| Sirico v F.G.G. Prods., Inc. |
| 2010 NY Slip Op 01733 [71 AD3d 429] |
| March 4, 2010 |
| Appellate Division, First Department |
| Phyllis J. Sirico et al., Appellants, v F.G.G. Productions,Inc., Respondent. |
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Order, Supreme Court, New York County (Eileen Bransten, J.), entered August 22, 2008,which, to the extent appealable, denied plaintiffs' motion to renew a prior order grantingdefendant partial summary judgment, unanimously reversed, on the law, without costs, and themotion granted. Order, same court (Karla Moskowitz, J.), entered January 4, 2008, which, to theextent appealed from, granted defendant's motion for summary dismissal of the complaint,unanimously modified, on the law, without costs, the motion denied with respect to the first andsixth causes of action, those claims reinstated, and otherwise affirmed.
This action concerns music recordings from the 1960s featuring performances by the vocalgroup known as the Angels, including their well-known 1963 recording, "My Boyfriend's Back,"which over the years has sold more than a million units in various formats. Defendant (FGG)produced the recordings. Plaintiffs commenced this action in 2005, alleging in the verifiedcomplaint and bill of particulars that in or about 1960, FGG entered into a written recordingcontract with the Angels, then composed of plaintiff Phyllis Allbut, suing here as Phyllis Sirico,her sister Barbara Allbut, and lead singer Linda Jansen.[FN1]In exchange for Sirico's performances on recordings that FGG produced and owned, plaintiffsallege that FGG agreed to pay her artist's royalties for sales of phonograph records and otherproducts containing the recordings, and a share of FGG's income from licensing the use of therecordings by third parties. Plaintiffs state that they do not have a copy of the contract and do notknow the specific method for calculating royalties.
In 1962, plaintiffs further allege, Jansen left the group, and plaintiff Peggy Davison, suinghere as Peggy Davidson, replaced her as lead singer. Plaintiffs allege that Davidson neverentered into a written or oral contract with FGG, but FGG's representatives told her she would bepaid royalties, and provided her with a contract to that effect which was never executed.
Starting in 1963, plaintiffs performed for FGG as members of the Angels on "MyBoyfriend's Back" and several other recordings. Their central allegation is that FGG has not paidthem their full share of royalties and licensing income over the past 40-odd years. Davidson[*2]also claims that FGG exploited her image, voice and name tomarket the recordings without her consent.
The verified complaint purports to state the following causes of action: by Sirico, for breachof written contract; by Davidson, for breach of "implied contract"; and by Sirico and Davidson,for the equitable claims of unjust enrichment, an accounting, and, in the alternative, rescission.Finally, Davidson asserts a claim of violation of Civil Rights Law § 51. Defendant'sanswer counterclaimed against Sirico for costs arising from Davidson's claims, on the groundthat Davidson performed at Sirico's behest.
Before discovery commenced, defendant moved for summary judgment dismissing thecomplaint and on its counterclaim. Defendant's principal, Richard Gottehrer, provided anaffidavit that disputes most of plaintiffs' factual allegations. Gottehrer states that he formed FGGwith his partners, Gerald Goldstein and Robert Feldman, in 1963, while they were working asstaff songwriters for a music publisher. As aspiring record producers, the songwriters would, attheir own expense, produce recordings of their songs performed by artists they had engaged,with the aim of selling the rights in the recordings to established record labels.
After composing "My Boyfriend's Back," Gottehrer and his partners asked the Angels torecord it. According to Gottehrer, " 'The Angels' were the Allbut sisters [Sirico and her sisterBarbara], who might be joined by such other vocalists as they engaged." Gottehrer alleges thatby 1961, the Allbuts were performing and recording as the Angels along with Linda Jansen, whothey described as their "employee," and who was in 1962 replaced by Davidson.
Gottehrer further alleges that when "My Boyfriend's Back" was recorded in 1963, theAllbuts were already parties to a March 1963 recording contract with a production companycalled Sabina Records, and a separate personal management contract with one GeraldGranahan.[FN2]Under the recording contract, the Allbuts had agreed to record exclusively for Sabina for atwo-year term ending March 23, 1965, and in exchange for their performances they wouldreceive specified royalties based on record sales, to be paid semiannually. Gottehrer states thatthe partners did not learn of the Sabina contracts until after they had recorded "My Boyfriend'sBack" "on spec" and found a record label, Smash Records, which wanted to buy the rights to therecording.
At that point, Gottehrer continues, FGG "bought out" the Allbuts from the Sabina contractand from their management contract. Gottehrer denies that FGG ever entered into a recordingagreement with Davidson or purchased any agreement to which she was a party.
Gottehrer states that FGG had rendered royalty statements to the Allbuts until 1964, whenthey flatly refused to record any more for FGG In or about January 1965, Gottehrer claims,FGG's attorney notified the Allbuts' attorney that it was suspending the recording contract.Gottehrer also alleges that by late 1964, the Allbuts and Davidson were recording for anotherlabel under a different name, and later signed a recording contract as the Angels with stillanother label. He contends that their actions breached the exclusivity provision of theiragreement and forfeited their rights to royalties for the FGG recordings.
As documentary evidence on the summary judgment motion, defendant submitted anincomplete and partially illegible copy of the Allbuts' contract with Sabina Records. It also [*3]submitted a letter, dated April 10, 1963, by which the Allbutsconsented to the assignment to FGG of the Sabina Records contract and the personalmanagement contract. The letter indicates that the Allbuts agreed that payment of $2,000 toSabina and $1,000 to Sabina's owner would be deducted from the first royalties payable to themas FGG artists. Finally, defendant submitted biographies about, discographies of, and interviewswith the Angels, which were obtained from various internet Web sites.
In opposition to the motion for summary judgment, plaintiffs submitted only their counsel'saffirmation and a memorandum of law. In the January 2008 order, Supreme Court granteddefendant's motion and dismissed the complaint, finding defendant had made a prima facieshowing that it was entitled to judgment to which plaintiffs had offered virtually no opposition,since neither the affirmation nor the memorandum of law had any evidentiary value. The courtalso denied summary judgment to defendant on its counterclaim against Sirico, severed it, anddirected that it continue.
In May 2008, plaintiffs moved for renewal and reargument,[FN3]contending that the allegations in Gottehrer's affidavit were conclusory and unsupported by anyproof, and noting that defendant had moved for summary judgment before plaintiffs had theopportunity to conduct discovery. For those reasons, plaintiffs argued, they believed their factualallegations in the complaint and bill of particulars should have withstood the motion forsummary dismissal.
In connection with their motion to renew, plaintiffs submitted "affidavits" witnessed byout-of-state notaries that were questionable as to proper form. Davidson states that sheunderstood from representations by FGG's owners, including Gottehrer, that FGG would pay herthe same royalties as the Allbuts for recording as a member of the Angels. According toDavidson, FGG had made one "negligible" royalty payment to each of the three women.Davidson adds that she never signed any agreement when joining the group and never signedany waiver or release of any of her rights, and claims that FGG used her voice, name and imageto sell records. Davidson denied that the Angels ever refused to record for FGG
In a similar affidavit, Sirico states that all three women believed that as a member of theAngels, Davidson was entitled to FGG's royalties, and in fact FGG gave each of the women oneroyalty check. She denies having breached her contract by refusing to perform for FGG, andstates that she recorded for another label only after the exclusivity period of the contract hadexpired.
Defendant opposed plaintiffs' motion and cross-moved for sanctions, contending thatrenewal should be denied because plaintiffs' affidavits did not contain any newly discoveredevidence that could not have been submitted previously. Defendant also claimed that theaffidavits were improper because the out-of-state notaries' acknowledgments did not state thatplaintiffs' statements were sworn to in their presence.
The court held that the motion for reargument was untimely, and plaintiffs' affidavits insupport of the renewal were deficient because they were unsworn, but in any event wereinsufficient to defeat defendant's prima facie showing. It noted that Davidson did not provide anydetails about the terms of her alleged contract with FGG, and held that plaintiffs had not justifiedtheir failure to submit admissible evidence to oppose the summary judgment motion, concludingthat[*4] "[o]n this record—riddled with proceduralmistakes and deficiencies—there is no reason for the Court to exercise its discretion andoverlook plaintiffs' repeated oversights."
There is, of course, no appeal from denial of reargument. However, the denial of renewal isreversed. "Although renewal motions generally should be based on newly discovered facts thatcould not be offered on the prior motion (see CPLR 2221 [e]), courts have discretion torelax this requirement and to grant such a motion in the interest of justice" (Mejia vNanni, 307 AD2d 870, 871 [2003]). While plaintiffs should have submitted admissibleevidence to oppose the summary judgment motion, their failure is excusable. Defendant movedfor summary judgment before plaintiffs had the opportunity to conduct discovery, and plaintiffs'counsel reasonably believed that defendant had failed to make a prima facie showing ofentitlement to judgment.
FGG's claims that the Allbuts breached their contract are, at this stage, conclusory (see JMD Holding Corp. v Congress Fin.Corp., 4 NY3d 373, 384-385 [2005] [a conclusory affidavit does not establish the primafacie burden of a proponent for summary judgment]). Gottehrer's claim that the Allbuts breachedthe exclusivity provision before March 25, 1965, which is the only circumstance under whichthey would have forfeited royalties, is based in part on hearsay.
Contrary to the renewal court's ruling, plaintiffs' affidavits are admissible. Each contains theaffiant's statement that she was duly sworn and believes the affidavit's contents to be true andcorrect, and the notary's statement that the affiant personally appeared, proved her identity, and"did further acknowledge that she executed the foregoing for the purposes therein contained"(see Feldman v Feldman, 280 AD2d 276, 277 [2001]; Collins v AA Truck RentingCorp., 209 AD2d 363 [1994] [notary "is presumed to have acted within his or herjurisdiction and carried out his or her duties as required by law"]).
Having granted leave to renew, we turn to the merits of the summary judgment motion. As athreshold matter, we find that plaintiffs' claims are not automatically barred by laches. Whiledefendant contended it was prejudiced by plaintiffs' delay, it has not yet shown that the delayhampered its ability to defend against their claims (see Commissioners of the State Ins. Fund v Ramos, 63 AD3d 453[2009]; see also Continental Cas. Co. vEmployers Ins. Co. of Wausau, 60 AD3d 128, 137-138 [2008]).
Except for Sirico's claim for breach of contract and Davidson's claim for violation of theCivil Rights Law, all of the claims were properly dismissed on the grounds that they weretime-barred, violated the statute of frauds, or failed to state a cause of action. Davidson's allegedimplied contract for royalties would be unenforceable since any agreement to pay royaltiesextending beyond one year must be in writing to satisfy the statute of frauds (see Melwani vJain, 281 AD2d 276 [2001]). Plaintiffs' unjust enrichment claims are time-barred by thesix-year statute of limitations (see CPLR 213 [1]) because they accrued in the 1960s,when plaintiffs made the recordings for which they seek compensation (see Petracca vPetracca, 305 AD2d 566, 567 [2003]). Plaintiffs lack the requisite fiduciary relationship withFGG that is a predicate to an equitable claim for an accounting (see Brigham v McCabe,27 AD2d 100, 105 [1966], affd 20 NY2d 525 [1967]), although Sirico may be entitled toobtain accounting or royalty information through discovery. Finally, the equitable claim forrescission fails because plaintiffs have a complete and adequate remedy at law (see Rudmanv Cowles Communications, 30 NY2d 1, 13 [1972]).[*5]
However, plaintiffs' affidavits, when read together withthe complaint and bill of particulars, raise questions of fact as to whether FGG breached Sirico'scontractual rights to royalties and violated Davidson's statutory protection against invasion ofprivacy. While the statute of limitations bars much of Sirico's breach-of-contract cause of action,her claim for royalties, if any, earned during the six years before this action was commenced, isviable at this preliminary stage, as it accrued each time FGG allegedly breached its recurringobligation (see Bulova Watch Co. v Celotex Corp., 46 NY2d 606, 611 [1979]; Beller v William Penn Life Ins. Co. ofN.Y., 8 AD3d 310, 313-314 [2004]).
Davidson's claim under Civil Rights Law § 51 may also be viable, since the statuteprohibits the use of a person's "name, portrait, picture or voice" for advertising or trade purposeswithout written consent, and it is undisputed that Davidson had no written contract of any kindwith FGG (see Harlock v Scott Kay,Inc., 14 AD3d 343, 344 [2005]). That claim survives only to the extent it concernsoffending material published within one year of the date this action was filed (see CPLR215 [3]; Nussenzweig v diCorcia, 9NY3d 184 [2007]; Costanza v Seinfeld, 279 AD2d 255 [2001]). Although FGGargues that Davidson implicitly consented to the exploitation of her name and image byperforming on the company's recordings, the requirement of a writing is explicit in the statute.FGG also alleges that it has never used Davidson's image and likeness since it assigned its rightsin the Angels' recordings to Smash Records in 1963, but it fails to make a prima facie showing ofthat allegation. Concur—Tom, J.P., Saxe, Nardelli, Renwick and Freedman, JJ. [PriorCase History: 2008 NY Slip Op 32333(U).]
Footnote 1: The latter two persons are notparties to this action.
Footnote 2: It can be inferred from therecord that Granahan was a principal of Sabina Records.
Footnote 3: A prior motion for renewal andreargument had been denied in April. Plaintiffs have not appealed that order.