Individual Defendant Was Not A Party To The Licensing Agreement With A Fees Clause Either.
In Eleanor Licensing LLC v. Classic Recreations LLC, Case Nos. B275429/B279238 (2d Dist., Div. 7 Mar. 21, 2018) (published), plaintiff won a licensing/quiet title/replevin dispute against defendants over title to a Mustang used in the movie “Gone in 60 Seconds.” One individual defendant was found to be the alter ego of two corporate defendants. The trial court awarded title to plaintiff, awarded damages of $6,657.75 to plaintiff, and awarded attorney’s fees to plaintiff in the amount of $176,050 based on a licensing agreement fees clause, joint and several against all defendants.
On appeal, the Court of Appeal reversed the breach of contract claim and alter ego findings. Interestingly enough, defendants on appeal argued that the fees award as to the corporate entity appellants should only be reversed if the judgment in entirety was reversed, something which did not happen because judgment based on other claims was sustained upon review. The result on appeal was that the fee award against the individual defendant fell based on the fact he was not a party of the license agreement and was found not to be an alter ego. However, the fees award against the remaining defendants stood based on the stance taken in the appeal on the fees issue.