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, Suite 1830 Salt Lake City, UT 84101 Phone: 801-350-9000 Fax: 801-350-9010 Email: tsnow@padrm.com Attorneys for Plaintiff IN THE THIRD JUDICIAL DISTRICT COURT FOR SALT LAKE COUNTY, STATE OF UTAH
JIMMER FREDETTE, an individual, COMPLAINT Plaintiff, v. BLACK CLOVER ENTERPRISES, LLC, a Utah limited liability company, Defendant. Civil No.: ________________ Judge: ___________________ (JURY TRIAL REQUESTED)
Plaintiff Jimmer Fredette (Plaintiff or Fredette) alleges and complains against Defendant Black Clover Enterprises, LLC (Defendant or Black Clover) as follows: NATURE OF THE CASE 1. This is a breach of contract action in which Plaintiff seeks to recover money owed
to him under an Endorsement Agreement between Plaintiff and Defendant. Plaintiff additionally alleges that Defendant abused his identity without his consent and that Defendant has been unjustly enriched through its unauthorized use of Plaintiffs identity. 1
Sacramento County. 3. Upon information and belief, defendant Black Clover is a citizen of the state of
Utah, with its principal place of business at 352 West 12300 South, Suite 400, Draper, UT 84020. JURISDICTION AND VENUE 4. This Court has subject matter jurisdiction over this action pursuant to Utah Code
Ann. 78A-5-102(1). 5. Venue is proper in this Court pursuant to Utah Code Ann. 78B-3-304 because
the obligation was to be performed in this county, the parties signed the contract in this county, and the Defendant resides in this county. GENERAL ALLEGATIONS 6. Plaintiffs incorporate the allegations contained in paragraphs 1-5 above as though
set forth herein verbatim. 7. Plaintiff is a well-known figure within the State of Utah and across the United
States, because of his prominent basketball career, which has received national news and media attention, media attention that began while Plaintiff played basketball at Brigham Young University in Provo, Utah. Plaintiffs playing style, warm personality, and dominance on the basketball court led to significant notoriety, including numerous national awards, culminating
with the National Player of the Year award for the 2010-2011 season. Following his collegiate basketball career, Plaintiff was a lottery pick in the National Basketball Associations 2011 draft in June of 2011. 8. According to its website, Black Clover is a lifestyle apparel company with a
vision rooted in living life to the fullest. We simply call it Live Lucky. Every premium hat, piece of clothing and lifestyle accessory is designed to inspire and invite its owner to enjoy life, to embrace every day, to Live Lucky! 9. Defendant Black Clover sought to use Plaintiffs name and likeness to help
promote its lifestyle apparel. 10. Accordingly, effective March 15, 2012, Plaintiff and Defendant entered into an
Endorsement Agreement (See Endorsement Agreement Agreement, attached as Exhibit A) that would allow Defendant to use Plaintiffs name and likeness on various products, particularly Black Clover hats, and in various advertisements and promotions. (Ex. A, Agreement 3.) PLAINTIFFS OBLIGATIONS 11. Pursuant to the Agreement, Plaintiff had various obligations that he was required
to fulfill. For example, during the term of the Agreement, Plaintiff was required to make an Appearance Day where he would make himself available for two hours and Plaintiff was required to provide a certain number of signed products to the Defendant. (Id. 4.) 12. Plaintiff was also required to use commercially reasonable efforts, when possible
and appropriate in his sole discretion, to wear the Signature Product at media events and
mention and promote the Products, the Signature Products, or the Company . . . on each of his Facebook page and Twitter feed; provided that the content of such posting or message shall be determined by Athlete in his sole discretion. (Id. 5.) 13. Plaintiff performed all of his contractual obligations in all material respects. DEFENDANTS OBLIGATIONS 14. In consideration for the obligations imposed on Plaintiff by the Agreement,
Defendant accepted various obligations of its own. 15. Specifically, Defendant contractually agreed that it shall pay to Athlete a fee of
Fifty Thousand U.S. Dollars (US $50,000) (Fee) during each Year. The Fee for the first Year shall be due as follows: Twenty Five Thousand U.S. Dollars (US $25,000) due promptly upon execution hereof; and Twenty Five Thousand U.S. Dollars (US $25,000) due within six (6) months after execution hereof. (Id. 6.) 16. Defendant also agreed to pay Plaintiff royalties on all gross revenue generated
from the sale of products endorsed by Plaintiff: Company shall pay Athlete a royalty fee on all gross revenue generated by or on behalf of Company from the sale of all Endorsed Products at any time (Royalty or Royalties) as follows (i) with respect to all gross revenues between Fifty Thousand U.S. Dollars (US $50,000) and One Hundred Thousand U.S. Dollars ($100,000), five percent (5%) of such gross revenues; with respect to all gross revenues between One Hundred Thousand U.S. Dollars ($100,000) and Two Hundred Thousand U.S. Dollars ($200,000), eight percent (8%) of such gross revenues; and (iii) with respect to all gross revenues over Two Hundred Thousand U.S. Dollars ($200,000), ten percent of such royalties. (Id.).
17.
the term of the Agreement, at least two times per year. (Id.) 18. Defendant also promised to provide Plaintiff with Five Hundred U.S. Dollars
($500) wholesale value of Products and/or Endorsed Products and an additional Five Hundred U.S. Dollars ($500) wholesale value of Products and/or Endorsed Products to Plaintiffs agent. Moreover, Defendant agreed to provide Plaintiffs family and friends with discounted pricing. 19. Other relevant provisions of the Agreement state:
Company shall maintain detailed records, books, and accounts related to the Royalties. Company shall permit Athletes authorized agents or representatives, during normal business hours and by prior appointment, to inspect and copy from time to time relevant information pertaining to any monies received in connection with the Royalties. Company shall cooperate fully with Athletes auditors to assure a prompt and accurate audit of such relevant information. Company shall also cooperate in good faith with Athlete to correct any practices that are found to be deficient as a result of any such audit and Company shall, within ten (10) days of written notice thereof, pay to Athlete any outstanding amounts identified in any such audit. This provision shall survive the termination and/or expiration of this Agreement. (Id. 6.) 20. Additionally, Company shall protect, indemnify, defend, and hold harmless
Athlete, and his employees, agents, representatives and successors from and against . . . any material breach of this Agreement by Company. (Id. 11.) 21. In the event of termination of the Agreement, Defendant agreed that Plaintiff
would still be entitled to receive (1) the full Fee [$50,000] and (2) all Royalties through the effective date of termination . . . . (Id. 14.)
22.
Finally, [i]n the event of any litigation arising from or related to this Agreement,
the prevailing party shall be entitled to recover from the non-prevailing party all reasonable costs incurred, including staff time, court costs, attorneys fees, and all other related expenses incurred in such litigation. (Id. 20.) FIRST CAUSE OF ACTION (Breach of Contract Services Fees) 23. Plaintiff incorporates the allegations contained in paragraphs 1-22 above as
though set forth herein verbatim. 24. The Agreement constituted a valid and enforceable contract, agreed to by Plaintiff
and Defendant. 25. 26. Plaintiff fully performed his obligations under the Agreement. Defendant has failed to perform its express contractual obligations as set forth in
the Agreement. To the extent that Plaintiff has not performed, Defendant is the sole and exclusive cause of Plaintiffs lack of performance. 27. things: a. Agreement; b. Failing to pay the $25,000.00 Fee due within six months of the Failing to pay the $25,000.00 Fee due promptly upon execution of the Specifically, Defendant has breached the terms of the Agreement by, among other
Defendants breach of the express terms of the Agreement has resulted in harm to
to be proved with specificity at trial, but in all events, an amount of $50,000.00 or greater. 30. Pursuant to terms of the Agreement, Plaintiff is also entitled to an award of costs
and reasonable attorneys fees incurred in bringing this action. SECOND CAUSE OF ACTION (Breach of the Implied Covenant of Good Faith and Fair Dealing Services Fees) 31. Plaintiff incorporates the allegations contained in paragraphs 1-30 above as
though set forth herein verbatim. 32. The Agreement constituted a valid and enforceable contract, agreed to by Plaintiff
and Defendant. 33. By law, every contract includes an implied covenant of good faith and fair
dealing. Thus, the Agreement included an implied covenant of good faith and fair dealing. 34. Plaintiff. 35. Specifically, Defendant has breached the implied covenant of good faith and fair Defendant breached the implied covenant of good faith and fair dealing owed to
dealing by, among other things: a. Agreement; Failing to pay the $25,000.00 Fee due promptly upon execution of the
b.
Failing to pay the $25,000.00 Fee due within six months of the
execution of the Agreement; and c. Failing to promote, market, and sale the products endorsed by Plaintiff in a
commercially reasonable manner, thus reducing the value of the Agreement to Plaintiff and causing a premature termination of the Agreement. 36. Plaintiff. 37. Plaintiff has been damaged by Defendants breach of the Agreement in an amount Defendants breach of the express terms of the Agreement has resulted in harm to
to be proved with specificity at trial, but in all events, an amount of $50,000.00 or greater. 38. Pursuant to terms of the Agreement, Plaintiff is also entitled to an award of costs
and reasonable attorneys fees incurred in bringing this action. THIRD CAUSE OF ACTION (Breach of Contract Royalties) 39. Plaintiff incorporates the allegations contained in paragraphs 1-38 above as
though set forth herein verbatim. 40. The Agreement constituted a valid and enforceable contract, agreed to by Plaintiff
and Defendant. 41. 42. Plaintiff fully performed his obligations under the Agreement. Defendant has failed to perform its express contractual obligations as set forth in
the Agreement. To the extent that Plaintiff has not performed, Defendant is the sole and exclusive cause of Plaintiffs lack of performance. 8
43. things:
Specifically, Defendant has breached the terms of the Agreement by, among other
a.
of Plaintiffs endorsement of Defendants products; and b. Failing to provide Plaintiff with an accounting of gross revenues received,
so that Plaintiff could establish the gross revenues associated with the endorsed products. 44. Plaintiff. 45. Plaintiff has been damaged by Defendants breach of the Agreement in an amount Defendants breach of the express terms of the Agreement has resulted in harm to
to be proved with specificity at trial or as discovery proceeds in this matter. 46. Pursuant to terms of the Agreement, Plaintiff is also entitled to an award of costs
and reasonable attorneys fees incurred in bringing this action. FOURTH CAUSE OF ACTION (Breach of Contract of the Covenant of Good Faith and Fair Dealing Royalties) 47. Plaintiff incorporates the allegations contained in paragraphs 1-46 above as
though set forth herein verbatim. 48. The Agreement constituted a valid and enforceable contract, agreed to by Plaintiff
and Defendant. 49. By law, every contract includes an implied covenant of good faith and fair
dealing. Thus, the Agreement included an implied covenant of good faith and fair dealing.
Defendant breached the implied covenant of good faith and fair dealing owed to
Specifically, Defendant has breached the implied covenant of good faith and fair
dealing by, among other things: a. Failing to pay Plaintiff royalties on the gross revenues it received because
of Plaintiffs endorsement of Defendants products; b. Failing to provide Plaintiff with an accounting of gross revenues received,
so that Plaintiff could establish the gross revenues associated with the endorsed products. c. Failing to promote, market, and sale the products endorsed by Plaintiff in a
commercially reasonable manner, thus reducing the value of the Agreement to Plaintiff and causing a premature termination of the Agreement. 52. Defendants breach of the implied covenant of good faith and fair dealing has
resulted in harm to Plaintiff. 53. Plaintiff has been damaged by Defendants breach of the Agreement in an amount
to be proved with specificity at trial or as discovery proceeds in this matter. 54. Pursuant to terms of the Agreement, Plaintiff is also entitled to an award of costs
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FIFTH CAUSE OF ACTION (Abuse of Identity Violation of Utah Code Ann. 45-3-1 to -6) 55. Plaintiff incorporates the allegations contained in paragraphs 1-54 above as
though set forth herein verbatim. 56. Defendant caused advertisements to be published in which Plaintiffs personal
identity was used in a manner which expressed or implied that Plaintiff approved, endorsed, has endorsed, or will endorsed the specific subject matter of the advertisement. 57. Defendant knew it had not obtained Plaintiffs consent to use Plaintiffs personal
identity because it had not tendered payment of the $25,000.00 Fee to Plaintiff as required by the Agreement governing Defendants ability to use Plaintiffs personal identify. 58. Accordingly, Defendant knew that it had breached a material term of the
Agreement but proceeded to use Plaintiffs identity in advertisements and other promotional materials despite this knowledge. 59. As a result of Defendants knowing and purposeful abuse of Plaintiffs identity,
Plaintiff is entitled to injunctive relief, damages alleged and proved, exemplary damages, and reasonable attorney's fees and costs. Utah Code Ann. 43-5-4. SIXTH CAUSE OF ACTION (Unjust Enrichment) 60. Plaintiff incorporates the allegations contained in paragraphs 1-59 above as
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61.
ultimately, an Agreement that would allow Defendant to use Plaintiffs likeness and identity. 62. Defendant used Plaintiffs likeness and identify on a variety of Defendants
products and in various advertisements for its products. 63. This benefit was valuable to Defendant because of Plaintiffs popularity in Utah
and throughout the country and Defendant knew this benefit was valuable. 64. It would be inequitable under the circumstances described above to allow
Defendant to retain this benefit where Defendant lost its initial right to use the conferred benefit when it failed to pay Plaintiff the $25,000 Fee upon execution of the Agreement. 65. Accordingly, to the extent that Defendant has been unjustly enriched at Plaintiffs
expense, Plaintiff should be awarded the amount of Defendants unjust enrichment, which will be determined through discovery or at trial.
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PRAYER FOR RELIEF Wherefore, Plaintiff prays for judgment against Defendant as follows: 1. With respect to his First Cause of Action: a. b. c. d. Damages in an amount to be proven at trial, but no less than $50,000.00; Prejudgment and postjudgment interest as allowed by law; Costs and attorneys fees incurred in bringing this action; and Such other and further relief as the Court, in its discretion, deems appropriate. 2. With respect to his Second Cause of Action: a. b. c. a. Damages in an amount to be proven at trial, but no less than $50,000.00; Prejudgment and post-judgment interest as allowed by law; Costs and attorneys fees incurred in bringing this action; and Such other and further relief as the Court, in its discretion, deems appropriate. 3. With respect to its Third Cause of Action: a. An order requiring Defendant to provide an accounting of all gross revenues broken down by product; b. c. d. Damages in an amount to be proven with specificity at trial; Prejudgment and post-judgment interest as allowed by law; Costs and attorneys fees incurred in bringing this action; and
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e.
Such other and further relief as the Court, in its discretion, deems appropriate.
4.
With respect to its Fourth Cause of Action: a. An order requiring Defendant to provide an accounting of all gross revenues broken down by product; b. c. d. e. Damages in an amount to be proven with specificity at trial; Prejudgment and post-judgment interest as allowed by law; Costs and attorneys fees incurred in bringing this action; and Such other and further relief as the Court, in its discretion, deems appropriate.
5.
With respect to his Fifth Cause of Action: a. b. c. d. Damages alleged and proved; Exemplary damages; Reasonable attorneys fees and costs.; and Such other and further relief as the Court, in its discretion, deems appropriate.
6.
With respect to his Sixth Cause of Action: a. An order of restitution from Defendant to the extent it has been unjustly enriched at Plaintiffs expense; and
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b.
Such other and further relief as the Court, in its discretion, deems appropriate. JURY DEMAND
DATED: April 1, 2013 PIA ANDERSON DORIUS REYNARD & MOSS /s/ Tyson B. Snow Tyson B. Snow Attorneys for Plaintiff Jimmer Fredette
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EXHIBIT A