JEFFREY COLE, Magistrate Judge.
Mr. Fryer has moved for an award of attorney's fees under §505 of the Copyright Act, totaling $57,365 for work done on the appeal of this case ($45,745) and in pursuit of fees ($11,620), and expenses in the amount of $643.53. [See Dkt. ##91, 93, 94]. In his companion motion, he is seeking an additional $133,817.30 in restitution. [Dkt. #96]. To fully understand this case, its history must be reviewed. It is compendiously summarized in Alliance for Water Efficiency v. Fryer, 808 F.3d 1153 (7
The Alliance had hired Mr. Fryer, an environmental scientist, to research and write a report on the extent to which water demand elasticity during future droughts would be affected by urban water agencies' conservation programs. The Alliance organized the financing for the study through several sponsors, as well as providing the largest funding contribution itself. When Mr. Fryer submitted his draft report, the Alliance was dissatisfied, as were most of the sponsors — according to the Alliance's complaint. The exception was the California Department of Water Resources ("CDW"). The Alliance wanted the report refocused, while Mr. Fryer did not, and the dispute made its way to federal court in the form of the Alliance's four-count Complaint, which sought relief under the Declaratory Judgment Act and charged Breach of Contract, Unjust Enrichment/Restitution, and Copyright Infringement. [Dkt. #1].
The Alliance claimed that it had all legal and tangible rights to the study and the report, including an ownership interest in the files and documents relating to the study. In Count IV, the Alliance alleged that Mr. Fryer's report was a "work made for hire," and that the Alliance owned the copyright to it.
Thereafter, on January 17, 2014, the plaintiff filed an Amended Complaint alleging diversity jurisdiction in a manner that it was thought would satisfy Judge Shadur's diversity concerns. It was and again charged that the report was "a work for hire" under the Copyright Act. [Dkt. #5]. On February 14, 2014, Mr. Fryer's counsel filed a motion to dismiss in which he charged that there was no diversity jurisdiction and that there was no subject matter jurisdiction under Count IV. [Dkt. ##7, 8]. Mr. Fryer argued that the Amended Complaint failed to properly allege that the report had been a "work made for hire" because it stated Mr. Fryer was an independent contractor rather than an employee and failed to allege that the parties had a written agreement designating the report as a work made for hire. [Dkt. #8, at 10, 12].
Before the motion to dismiss was responded to by the plaintiff or ruled on by Judge Shadur, the parties asked him to refer the matter for a settlement conference. He did so on February 21, 2014. [Dkt. #16]. When the parties were again before Judge Shadur on February 26, 2014, he denied that portion of Mr. Fryer's motion to dismiss for lack of personal jurisdiction, and he entered and continued the portion of the motion that had argued that the court lacked jurisdiction under the Copyright Act. [Dkt. #20]. The parties were before me on February 28, 2014, asking that I set a settlement conference. [Dkt. #21]. The settlement conference proceeded less than two weeks later on March 13, 2014. On that day, the parties reached a settlement, and their lawyers stated the material terms on the record. It was agreed that contract formation had occurred that day, that there was a binding settlement agreement, and that the ultimate execution of the contemplated written agreement was not a precondition to contract formation. [Dkt. #26 See also Dkt. #48]. Under their agreement, if the parties could not agree on a written document, what was read into the record on the 13th would serve as the settlement agreement. That same day, the parties also consented in writing to my jurisdiction. [Dkt. #25].
When the Alliance put its version of the agreement in writing, however, Mr. Fryer refused to sign, although he admittedly agreed with many of its provisions. The same was true of the Alliance. The Alliance's stance was that Mr. Fryer had agreed on the 13th that he couldn't name certain organizations without their prior permission as it would falsely suggest that his separate report (for himself and CDW) had the Alliance's imprimatur, when it did not. Alliance for Water Efficiency, 808 F.3d at 1157. Mr. Fryer's position was that under the settlement on the 13th he had not agreed to exclude the funders (other than the Alliance), and it was his prerogative to credit those who had provided funding and data. An exchange of drafts and counterdrafts followed, but "complete written agreement was never reached . . . [leaving] the March 13 exchange as the definitive settlement." Alliance for Water Efficiency v. Fryer, 808 F.3d at 1155.
The Alliance filed a motion to enforce its version of the settlement agreement, which was, in effect, a request for a mandatory injunction. Resolution Trust Corp. v. Ruggiero, 994 F.2d 1221, 1225 (7
On October 27, 2014, following a telephone conference with the parties, it was agreed that nothing in the March 13
On January 7, 2015, form AO 450, captioned Judgment In A Civil Action, was filed with the clerk of court dismissing the case. [Dkt. #62]. Mr. Fryer appealed. [Dkt.#63].
At oral argument, the Seventh Circuit pointed out that although injunctive relief was contemplated, there was no document that complied with Fed.R.Civ.P. 65(d)(1). The parties then returned here and obtained a self-contained order that complied with the Court's concerns and Rule 65. Alliance for Water Efficiency, 808 F.3d at 1155. [See Dkt.#85]. The parties then returned to the Court of Appeals, which determined that Mr. Fryer and the Alliance had not come to a mutual accord on a final written agreement, and therefore that what was read into the record by them on March 13, 2014, was the operative settlement agreement — as the parties had agreed. Alliance for Water Efficiency, 808 F.3d at 1157. The Seventh Circuit vacated the injunction "because it contains terms on which the parties have not agreed." Id.
Prior to its discussion on the scope of the March 13 settlement agreement, the Seventh Circuit addressed the question of jurisdiction, saying: "Fryer contends that this injunction creates a prior restraint that violates the First Amendment. Before we tackle that subject, however, we must decide whether the suit is properly in federal court." Alliance for Water Efficiency, 808 F.3d at 1156. If there had been no independent jurisdictional basis for AWE's suit, dismissal, the Seventh Circuit said, rather than adjudication of the appeal would have been the appropriate action. Cf. Blue Cross Blue Shield v. American Express, 467 F.3d 634 (7
Why the parties decided to settle, and why they settled under the terms they did on March 13 is unknown. The Seventh Circuit did not even hazard a guess. It merely noticed that settlements involve "compromise" in which no one gets all of what it wants. Alliance for Water Efficiency, 808 F.3d at 1157. Since Judge Shadur had deferred the Alliance's response to and his consideration of the Fryer motion to dismiss Count IV for failure to state a claim, the Alliance had not responded to it. The case was in the earliest stages of the pleadings, and no discovery had been taken. Thus, nothing supports Mr. Fryer's tendentious speculation that the Alliance settled because it knew it ultimately was going to lose on the merits of its suit. It is as likely that Mr. Fryer settled because he feared what the evidence would reveal as it is that the Alliance settled out of fear of defeat or exposure that its suit was frivolous. All that can be said with certainty is, as the Court of Appeals pointed out, "instead of defending, Fryer struck a bargain with the Alliance." 808 F.3d at 1157.
If we assume that one purpose of the fee-shifting provision in §505, like that in other fee shifting statutes, is "to deter the bringing of lawsuits without foundation" and that like them, §505 should be interpreted as allowing fees whenever the plaintiff's "claim was frivolous, unreasonable, or groundless," CRST Van Expedited, Inc., 136 S.Ct. 1642, 1652, it cannot be said on this record that Mr. Fryer is a prevailing party within the meaning of the Copyright Act. He won in the Court of Appeals on the construction to be given to a settlement agreement, not on an issue that advanced the Act's goals or because there was any decision or evidence that Count IV would ultimately be found frivolous or groundless.
The Court of Appeals' concern with how Count IV was pled was jurisdictional, for absent jurisdiction the case would have to be dismissed. Jurisdiction is a matter to be taken quite seriously. See e.g., Tisza v. Communications Workers of America, 953 F.2d 298, 300 (7
After determining that there was jurisdiction because diversity had been sufficiently pled, the Court of Appeals turned to the "merits," on which it promised brevity. The Court vacated the injunction "because it contains terms on which the parties have not agreed." 808 at 1157. The "injunction [went] beyond what the parties agreed [to] on March 13, 2014. It takes the Alliance's later drafts as if they were a signed contract, which they aren't. On March 13 Fryer promised to remove the Alliance's name from his report. He did not promise to omit the sponsors' names." 808 F.3d at 1157.
Mr. Fryer now insists that the ability to name all the funders in his separate report without their prior permission was the salient event in the case. [Dkt. #105, at 4].
Section 505 of the Copyright Act provides that:
17 U.S.C. § 505 (emphasis supplied). Importantly, for our purposes, under the plain language of §505, a party — plaintiff or defendant — must be the "prevailing party" in a "civil action under [the Copyright Act]" before a court is obligated to exercise its discretion and decide whether to award fees. The Supreme Court appears to have read §505 as only being applicable in a "copyright infringement action" and only to a prevailing party in such an action. Fogerty v. Fantasy, Inc., 510 U.S. 517, 519 (1994). Congress has included the term "prevailing party" in various fee-shifting statutes, and the Court in another context has said that its approach has been to interpret the term in a consistent manner. CRST Van Expedited, Inc. v. E.E.O.C., 578 U.S. ___, 136 S.Ct. 1642, 1646 (2016).
Courts cannot ignore "the text of the fee shifting statute" under consideration, any more than they can ignore in other contexts the words chosen by Congress. See CRST, 136 S.Ct. at 1653. Compare Simmons v. Himmelreich, ___ U.S. ___, 136 S.Ct. 1843, 1850 (2016) (courts can't ignore the text of the statute ); Octane Fitness, LLC v. ICON Health & Fitness, Inc., ___ U.S. ___, 134 S.Ct. 1749, 1755 (2014) ("Our analysis begins and ends with the text of [the patent act]."); United States v. Natale, 719 F.3d 719, 734 (7
The Seventh Circuit has explained that:
Klinger v. Conan Doyle Estate, Ltd., 761 F.3d 789, 791 (7
At the other extreme are cases where the claim or defense was frivolous, and the prevailing party obtained no relief at all. Then, the case for awarding attorneys' fees is compelling. Id. at 789. A presumption in favor of a fee award to a successful defendant ensures that in a copyright infringement case, the defendant does not abandon a meritorious defense in situations in which "the cost of vindication exceeds the private benefit to the party." Assessment Technologies of WI, LLC v. WireData, Inc., 361 F.3d 434, 437 (7
Mr. Fryer's fee petition is limited to work done in the appeal before the Seventh Circuit — a Court of Appeals often determines the fee worthiness of work done before it
A settlement agreement, whether oral or written, is a contract, and its construction and enforcement are governed by basic contract principles under applicable state law, as the Court of Appeals made clear in this case. See also Jones v. Ass'n of Flight Attendants CWA, 778 F.3d 571, 573 (7
Federal courts lack "inherent" power to enforce settlements of federal litigation. Since enforcement of a settlement agreement is more than just a continuation or renewal of the dismissed suit, a motion to enforce a settlement agreement requires its own basis of jurisdiction. Alliance supra; Lucille v. City of Chicago, 31 F.3d 546, 548 (7
No one disputes that at the time of the March 13
The Court did not focus on "[e]nforcing the benefits of a settlement that resolved Copyright issues" in the sense that Mr. Fryer subtly uses the word. (Emphasis supplied). In view of Mr. Fryer's syntax, it is important to remember that "[u]nlike Humpty Dumpty . . . a litigant cannot use words any way [he] pleases.. . . Abraham Lincoln once was asked how many legs a donkey has if you call its tail a leg. His answer was four: calling a tail a leg does not make it one." Blue Cross Blue Shield of Massachusetts, Inc. v. BCS Ins. Co., 671 F.3d 635, 637 (7
Even a consent judgment reflects the compromise of the parties' inevitably clashing and divergent interests, and so it cannot be construed as though it were a reflection of the maximum aspirations of one side or a reflection of what might have been achieved had the particular issues solved by the consent order been played out to their ultimate conclusion. See, United States v. Armour & Co., 402 U.S. 673, 682 (1971); White v. Roughton, 689 F.2d 118, 119-20 (7
Under §505, the question is whether, when the parties were before the Seventh Circuit, arguing about the terms of their settlement agreement, Mr. Fryer prevailed not on a contract construction matter, but on an action under the Copyright Act. It must be said that he did not. Accordingly, his motion for an award of attorney's fees under 17 U.S.C. §505 should be denied.
When the case was still before the district court it included a Copyright Act claim as one of four counts. But, the entire case was settled with the March 13
If the Court of Appeals had held that Mr. Fryer had agreed not to use the PAC members' names without their permission, the Copyright Act claim would not have been resurrected. Nor would the Copyright Act have been violated or even involved. It simply would have been a compromise that he and the Alliance made. The appeal, it must be repeated, was about the terms of the settlement agreement — what the parties had agreed to, and thus whether the injunction accurately reflected that agreement. "Fryer is therefore under no obligations beyond those undertaken in the settlement agreement." Alliance for Water Efficiency, 808 F.3d at 1157.
If there were Copyright Act issues at stake, surely Mr. Fryer would have argued that in his appellate brief. He did not. Indeed, the entire, lengthy Argument section of his brief does not contain any argument about copyright. (See Appellant's Brief and Appendix, at 23-51). His arguments on appeal were focused on and limited to First Amendment prior restraint and contract interpretation issues. Mr. Fryer did not ask the Court of Appeals for an award of fees under the Copyright Act, see Jannotta v. Subway Sandwich Shops, Inc., 225 F.3d 815, 819-20 (7
The Seventh Circuit devoted a few sentences to the prior restraint issue under the First Amendment, ultimately declining to rule on the issue "unnecessarily," and confined itself to contract interpretation: what did the parties agree to do — or not do — in their March 13
Mr. Fryer's mention of the Copyright Act in the Court of Appeals came in his jurisdictional statement, when he argued that there could be no federal jurisdiction based on the Alliance's Copyright Act claim because the claim (as initially pled) could not support federal jurisdiction. (Appellant's Brief and Appendix, at 1-3). The Alliance had, it should be noted, pled conclusorily that Mr. Fryer's report was a work for hire. While a frivolous federal law suit cannot be the basis for federal jurisdiction, Thornton v. M7 Aerospace LP, 796 F.3d 757, 765 (7
The Seventh Circuit did not call the Alliance's claim in Count IV "frivolous;" indeed that word does not appear anywhere in the Court of Appeals Opinion. It said that as pled (and it must be remembered that the case was in its infancy, and the Alliance had not been asked or given the chance to replead Count IV), the Count could not support federal question jurisdiction.
Mr. Fryer calls the Seventh Circuit's brief reference to the pleading of Count IV an "alternative ruling to its conclusion that there was diversity jurisdiction." [Dkt. #94-2, at 11]. It was no such thing, and that reading of the Opinion precludes a valid comparison with the very complicated opinion in Magnus Electronics, Inc. v. La Republica Argentina, 830 F.2d 1396 (7
As the Court of Appeals noted here, an action to enforce a settlement agreement — which was what the case was — is "independently within federal jurisdiction, even if the original suit would have failed on the merits or should have been dismissed." Alliance for Water Efficiency, 808 F.3d at 1157. In any event, the amount of time and effort expended by Mr. Fryer's counsel on this pleading/jurisdictional issue, even if compensable, does not and could not even begin to approach the large amount of fees he is seeking under §505. That conduct is a factor to be taken into consideration in exercising discretion.
Jurisdiction, then, was found in the diversity of citizenship between Mr. Fryer and the Alliance on a motion to enforce a settlement agreement that was independent of a Copyright Act claim that the Alliance alleged but once — inadequately — in the district court. In the end, the brief passage regarding jurisdiction based on the vanished Copyright Act claim turned out not to be necessary to the Seventh Circuit's jurisdictional decision allowing the case to proceed. And Mr. Fryer's reliance on that passage to demonstrate that he prevailed in the Seventh Circuit on a Copyright Act claim is misplaced.
Even further off base is Mr. Fryer's reliance on the Seventh Circuit's passage requiring any future breaches of the settlement agreement to be brought where the parties specified in their agreement of the 13
As the Court of Appeals held, a suit to enforce a settlement agreement is a contract claim applicable under state law. See supra at 6; Kokkonen v. Guardian Life Ins. Co. of America, 511 U.S. 375, 381-82 (1994); Jones v. Assn. of Flight Attendants-CWA, 778 F.3d at 573; Laserage Tech. Corp. v. Laserage Laboratories Inc., 972 F.2d 799, 802 (7
Id. at 637. Again, the brief passage on how Count IV was initially pled reflected jurisdictional concerns that ultimately proved unnecessary to the Seventh Circuit's holdings about the scope of the settlement agreement. Diversity jurisdiction was found to have been properly pled, and that was enough to enable the Court of Appeals to entertain the case. The Court dealt with — and the parties argued about — contract issues, not substantive Copyright Act issues. In other words, Mr. Fryer prevailed in the Seventh Circuit not because of the Copyright Act or any of the goals it seeks to achieve, but because the Court of Appeals found that the lower court had, as a matter of contract interpretation, improperly concluded that the parties had agreed to something they had not.
Mr. Fryer claims that for him the option to name the funders of the study was perhaps the most important part of his report. [Dkt. #94-2, at 3, 9; Dkt. #105, at 4, 9]. But, Mr. Fryer's "saying so does not make it so. . . ." Allen v. GreatBanc Trust Co., 835 F.3d 670, 679 (7
Mr. Fryer doesn't get too deeply into how this amounts to a Copyright Act issue. He merely says the list of funders is "expressive content." [Dkt. #94-2, at 3]. But under his formulation, so too is everything, including the name of the Alliance. But neither Mr. Fryer nor the Alliance has any copyright on the names of the funders. The Act protects only the form of an author's expression, not the facts or ideas being expressed. Harper & Row Publishers, Inc. v. Nation Enterprises, 471 U.S. 539, 556 (1985); Hobbs v. John, 722 F.3d 1089, 1094-95 (7
Thus, it is hardly surprising that the Seventh Circuit did not hold that the Copyright Act precluded an agreement that Mr. Fryer refrain from naming the funders/PAC members without their prior permission; nor did Mr. Fryer argue this. On the contrary, the Seventh Circuit vacated the injunction not because of the Act, but "because it contains terms on which the parties have not agreed." 808 F.3d at 1157. It was a matter of agreement, not a matter of what the Copyright Act allowed or protected or required.
Some of the discussion from ProCD, Inc. v. Zeidenberg, 86 F.3d 1447 (7
Id. at 1454. Under their agreement of March 13
Between themselves, Mr. Fryer and the Alliance could agree who Mr. Fryer could not mention and who the Alliance could, and vice versa. And they did.
We come then to the matter of discretion. Under §505, the section on which Mr. Fryer's motion is based [Dkt. #91, 94], the decision whether to award fees is left to the court's discretion, which is broad. Kirtsaeng, 136 S. Ct. at 1988. "[D]iscretion denotes the absence of a hard and fast rule." Langnes v. Green, 282 U.S. 531, 541 (1931). Being a range, not a point, discretion allows two decision-makers, on virtually identical facts, to arrive at opposite conclusions, both of which constitute appropriate exercises of discretion. See Mejia v. Cook County, Ill., 650 F.3d 631, 635 (7
This is not to say that a court can act as it pleases, and that there are no criteria to guide an exercise of discretion. There are — in Copyright Act cases, no less than in others. See Kirtsaeng, 136 S.Ct. at 1985; Fogerty, supra; Bell v. Lantz, 825 F.3d 849, 850 (7
While there is wide latitude to award attorney's fees, results should be based on "`the larger objectives of the relevant Act.'" Kirtsaeng, 136 S.Ct. at 1986. That is, "courts must view all the circumstances of a case on their own terms, in light of the Copyright Act's essential goals. Id. at 1986, 1989. See also Palladium Music, Inc., v. EatSleepMusic, Inc., 398 F.3d 1193, 1198 (10
Assuming this were an action under the Copyright Act within the meaning of §505, Mr. Fryer's attempt to avoid the American rule that each side bears its own fees in the absence of a contrary statute, Bell, 825 F.3d at 852, and for this court to exercise its discretion and award him $57,365 in fees for work done on the appeal of this case [($45,745), in pursuit of fees ($11,620), and expenses in the amount of $643.53. [Dkt. #91, 94]] is inappropriate and unreasonable. The facts are significant and warrant repeating: the proceedings before Judge Shadur ended quickly, largely without input from the Alliance. There was no discovery, and the case was settled almost immediately, without any copyright issues being decided. The settlement conference before me on March 13
All that can be said with certainty is, as the Court of Appeals pointed out, "instead of defending, Fryer struck a bargain with the Alliance." 808 F.3d at 1157. The question was how far had the parties gone in their agreement. The Court of Appeals rejected the Alliance's interpretation and found that Mr. Fryer had the better of the contract argument. But the scope of the parties' settlement agreement was not an issue under the Copyright Act; it was a contractual issue between the parties. Viewed properly, the Opinion corrected a misinterpretation of the parties' settlement agreement of March 13
The cases Mr. Fryer relies upon to support his request for an award of attorney's fees under §505 do not advance his position. In Vukadinovich v. McCarthy, 59 F.3d 58 (7
Similarly perplexing is Mr. Fryer's reliance on Balark v. Curtin, 655 F.2d 798 (7
In Estate of Cencula v. John Alden Life Ins. Co., 174 F.Supp.2d 794 (N.D. Ill. 2001), the plaintiff succeeded on a summary judgment motion in his ERISA case, and the court entered a judgment finding the defendant liable for the plaintiff's unpaid medical bills. Id. at 796. The parties then entered into a settlement agreement that had defendant paying plaintiff's medical bills, insurance premiums, prescription expenses, and attorney's fees. But, the defendant ended up dragging its feet on most, if not all, of its obligations under the agreement, and plaintiff had to return to court to enforce the settlement agreement. Id. at 796-97. The court intervened — to a degree — and the defendant finally came through with some very tardy payments. The court also awarded the plaintiff the attorney's fees he incurred in forcing the defendant to fulfill the obligations it had agreed to. 174 F.Supp.2d at 801-02. In that sense, the case is not any different than Balark v. Curtin.
The difference between Cencula and the instant case is rather clear, and serves to underscore the points made thus far. When the parties settled in Cencula, the court had found the defendant liable on the plaintiff's ERISA claim. The subsequent settlement was limited to the damages the defendant would pay and when it would pay them. Plaintiff's efforts to enforce that settlement were efforts to enforce a previous ERISA judgment. 174 F.Supp.2d at 801. The same is not true of Mr. Fryer's efforts before the Court of Appeals. The parties' March 13
That the Opinion initially spoke of jurisdiction was because jurisdiction is the first issue in every case. See cases supra at 7. Once the Count charging "work for hire" was disposed of — and it was disposed of in a paragraph, 808 F.3d at 1156 — the Court of Appeals satisfied itself that diversity jurisdiction existed and that given diversity of citizenship and the amount in controversy, an action to enforce the settlement contract is independently within federal jurisdiction. 808 F.3d at 1156. Certain the case could proceed jurisdictionally, the Court of Appeals turned to "the merits," 808 F.3d 1157, which were solely about what the parties had agreed to in their settlement agreement of March 13 — a settlement that, it bears repeating, had witnessed no discovery, no judgment in favor of anyone, no request by Judge Shadur or opportunity for the Alliance to replead Count IV, and which came within weeks of the lawsuit against Mr. Fryer as the Seventh Circuit said "instead of defending, however, Fryer struck a bargain" with the Alliance. 808 F.3d at 1157.
With all deference, Mr. Fryer misapprehends the thrust of Liberty Media Holdings, LLC v. FF Magnat Ltd., 2012 WL 3834744 (D.Nev. 2012). That case does not articulate the proposition that a party in every case that began with a multi-count complaint, one count of which was brought under the Copyright Act, is entitled to attorney's fees if his construction of a subsequent settlement agreement is sustained by the Court of Appeals. Nor does it pretend to. As in all cases, the factual setting is critical. See Upjohn Co. v. United States, 449 U.S. 383, 390-91 (1981); Sandra T.E. v. South Berwyn School Dist., 600 F.3d 612, 619 (7
The case began as a Copyright Act case and essentially remained one through a settlement agreement and attempts to enforce that settlement. Defendant agreed to pay $550,000 to the Plaintiff, and promised that it would "take both strong and bold measures to keep Liberty Media content off of its servers," that it would "assist Liberty in identification and civil prosecution of any parties who have been using Oron to distribute Liberty's copyrighted material," and that plaintiff would have "unfettered access to takedown/delete any of Liberty's material that are being distributed through Oron.com." 2012 WL 3834744, at *1.
Through the settlement agreement, the plaintiff was distinctly advantaged and in a far better position than before the suit was filed. When the defendant balked at doing what he had promised and what was required by the Act, the plaintiff was required necessarily to continue preparing its brief in support of its motion for preliminary injunction in accordance with the extended briefing schedule. 2012 WL 3834744, at *1. The district court held that the defendant had broken its promise in all particulars, and, in addition, even went so far as to dispute that it had ever made the promises attributed to it in the settlement agreement. The plaintiff brought a motion to enforce the agreement, which the district court granted. 2012 WL 3834744, *1.
A discretionary award of fees under §505 was sought by the plaintiff and was deemed appropriate by the district court because, although the court had to address the issue of the scope of the agreement in light of the defendant's claim that it had not agreed to what was attributed to it, the end result required the plaintiff to continue work on his motion for preliminary injunction to enforce the terms of the Copyright Act. The agreement, which had been frustrated by the defendant's illicit and obstructive conduct, embodied the resolution in the plaintiff's favor of his Copyright Act claims. The work that was required to correct the defendant's faithless behavior was not only contrary to the settlement agreement, but plainly furthered the goals of the Copyright Act and the plaintiff's acknowledged rights under it. 2012 WL 3834744, at *4.
Copyright Act issues were not even mentioned in the arguments before the Seventh Circuit. As we have said, there was no risk that, if Mr. Fryer lost on appeal, the Alliance's Copyright claim would have sprung back to life or otherwise left Mr. Fryer and the Alliance at risk under the Act. Either the Alliance had the better of the interpretation of the agreement or Mr. Fryer did. That was the question confronting the Court of Appeals. And finally, unlike the situation in Liberty Media Holdings, LLC, neither side was advancing any substantive copyright analysis in arguing about the scope of the settlement agreement that would affect the Act or its goals, regardless of the outcome of the case in the Court of Appeals. The Court of Appeals Opinion in this case merely held the parties to a private bargain they made at the settlement conference on March 13
Mr. Fryer takes too much to heart the statement in the non-copyright case of United States v. Parker, 120 U.S. 89, 95 (1887) that "a retraxit is an open, voluntary renunciation of his claim in court, and by this he forever loses his action." [Dkt. #94-2, at 6]. Apart from the fact that "general propositions do not decide concrete cases," Lochner v. New York, 198 U.S. 45, 76 (1905) (Holmes, J., dissenting); see also Barnhart v. Thomas, 540 U.S. 20, 29 (2003), the applicability of any "pronunciamento," taken out of context, Wisehart v. Davis, 408 F.3d 321, 326 (7
It bears repeating that the parties were at odds here and in the Court of Appeals over what the terms of the settlement agreement were. The Seventh Circuit held that Mr. Fryer and the Alliance had agreed that the Fryer report would not name the Alliance, and vice versa. There was only its brief statement that Count IV (as pled and which Judge Shadur had not given the Alliance the opportunity to replead) could not provide federal jurisdiction. But, concluded the Court of Appeals, diversity jurisdiction provided the necessary fulcrum for the case to proceed. The Court looked to the parties' settlement of March 13
Mr. Fryer's motion for fees [Dkt. #94] is denied.
Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 547 (2007) held that while heightened fact pleading of specifics it is not required, there must be enough facts to state a claim to relief that is plausible on its face. The difficulty is that the Alliance never was asked its views about the adequacy of the way it pled Count IV or was told or allowed to replead Count IV. Instead, the parties asked for a settlement conference, and they were immediately accommodated.