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Employment Law
Fraud

Cindy Sivak v. Blue Sky Productions LLC

Published: Dec. 22, 2007 | Result Date: Aug. 27, 2007 | Filing Date: Jan. 1, 1900 |

Case number: 06CV0416(LAB) Verdict –  $739,698

Court

USDC Southern District of California


Attorneys

Plaintiff

Brian M. Grossman


Defendant

Robert S. Besser
(Law Offices of Robert S. Besser)


Facts

Plaintiff Cynthia Sivak provided writing and talent-booking services for defendant Blue Sky Productions LLC in connection with the gospel radio programs "The BeBe Winans Radio Show" and "A Moment of Inspiration." Blue Sky Productions LLC was the producer. The radio programs were syndicated and broadcast on various radio stations across the country."

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that she was lured from her home, friends and family on the east coast by her then-boyfriend, defendant Tom Versen, who promised to make her a partner in Blue Sky Productions LLC. Plaintiff further alleged that she worked for Blue Sky without pay for nearly 18 months, first laying the foundation for, and then researching, writing and producing syndicated radio programs for Blue Sky. When Blue Sky finally started paying the Plaintiff, it paid her only a small fraction of what she was worth in the marketplace, because the defendants were going to make up the difference with equity. That equity was never furnished to Sivak.

DEFENDANTS' CONTENTIONS:
Defendants contended plaintiff did not hold a valid copyright and that even if she did, defendant paid plaintiff for valid licenses which she could not terminate.

Damages

Plaintiff sought $500,000 for copyright violations, breach of contract and fraud.

Result

The issue that went to jury was whether Versen falsely promised plaintiff an equity interest in the company and/or an interest in future revenues from two of the radio shows in return for her working for the company. The jury ruled in favor of plaintiff on this issue and awarded $739,698 ($12,803 unjust enrichment/quantum meruit and $50,000 punitive damages against Blue Sky Productions; $43,645 unjust enrichment/quantum meruit, $75,250 breach of contract and $433,000 punitive damages against Versen; $125,000 fraud against Versen and Blue Sky Productions). The court granted defendants' Rule 50 motion for judgment on the copyright claims and decided in favor of defendants on plaintiff's declaratory relief claims for copyright. The court vacated the award of punitive damages and will be setting a new trial on the issue. The pre-trial scheduling conference is set for January 2008.


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