Bit Parts

The California Court of Appeal, Second District, ruled that a California trial court has personal jurisdiction over out-of-state defendants in a suit brought over an investment in a proposed film. Cameo FJ Entertainment v. Braidy, B220241. Plaintiffs Keith and Lee Pettle, owners of the California-based Cameo FJ Entertainment, sued in Los Angeles Superior Court alleging fraud and additional misrepresentations over their investment in the proposed motion picture Victims, which was never produced. According to the court of appeal: “In 2004, respondent Michael Kunath [a resident of Washington state] and representatives of Carousel Pictures [the latter aren't parties to the suit] met with appellants Keith and Lee Pettle co-owners of Cameo FJ Entertainment at the Chateau Marmont in Los Angeles ' The eight months following the Los Angeles meeting consisted of e-mails and phone negotiations between the Kunath and Carousel representatives. The e-mails involved multiple parties, across multiple jurisdictions.” (Co-defendants in the case are from Switzerland and Lichtenstein.) The superior court granted the defendants motion to dismiss. But reversing and remanding, the court of appeal noted, in an unpublished opinion, that the meeting in Los Angeles “provided the groundwork for the contract that later followed, and to establish the confidence required for Cameo FJ Entertainment to execute the power of attorney that led to the alleged losses. While it also appears that there were some negotiations that occurred in Washington State, however, like many modern business negotiations, a significant amount of negotiation occurred via e-mail and telephone.” The court of appeal added: “Any losses as a result of those communications form a relationship between that action and the forum involved ' California.”