Laura Siegel LARSON, individually and as personal representative of the Estate of Joanne Siegel v. WARNER BROS. ENTERTAINMENT, INC., a corporation; DC Comics, New York General Partnership
Nos. 11-55863, 11-56034
United States Court of Appeals, Ninth Circuit
Filed Jan. 10, 2013
Argued and Submitted Nov. 5, 2012.
AFFIRMED.
Marc Toberoff, Nicholas Williamson, Pablo David Arredondo, Toberoff & Associates PC, Los Angeles, CA, for Plaintiff-Counter-claim Defendant-Appellee.
Matthew T. Kline, Daniel Petrocelli, Cassandra Seto, Ashley Pearson, O‘Melveny & Myers, LLP, Los Angeles, CA, Jonathan Hacker, O‘Melveny & Myers LLP, Washington, DC, for Defendants-Counter-claimants-Appellees.
MEMORANDUM **
Defendants Warner Brothers Entertainment, Inc. and DC Comics (collectively, “DC“) appeal the district judge‘s grant of summary judgment to Plaintiff Laura Siegel Larson as to DC‘s third and fourth counterclaims (which, both parties concede, are governed by California law).1 The district judge entered judgment pursuant to
The district judge erred in granting summary judgment to Larson as to DC‘s third and fourth counterclaims. The central issue in these counterclaims is whether the parties reached a binding settlement agreement during their negotiations over the rights to Superman in 2001 and 2002. The district judge, however, failed to address whether the October 19, 2001, letter from Larson‘s then-attorney constituted an acceptance of terms negotiated between the parties, and thus was sufficient to create a contract. We hold, as a matter of law, that the October 19, 2001, letter did constitute such an acceptance.2 The October 19, 2001, letter itself plainly states that the heirs have “accepted D.C. Comics offer of October 16, 2001 in respect of the ‘Superman’ and ‘Spectre’ properties. The terms are as follows....” What follows is five pages of terms outlining substantial compensation for the heirs in exchange for DC‘s continued right to produce Superman works. The letter ends with Larson‘s attorney thanking DC‘s attorney for his “help and patience in reaching this monumental accord.” Further, although it is the objective, and not subjective, understandings of the parties that determine whether they reached an agreement, extrinsic evidence of the parties’ actions may be used to determine whether the oral offer referred to in the letter had, in fact, been made. Cf. Wedeck v. Unocal Corp., 59 Cal.App.4th 848, 69 Cal.Rptr.2d 501, 507-08 (1997). Statements from the attorneys for both parties establish that the parties had undertaken years of negotiations, that they had resolved the last outstanding point in the deal during a conversation on October 16, 2001, and that the letter accurately reflected the material terms they had orally agreed to on that day.
We reject Larson‘s arguments that either state or federal law precludes a finding that such a contract could have been created by the October 19, 2001, letter. California law permits parties to bind themselves to a contract, even when they
We therefore reverse the district judge‘s grant of summary judgment to Larson and direct the district judge to reconsider DC‘s third and fourth counterclaims in light of our holding that the October 19, 2001, letter created an agreement. Because a judgment on those claims in DC‘s favor would appear to render moot all of the other questions in this lawsuit, we decline to address these other issues at this time.
REVERSED IN PART and REMANDED.3
* The Honorable John W. Sedwick, Senior U.S. District Judge for the District of Alaska, sitting by designation.
** This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.
The parties shall bear their own costs on appeal.
