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H.B. Filmes, Ltda v. CBS, Inc.

Citation: 98 F. App'x 596Docket: Nos. 02-56931, 02-57215

Court: Court of Appeals for the Ninth Circuit; April 29, 2004; Federal Appellate Court

Narrative Opinion Summary

In the appellate case involving H.B. Filmes, Ltda. and Essay Films International, S.A. against CBS Broadcasting, Inc., the court reviewed a district court's summary judgment decision regarding multiple claims related to the film 'Kiss of the Spider Woman.' The appellate court, exercising jurisdiction under 28 U.S.C. § 1291, conducted a de novo review, resulting in a partial reversal and affirmation of the lower court's ruling. Key issues included breach of contract under California law, where the court found sufficient evidence to question the statute of limitations under the discovery rule, and fraud claims involving alleged misrepresentation of revenues. The court concluded that these claims presented genuine issues of material fact, reversing the summary judgment. However, it affirmed the summary judgment on a breach of contract and implied covenant claim, citing explicit contractual language negating obligations. Additionally, the court recognized a potential conversion claim due to breach of duty, leading to further reversals. The court's decision renders a previous procedural motion moot, and the case is remanded for further proceedings with specific citation restrictions on this unpublished disposition.

Legal Issues Addressed

Breach of Contract and the Discovery Rule under California Law

Application: The court finds a triable issue regarding whether the discovery rule should delay the statute of limitations, reversing summary judgment due to insufficient evidence of H.B.'s awareness of CBS's actions.

Reasoning: H.B. contends that a triable issue exists regarding whether the discovery rule should delay the statute of limitations on its breach of contract claim under California law.

Contractual Obligations and Implied Covenant

Application: The court affirms summary judgment on the breach of contract claim due to explicit contract terms negating obligations, dismissing H.B.'s assertion of an implied obligation.

Reasoning: The court affirms the summary judgment for the breach of contract claim, noting the contract explicitly negates an obligation for CBS to return materials.

Conversion and Breach of Duty

Application: The court recognizes the possibility of a conversion claim arising from a breach of duty, reversing summary judgment due to a material question of fact regarding the conversion claim.

Reasoning: However, the court recognizes that a tort claim for conversion may still stand, as allegations can arise from a breach of duty rather than a breach of promise within the contract.

Fraudulent Misrepresentation and Nondisclosure under California Law

Application: H.B. presents sufficient evidence to support a fraud claim based on misrepresentation of revenues, leading the court to reverse the summary judgment on this claim as both fraudulent representations and nondisclosure theories are considered valid.

Reasoning: The court finds both theories essentially the same and not grounds for dismissal. Additionally, CBS argues it had no duty to disclose its packaging practices.

Summary Judgment Standard under Federal Rule of Civil Procedure 56

Application: The court evaluates evidence in favor of the nonmoving party to identify genuine issues of material fact and assess the correct application of the law, leading to partial reversals and affirmations.

Reasoning: The court notes that the summary judgment standard requires assessing evidence in favor of the nonmoving party to identify any genuine issues of material fact and to evaluate the correct application of the law.