sugar Corp. v. Sugar Workers Local Union 392, 10 F.3d
1064, 1066-67

(4th Cir. 1993)

(adopting the Coniston approach

because it "better serves judicial economy"), the Plaintiffs
7

cannot overcome the broad language in Elfenbein and its progeny.
Cf. Jackson v. Dep't of Labor, 431 F. App'x 21, 22
2011)

(2d Cir.

("Because the district court's order stated 'that

[Plaintiff] is granted leave to file an amended complaint within
thirty (30) days,' the order was not final.").
In any event, certification is not appropriate here because
the Plaintiffs' copyright claims are closely related to the
additional claims they seek to litigate. 2

The copyright claims

were ultimately defeated because the Court found the existence
of a valid licensing agreement between the Plaintiffs and the
AP, which allowed for a retroactive sublicense to the NFL.

See

Spinelli, 2015 WL 1433370, at *29-31 (discussing the licenses
and the contract law principles used to interpret them) ; see
also id. at *42

(granting motion to dismiss unjust enrichment

claim due to the existence of a "valid and enforceable"
contract).

The Plaintiffs indicate in their briefing that they

intend to argue that the contracts "were invalid and
unenforceable due to duress, coercion, unconscionability, and
fraud"

(Pl. Mem. at 3.), and the Court's March 27 Order

To a certain extent, any evaluation of the Plaintiffs' claims is speculative
because their Amended Complaint was dismissed by the March 27 Order and their
Second Amended Complaint has not yet been filed.
For the purposes of this
motion, the Court assumes that the issues to be raised in the. new complaint
will roughly mirror those dealt with in the March 27 Order, but with
additional factual allegations intended to strengthen them.
2

8

indicates that the argument may have significant merit.

See

Spinelli, 2015 WL 1433370, at *39 ("To be sure, the facts as
alleged by Plaintiffs tend to show that the precedents relating
to broad licensing, combined with the power and capacity of the
Defendants, and, by contrast, apparent relative lack of market
power of Plaintiffs, lead to a difficult result, approaching
unfairness, in this case.").

A finding in the Plaintiffs' favor

on their contract claims in the District Court would thus
significantly alter - or perhaps moot - their copyright claims
in the Court of Appeals, rendering certification improper.

See

In re Blech Sec. Litig., No. 94 Civ. 7696, 1997 WL 20833, at *2
( S. D. N. Y. Jan. 21, 19 97)

("where the resolution of the remaining

claims could conceivably affect an appellate court's decision of
the claims on appeal, a district court should be reluctant to
grant a Rule 54(b) motion."

(quotation omitted)

(citing Hogan v.

Consol. Rail Corp., 961 F.2d 1021, 1025-26 (2d Cir. 1992)) . 3
The Plaintiffs will not suffer any significant hardship or
injustice from delaying their appeal of the copyright claims
until the end of proceedings in the District Court.

3 The Plaintiffs'

The

contract-based allegations also undermine the argument that
the Court's dismissal of the copyright claims is de facto final, since a
finding that the AP's license was invalidated by fraud or duress would rob
the Defendants of their primary argument against copyright infringement. ~ee
Spinelli, 2015 WL 1433370, at *29.
The Defendants concede as much in their
briefing.
(See D.'s Mem. in Opp. at 13 n.3.)

9

Plaintiffs contend that they face "an impossible dilemma" in
which they may either "proceed with filing amended pleadings on
their other claims .

. or foregoing that option and allowing

the Court's Order to become final so that Plaintiffs may appeal
the ruling on their copyright claims and then institute an
entirely new action on their other claims."

(P. Mem. at 14-15.)

They also note that taking the latter course might prejudice
them since some of their remaining claims could have statute of
limitations issues.

(See id. at 15.)

However, the Plaintiffs

do not explain why they cannot simply restate their copyright
claims in their new complaint and then litigate the copyright
issues before the Second Circuit if and when the case reaches
the appellate level in its entirety. 4

Such an outcome would

cause no prejudice to the Plaintiffs other than delay, and would
adhere to "the normal and federally pref erred practice of
postponing appeal until after a final judgment has

4

In their opposition brief, the Defendants ask the Court (without making a
formal cross-motion) to enter final judgment on all the claims dismissed
without prejudice in the March 27 Order because the Plaintiffs filed their
motion for Rule 54(b) certification at the Court-ordered deadline instead of
a revised complaint.
(See D.'s Mem. in Opp., Dkt. No. 110, at 6-8.)
Although the Plaintiffs are technically out of compliance, such a result
would be unreasonably punitive. As the Defendants concede (see id. at 6),
the determination ultimately hinges on the Plaintiffs' diligence.
See Evans
v. Port Auth. of N.Y. & N.J., No. 02 Civ. 3482, 2003 WL 22287864, at *l
(S.D.N.Y. Oct. 3, 2003).
The Plaintiffs' diligence in this case has been
more than adequate, particularly as they have represented that they are
prepared to file their Second Amended Complaint within 48 hours of this
motion's resolution.

10

been entered."

Adrian, 210 F. App'x at 133.

The motion for

Rule 54(b) certification is therefore denied.

Conclusion

The Plaintiffs' motion to certify a final judgment on their
copyright claims under Rule 54(b) is denied.

It is so ordered.

New York, NY
August // , 2015
U.S.D.J.

11