RONALD S.W. LEW, Senior District Judge.
Currently before the Court is Defendants Caroline Dimech ("Dimech") and Fierce Flix's (collectively "Defendants") Motion to Dismiss Complaint for Declaratory Judgment [14]. Defendants move the Court to dismiss Plaintiff Taryn Manning's ("Plaintiff") Complaint for declaratory judgment in its entirety. The Court, having considered all arguments presented,
The Court
This action arises out of a dispute between Plaintiff and Defendants over a trailer for the yet-to-be produced film at issue entitled "Droppers." Beginning in approximately 2007, Plaintiff partnered with Defendant Dimech to produce the motion picture tentatively titled "Droppers" (hereinafter "the Film.") Compl. ¶ 1. In February 2015, Plaintiff and Dimech produced a trailer for "Droppers" (hereinafter "the Trailer").
Plaintiff now seeks a judicial declaration of the following: (1) "[T]he parties' respective rights and obligations with respect to the copyright allegedly belonging to Defendants;" (2) "[T]hat she is not infringing, has not infringed, and is not liable for infringing any valid copyright owned by Defendants, either directly, or by inducing others to infringe, or by contributing to the infringement of others;" (3) "Defendants do not have an interest in the purported copyright to the motion picture screenplay tentatively titled `Droppers' sufficient to confer standing on them to pursue claims of infringement."
Plaintiff filed her Complaint against Defendants on July 29, 2015 [1]. On September 11, 2015, Defendants filed the present Motion to Dismiss [14]. On October 27, 2015, Plaintiff filed her Opposition to Defendants' Motion to Dismiss [18]. On November 3, 2015, Defendants filed their Reply [19].
Federal Rule of Civil Procedure 12(b)(6) allows a party to move for dismissal of one or more claims if the pleading fails to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). Dismissal can be based on "the absence of sufficient facts alleged under a cognizable legal theory."
"While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the `grounds' of his `entitle[ment] to relief' requires more than labels and conclusions, and a formulaic recitation of a cause of action's elements will not do."
Local Rule 11-1 provides: "All documents, except declarations, shall be signed by the attorney for the party or the party appearing pro se. The name of the person signing the document shall be clearly typed below the signature line." L.R. 11-1. Here, Defendants' failed to sign their Motion to Dismiss [14].
It is well settled that a district court may dismiss an action "based on a party's . . . failure to comply with federal or local rules of civil procedure."
Local Rule 7-3 requires that "counsel contemplating the filing of any motion shall first contact opposing counsel to discuss thoroughly, preferably in person, the substance of the contemplated motion and any potential resolution." L.R. 7-3. The Local Rule further requires that this conference shall take place at least seven (7) days prior to the filing of the motion.
This Court may, in its discretion, refuse to consider Defendants' Motion for failure to comply with Local Rule 7-3.
As a preliminary matter, this Court will clarify the nature and purpose of a Rule 12(b)(6) motion to dismiss. The question presented by a motion to dismiss is not whether the plaintiff will ultimately prevail in the action, but whether the plaintiff is entitled to offer evidence in support of its claim.
As the aforementioned exceptions do not apply to the present case, this Court declines to construe Defendants' Motion to Dismiss [14] as a motion for summary judgment at this early juncture. Here, Defendants' Motion to Dismiss rightfully focuses on the sufficiency of Plaintiff's Complaint. Defendants' Motion makes no reference to or arguments against papers outside of the pleadings. Rather, only the Plaintiff seeks to use moving papers as support for the sufficiency of her Complaint. Plaintiff provides extensive new argument and evidence in her Opposition. However, this Court will not construe Defendants' Motion as a motion for summary judgment, and as such declines to consider the new evidence and allegations brought forth in Plaintiff's Opposition and accompanying exhibits.
Further, Plaintiff's argument that Defendants' 12(b)(6) Motion is really an "improperly styled" motion to dismiss for lack of subject matter jurisdiction is not persuasive.
The Declaratory Judgment Act provides that "[i]n a case of actual controversy within its jurisdiction . . . any court of the United States . . . may declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought." 28 U.S.C. § 2201(a).
However, while the Declaratory Judgment Act "created a new procedural mechanism for removing the threat of impending litigation, it did not expand the jurisdiction of federal courts."
"To establish that a particular declaratory action presents an actual case or controversy, a party is required to show that, under all the circumstances of the case, there is a substantial controversy between parties having adverse legal interests, and the controversy is of sufficient immediacy and reality to warrant declaratory relief."
Plaintiff's Complaint does not present an "actual case or controversy" within the meaning of the Declaratory Judgment At, and as such, should be dismissed pursuant to Fed. R. Civ. P. 12(b)(6). Plaintiff's Complaint neither (1) adequately alleges that the parties have "adverse legal interests" nor (2) adequately alleges that the controversy is of "sufficient immediacy and reality to warrant declaratory relief." In her Complaint, Plaintiff merely states: "On June 30, 2015, Defendants threatened litigation against Plaintiff, asserting that Plaintiff is infringing upon Defendants' claimed copyright in the screenplay for the motion picture tentatively titled `Droppers.' On July 25, 2015, Defendants again threatened imminent litigation based on this purported copyright infringement, unless Plaintiff gave in to certain demands. As an actual controversy exists by way of the Defendants' credible threat of immediate litigation and demand for monetary compensation, Plaintiff seeks relief from this Court." Compl. ¶ 10. Plaintiff then adds further vague allegations which lend no more support to her declaratory judgment claim: "Plaintiff is informed and believes that Defendants claim that they own and have standing to pursue claims for infringement of an alleged copyright in . . . and that Plaintiff has infringed such copyright by using copyrighted material without Defendants' permission."
Plaintiff does not further expound upon why Defendants' threat may be "credible," including whether Defendants even hold a valid copyright registration for "Droppers" upon which they could sue Plaintiff. Plaintiff does not further detail whether or how litigation may have actually been "imminent" prior to her filing a declaratory judgment claim. Rather, Plaintiff simply states that "an actual controversy exists by way of the Defendants' credible threat of immediate litigation." Compl. ¶ 11. Plaintiff does not support this contention with any evidence or supporting factual allegations. In fact, Plaintiff's own Complaint shows that Defendants have previously threatened imminent litigation, and have yet to follow through on the initial threat.
Plaintiff has failed to show in her Complaint, as is her burden, that under all the circumstances of the case, there is a "substantial controversy between parties having adverse legal interests, and the controversy is of sufficient immediacy and reality to warrant declaratory relief."
"If a case is not ripe for review, then there is no case or controversy, and the court lacks subject-matter jurisdiction."
The Copyright Act requires that before any institution of an action for copyright infringement, there must be a copyright registered in compliance with sections 411 and 501(b). 17 U.S.C. §§ 411, 501(b) ("no civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration of the copyright claim has been made in accordance with this title."). Again, Plaintiff does not allege anywhere in her Complaint that Defendants have registered the Film or the Trailer for copyright. Thus, even if Defendants wished to pursue a claim for copyright infringement against Plaintiff, Plaintiff has not shown the Court that Defendants could in fact bring imminent litigation. Ultimately, Plaintiff has not shown this Court that the issue is fit for judicial decision at this juncture. Further, Plaintiff has not shown, in accordance with the Ninth Circuit's standard discussed above, that she will suffer direct and immediate hardship entailing more than possible financial loss. This Court finds that Plaintiff's claim is not "ripe" for adjudication. "If a case is not ripe for review, then there is no case or controversy, and the court lacks subject-matter jurisdiction" to hear the matter.
"A mere demand for declaratory relief does not by itself establish a case or controversy as necessary to confer subject matter jurisdiction. Thus, when the remedy sought is a mere declaration of law without implications for practical enforcement on the parties, the case is properly dismissed."
As discussed above, Plaintiff does not allege anywhere in the Complaint that Defendants have a registered copyright for the Film or the Trailer. Nonetheless, Plaintiff seeks a judicial declaration "of the parties' respective rights and obligations with respect to the copyright," "that she is not infringing, has not infringed, and is not liable for infringing" the copyright, and that "Defendants do not have an interest in the purported copyright." Compl. ¶¶ 15-17. If the Court were to issue such declarations, the Court's order would have no practical effect if a valid copyright does not yet, in fact, exist. In short, Plaintiff's declaratory judgment claim is premature and if entered, possibly practically unenforceable.
Accordingly, the Court
The Court hereby