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Louisiana Court Lacks Personal Jurisdiction Over Jeopardy! Production Company in State's Effort to Collect Taxes
The Louisiana Court of Appeal affirmed a trial court ruling of lack of personal jurisdiction over the company behind the Jeopardy! game-show's production and merchandising rights, in the state's Department of Revenue (LDR) petition to get corporate and franchise taxes from the California-based entertainment company. Robinson v. Jeopardy Productions, 2019 CA 1095. The court of appeal explained: "Jeopardy's licensing and distribution agreements gave CBS [Television Distribution Group] and IGT [International Gaming Tech] the sole authority to decide in which states to license and/or distribute the 'Jeopardy!' game show, trademark/logo, and merchandise with unrelated third parties. The evidence was uncontroverted that Jeopardy [Productions] merely owns the intellectual property of the 'Jeopardy!' game show and trademark. Jeopardy has no control over where and with whom the licensees, CBS and IGT, choose to market and negotiate distribution of the game show and merchandise. Jeopardy made no intentional or direct contact with Louisiana. Furthermore, each licensing agreement specifically states that Jeopardy is not in a partnership, joint venture, or agency with CBS or IGT."
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Ticket Seller Not Responsible for Paying Refunds to Ticket Buyers "Out of Its Own Pocket" After Promoter Cancels Events Due to COVID-19
The U.S. District Court for the Eastern District of North Carolina denied judgment on the pleadings to a live events promoter in a lawsuit brought by a ticket seller following the promoter's cancellation of multiple events as a result of the COVID-19 pandemic. Etix Inc. v. After Dark Entertainment Inc., 5:20-cv-214. Web-based ticket seller Etix and concert promoter After Dark Entertainment had entered into an exclusive agreement under which Etix agreed to pay After Dark a signing bonus and was allowed to retain a portion of ticket-sales income before sending the balance of the sales revenues to After Dark. Following cancellation of more than a dozen events, Etix sued for breach of contract and unjust enrichment, seeking funds from After Dark to cover refunds to ticket buyers and for return of the signing bonus. Dark counterclaimed for breach of the ticketing-services contract, alleging Etix was required to refund ticket buyers, from monies Etix had, for 30 days after being informed of cancellation of an event. But Chief District Judge Terrence W. Boyle noted: "The refund provision in the [Etix/After Dark ticket services] agreement uses the language 'make refunds,' which stand in stark contrast to the numerous times where the agreement requires that one party 'pay' or provide a 'payment' to the other. For example, the agreement provides that plaintiff 'will pay' defendant a signing bonus and advance, that defendant will 'pa[y] back' plaintiff's advance through royalty charges per ticket, and that plaintiff will send defendant a 'payment' equal to the money it received for the ticket less the fees and taxes plaintiff is entitled to retain. … This Court finds that the parties did not intend for plaintiff to pay for any refunds out of its own pocket."
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