HBO Anti Slapp Motion To Strike
HBO Anti Slapp Motion To Strike
1 TABLE OF CONTENTS
2 Page
3 I. INTRODUCTION .................................................................................................. 1
4
II. RELEVANT FACTUAL BACKGROUND......................................................... 2
5
III. LEGAL STANDARD ......................................................................................... 6
6
7 IV. ARGUMENT ...................................................................................................... 8
1 TABLE OF AUTHORITIES
2 Page(s)
3 Cases
15 Connick v. Myers,
461 U.S. 138 (1983) ........................................................................................ 1, 15
16
17 Contreras v. Dowling,
5 Cal. App. 5th 394, 413 (2016) .......................................................................... 10
18
Cooper Cos. v. Transcon. Ins. Co.,
19
31 Cal. App. 4th 1094 (1995) .............................................................................. 22
20
D’Arrigo Bros. of California v. United Farmworkers of America,
21 224 Cal. App. 4th 790 (2014) .............................................................................. 12
22
Davies v. Grossmont Union High Sch. Dist.,
23 930 F.2d 1390 (9th Cir. 1991) ............................................................................. 17
24 Davis v. Electronic Arts Inc.,
25 775 F.3d 1172 (9th Cir. 2015) ............................................................................. 10
26 De Havilland v. FX Networks, LLC,
27 21 Cal. App. 5th 845, 849–50 (2018), review denied (Cal. Jul 11,
2018), cert. denied, 139 S. Ct. 800 (2019) ................................................ 1, 13, 14
28
1 TABLE OF AUTHORITIES
2 Page(s)
3 Dees v. Billy,
394 F.3d 1290 (9th Cir. 2005) ............................................................................... 7
4
East Bay Union of Machinists v. Fibreboard Paper Prods. Corp.,
5 285 F. Supp. 282 (N.D. Cal. 1968), aff’d, 435 F.2d 556 (9th Cir.
6 1970) .................................................................................................................... 21
7 In re Episcopal Church Cases,
8 45 Cal. 4th 467 (2009) ........................................................................................... 8
1 TABLE OF AUTHORITIES
2 Page(s)
3 Makaeff v. Trump Univ., LLC,
715 F.3d 254 (9th Cir. 2013) ......................................................................... 10, 11
4
Metabolife Int’l, Inc. v. Wornick,
5 264 F.3d 832 (9th Cir. 2001) ............................................................................... 11
6
Metabolife Intern., Inc. v. Wornick,
7 72 F. Supp. 2d 1160 (S.D. Cal. 1999) ................................................................... 6
8
N.A.A.C.P. v. Claiborne Hardware Co.,
9 458 U.S. 886 (1982) ............................................................................................ 11
10 N.Y. Times v. Sullivan,
11 376 U.S. 254 (1964) ................................................................................ 11, 13, 15
1 TABLE OF AUTHORITIES
2 Page(s)
3 Sheppard v. Lightpost Museum Fund,
146 Cal. App. 4th 315 (2006) ................................................................................ 7
4
Shulman v. Group W Productions, Inc.,
5 18 Cal. 4th 200 (1998) ......................................................................................... 16
6
Smith v. Daily Mail Pub. Co.,
7 443 U.S. 97 (1979) .............................................................................................. 14
8
Snyder v. Phelps,
9 562 U.S. 443 (2011) ............................................................................................ 15
10 State Farm Mut. Auto. Ins. Co. v. Campbell,
11 538 U.S. 408 (2003) ............................................................................................ 16
1 TABLE OF AUTHORITIES
2 Page(s)
3 Cal. Civ. Code § 1667............................................................................................... 18
1 I. INTRODUCTION
2 Less than two weeks before Leaving Neverland was scheduled to premiere
3 on HBO, Optimum Productions, John Branca, and John McClain (collectively,
4 “Plaintiffs”) very publicly filed a Petition to Compel Arbitration that aggressively
5 attacks HBO for exercising its free speech rights when it chose to exhibit the
6 documentary, seeks to compel an unavailable “public” arbitration over an expired
7 contract, and asserts they are entitled to more than $100 million in damages—
8 including punitive damages—allegedly arising from statements made in the film
9 about Michael Jackson. The only possible reason why Plaintiffs filed their Petition
10 in court was to attract maximum attention to their public relations campaign against
11 Leaving Neverland and the documentary’s subjects, two men who recount in the
12 film in extraordinary detail how, as boys, they were serially sexually abused by Mr.
13 Jackson. But neither the Estate of Michael Jackson nor anyone else owns history,
14 especially history involving a world-famous and controversial public figure.
15 Leaving Neverland’s filmmakers were fully within their rights to tell Mr. Robson’s
16 and Mr. Safechuck’s important stories, and HBO was fully within its rights to
17 exhibit the newsworthy documentary.
18 By filing their Petition seeking relief based on the content of a documentary
19 film about a matter of public concern in court, Plaintiffs triggered California’s anti-
20 SLAPP law, California Civil Code of Procedure section 425.16, which was enacted
21 to protect defendants against meritless claims arising from the exercise of free
22 speech rights. Plaintiffs’ unconstitutional conduct falls squarely within the
23 boundaries of what the anti-SLAPP law was enacted to prevent—deep-pocketed
24 plaintiffs using the prospect of expensive and time-consuming litigation (in
25 whatever forum) to chill speech they do not like. See De Havilland v. FX
26 Networks, LLC, 21 Cal. App. 5th 845, 849–50 (2018) (“The First Amendment
27 protects . . . expressive works and the free speech rights of their creators.”), review
28 denied (Cal. Jul 11, 2018), cert. denied, 139 S. Ct. 800 (2019); Connick v. Myers,
1 461 U.S. 138, 145 (1983) (“[T]he Court has frequently reaffirmed that speech on
2 public issues occupies the highest rung of the hierarchy of First Amendment values,
3 and is entitled to special protection.” (quotations omitted)).
4 Plaintiffs’ claims against Leaving Neverland—an expressive, newsworthy
5 work about an issue of unquestionable public concern—violate HBO’s First
6 Amendment and due process rights, and run afoul of California’s public policies.
7 And Plaintiffs seek to bring their disguised and legally barred defamation action by
8 reviving an inapplicable and long-expired 27-year-old contract. However, because
9 Plaintiffs cannot establish a probability of success on those claims, HBO’s Special
10 Motion to Strike should be granted and HBO awarded its attorneys’ fees.
11 II. RELEVANT FACTUAL BACKGROUND
12 HBO owns and operates the HBO premium pay television service, which
13 today contains over 3,000 hours of curated content, including, among other things,
14 original series, films, documentaries, and concert specials. HBO offers some of the
15 most innovative, honored, and critically respected programming on television. In
16 1992, that included the one-time exhibition of Michael Jackson: Live in Bucharest
17 (“Live in Bucharest”), a concert special presenting Mr. Jackson’s 1992 performance
18 during his Dangerous world tour.
19 More than 26 years later (and nearly a decade after Mr. Jackson’s death),
20 Leaving Neverland premiered on HBO. Leaving Neverland tells the personal
21 stories of two individuals who describe in detail how, as young boys, they were
22 sexually abused for years by Mr. Jackson. Leaving Neverland premiered on HBO
23 on March 3, 2019, in the midst of a nationwide cultural debate about sexual abuse
24 and harassment, and whether such misconduct had for too long been tolerated or
25 suppressed in favor of protecting the wealthy, famous, and powerful.
26 Plaintiffs and those who profit from Mr. Jackson’s legacy have castigated
27 HBO over Leaving Neverland, as is their right under the First Amendment (just as
28 it is HBO’s right to exhibit it). As part of Plaintiffs’ public relations campaign
1 against Leaving Neverland and its subjects, Plaintiffs demanded that HBO shelve
2 the documentary because, among other things, the filmmakers allegedly did not
3 seek to tell Mr. Jackson’s side of the story (which of course they had no obligation
4 to do). Plaintiffs also seek to apply a long-expired and irrelevant July 22, 1992
5 agreement between Home Box Office, a division of Time Warner Entertainment
6 Company, L.P. (“TWE,” which is not the same entity as Defendant HBO) and TTC
7 Touring Corporation (“TTC,” which is not the same entity as Plaintiff Optimum
8 Productions) (the “1992 Agreement”) regarding the production and exhibition of
9 Live in Bucharest, in an effort to bring an otherwise barred posthumous defamation
10 claim against HBO.1 See Dkt. 18, Ex. B.
11 Leaving Neverland screened at the Sundance Film Festival in January 2019.
12 It then premiered on HBO on March 3 and 4, 2019 (as a two-part documentary).
13 The documentary was developed and is owned by Amos Pictures, Ltd., which is not
14 a party to this lawsuit, and was licensed to HBO for distribution in the United
15 States, Canada, and Bermuda. Dkt. 22-1 ¶ 3. The film presents the stories of two
16 men, Wade Robson and James Safechuck, who describe how Mr. Jackson sexually
17 abused them as children, and tells that story from the survivors’ point of view,
18 including the lasting impact of the abuse on their lives. The documentary has
19 ignited important conversations and reckonings in the public and media regarding
20 Mr. Jackson and survivors of child abuse.
21 Plaintiffs’ public campaign against Leaving Neverland appears to have
22 kicked off in earnest shortly after the film premiered at Sundance, when Plaintiffs’
23 lawyer sent a ten-page letter to HBO, on February 7, 2019. The letter contained a
24 litany of complaints about Leaving Neverland, attacking its subjects as liars,
25 protesting that the Estate was not given an opportunity to tell its side of the story in
26 the film, calling HBO’s former CEO “naïve,” and ultimately lamenting that HBO’s
27 1
Plaintiffs allege that the parties to this action are the successors to the original
28 contracting parties. For purposes of this motion, HBO does not contest that
Optimum Productions is the successor to TTC.
HBO’S SPECIAL MOT. TO STRIKE
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1 involvement with the documentary “is just plain sad.” Dkt. 18, Ex. A, at 2–5.
2 Plaintiffs raised additional non-legal grievances about Leaving Neverland,
3 including that “[t]he usual checks on filmmakers are ethical and normative ones,”
4 and claiming that HBO “no longer cares” about such norms. Id. at 4. Notably,
5 Plaintiffs’ February 7 letter did not once mention the 1992 Agreement, nor did it
6 mention any actual legal claims the Estate believed it had against HBO. Rather, the
7 letter asked that HBO reconsider its decision to exhibit the documentary. See id. at
8 10 (offering “to meet with HBO” and present “further information and witnesses”
9 to counter Mr. Robson’s and Mr. Safechuck’s accounts). While the February 7
10 letter does not state that the Estate holds any continuing or relevant rights under the
11 1992 Agreement or the Confidentiality Provisions thereof, the letter acknowledges
12 that HBO and Jackson had worked together on Live in Bucharest. See id. at 9
13 (noting that HBO “had partnered with Michael to immense success”). Plaintiffs
14 never mentioned the prospect of arbitration or that they believed they had any
15 viable claims in their February 7 letter.
16 Two weeks later, Plaintiffs filed their Petition, seizing on a non-
17 disparagement sentence buried in the 1992 Agreement that Plaintiffs erroneously
18 assert enables them to avoid the black-letter bar on posthumous defamation claims.
19 However, Plaintiffs did not follow the usual path for pursuing arbitration. Rather
20 than filing an arbitration demand with the American Arbitration Association
21 (“AAA”), Plaintiffs filed their Petition in Superior Court for the County of Los
22 Angeles, on February 21, 2019, seeking a “public arbitration” of their claims for
23 breach of the 1992 Agreement. Dkt. 1-1 ¶ 73 (emphasis added). Plaintiffs asserted
24 they were seeking $100 million in damages—including punitive damages—before
25 HBO debuted Leaving Neverland to the public, on March 3 and 4. Only on March
26 5, after Leaving Neverland premiered on HBO, did Plaintiffs write to HBO to ask
27 whether it would agree to arbitrate. See Dkt. 22-1 ¶ 4, Ex. A.
28 In their Petition, Plaintiffs assert two claims, for breach of contract and
1 breach of the covenant of good faith and fair dealing, alleging that HBO “breached
2 [its] obligations” to Plaintiffs by disparaging Mr. Jackson and “disparaging the
3 Dangerous World Tour.” Dkt. 1-1 ¶ 83. However, Plaintiffs have not alleged, nor
4 to this day provided any evidence (because they cannot), that Leaving Neverland
5 contained any information (confidential or otherwise) that HBO obtained during the
6 course of its performance of the 1992 Agreement. See Dkt. 18, Ex. B (Ex. I, at 1)
7 (purporting to bar the use of “Confidential Information” obtained “[p]rior to and/or
8 during HBO’s contract or relationship with [TTC]” (emphasis added)).
9 After Plaintiffs filed their complaint, they and their counsel have continued to
10 wage a public relations campaign against HBO and Leaving Neverland. In doing
11 so, they have confirmed that their true complaint about the film is that it allegedly
12 defames Mr. Jackson. See Dkt. 1-1 ¶ 38 (calling film’s abuse allegations “utterly
13 false”). Indeed, in April 2019, Mr. Branca stated that “[b]ecause the laws of
14 defamation are what they are, there is nothing we can do or say. . . . The man can be
15 damaged, his kids can be hurt and theoretically nothing can be done. I’m going to
16 suggest the law should be changed to protect the deceased at least for a period of
17 time.” 2 In June 2019, Mr. Branca added that “there’s no reason why defamation
18 should not extend beyond somebody’s life . . . .” 3
19 Following briefing and arguments on Plaintiffs’ Motion to Compel
20 Arbitration, and in view of the Court’s recognition that “the initiation of litigation
21 itself can trigger First Amendment concerns,” (Dkt. 40 (7/15/2019 Tentative
22 Ruling), p. 9 (citing § 425.16(a))), HBO brings this Special Motion to Strike.
23
24
2
25 Claudia Rosenbaum, Michael Jackson Co-Executor John Branca Says He’s
Considering Suing ‘Leaving Neverland’ Director Dan Reed, Billboard (Apr. 16,
26 2019), https://www.billboard.com/articles/news/8507510/michael-jackson-estate-
27 hits-back-leaving-neverland.
3
28 UCLA Law School Presentation: Truth Be Told? Documentary Films Today (at
1:15-1:30), available at https://www.youtube.com/watch?v=Wcd1ISN7JuQ.
HBO’S SPECIAL MOT. TO STRIKE
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1 judicial power to order something not even contemplated by the FAA, the AAA
2 Rules, or the 1992 Agreement—a “public” arbitration. Dkt. 1-1 ¶ 73 (emphasis in
3 original). HBO therefore brings its timely Special Motion to Strike Plaintiffs’
4 Petition.6
5 IV. ARGUMENT
6 A. Plaintiffs’ Claims Arise from an Exercise of HBO’s Free Speech Rights
on a Public Issue.
7
Plaintiffs’ claims arise from HBO’s exhibition of Leaving Neverland, an act
8
unquestionably in furtherance of HBO’s free speech rights on a public issue. Under
9
California’s anti-SLAPP law, causes of action “arising from any act of [a]
10
[defendant] in furtherance of the [defendant’s] right of . . . free speech . . . in
11
connection with a public issue” are subject to a special motion to strike. Cal. Civ.
12
Proc. Code § 425.16(b)(1); see also § 425.16(e)(4) (further defining law to cover
13
“any other conduct in furtherance of the exercise of . . . the constitutional right of
14
free speech in connection with a public issue or an issue of public interest”). Courts
15
analyze “the gravamen or principal thrust” of a plaintiff’s claims to determine
16
whether they are “based on the defendant’s protected free speech or petitioning
17
activity.” In re Episcopal Church Cases, 45 Cal. 4th 467, 477–78 (2009)
18
(quotations omitted).
19
Plaintiffs’ Petition raises two causes of action: (1) breach of contract based
20
on alleged breach of a non-disparagement sentence, and (2) breach of the covenant
21
22
6
Plaintiffs’ suggestion that the 60-day timing provision of Section 425.16 applies
23 in federal court is wrong. Bach Decl., Ex. B at 19:13–19. Where, as here,
24 California’s anti-SLAPP is applied in a federal court sitting in diversity, the 60-day
rule is preempted by the federal rules. Sarver v. Chartier, 813 F.3d 891, 900 (9th
25 Cir. 2016) (“declin[ing] to apply the statute’s 60-day time frame in federal court,
26 and . . . refer[ing] instead to our own rules of procedure” to find that “defendants’
anti-SLAPP motions were timely filed”); see also Planned Parenthood Fed. Of
27
Am., Inc. v. Center for Med. Progress, 890 F.3d 828, 833–34 (9th Cir. 2018)
28 (construing anti-SLAPP motion’s procedure under either Rule 12(b)(6) or Rule 56,
depending on grounds therefore).
HBO’S SPECIAL MOT. TO STRIKE
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1 of good faith and fair dealing. See Dkt. 1-1, pp. 21–22. Both of these causes of
2 action arise from what Plaintiffs describe as “HBO’s production and airing of
3 Leaving Neverland[,]” a clear exercise of HBO’s free speech to which the anti-
4 SLAPP law applies. Dkt. 1-1 ¶ 24; see, e.g., Tamkin v. CBS Broadcasting, Inc.,
5 193 Cal. App. 4th 133, 143 (2011) (confirming “[t]he creation of a television show
6 is an exercise of free speech” to which anti-SLAPP law applies). Leaving
7 Neverland presents the important stories of two individuals who detail their
8 experiences of being sexually abused by Mr. Jackson, arguably one of the world’s
9 most famous public figures. Their stories are all the more compelling and
10 newsworthy because they also describe how and why they were afraid to come
11 forward for years, including during a prior public trial. California law and public
12 policy make clear the critical public interest in protecting minors from sexual abuse
13 and in encouraging them and others to come forward with the truth. Cal. Civ. Proc.
14 Code § 1002(a)(3) (prohibiting confidentiality provisions in civil settlements that
15 “prevent[] the disclosure of factual information” for any acts of “childhood sexual
16 abuse” or “sexual exploitation of a minor”); see also Cal. Penal Code § 11164 et
17 seq. (imposing a mandatory reporting obligation on certain individuals in cases of
18 known or suspected child abuse or neglect). 7
19 While Plaintiffs allege contract claims, the gravamen of their claims arises
20 from HBO’s exercise of its free speech rights in exhibiting Leaving Neverland, a
21 documentary about a public figure and issues of unquestionable public interest. “It
22 is settled that ‘a plaintiff cannot avoid operation of the anti-SLAPP statute by
23 attempting, through artifices of pleading, to characterize an action as a ‘garden
24 variety’ . . . contract claim when in fact the claim is predicated on protected speech
25
7
26 The legislative history of these laws confirms that the public “has such a strong
interest in the prosecution of individuals who commit acts of childhood sexual
27
abuse and exploitation that the ordinarily useful tool of confidentiality provisions in
28 settlement agreements should not be allowed in civil actions based upon those
acts.” See Dkt. 22-2 ¶ 6, Ex. E.
HBO’S SPECIAL MOT. TO STRIKE
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1 or conduct.’” Contreras v. Dowling, 5 Cal. App. 5th 394, 413 (2016) (citations
2 omitted). In Vivian v. Laburcherie, for example, a plaintiff brought a breach of
3 contract claim for a defendant’s alleged breach of a non-disparagement provision.
4 Facing an anti-SLAPP motion, the plaintiff argued the action was not filed “because
5 [the defendant] engaged in protected speech but because [the defendant] breached a
6 contract that prohibit[ed] her from engaging in certain speech-related conduct.”
7 214 Cal. App. 4th 267, 273 (2013). The court disagreed, and held that the
8 plaintiff’s claim for breach of a non-disparagement provision was subject to an anti-
9 SLAPP motion. See id.
10 Plaintiffs’ claims indisputably arise from HBO’s exhibition of Leaving
11 Neverland, which is an act in furtherance of HBO’s constitutional right of free
12 speech in connection with an issue of public interest (see § 425.16(e)(4)). Indeed,
13 the Court recognized as much in its July 15, 2019 tentative ruling. Dkt. 40, p. 9 (“It
14 cannot be doubted that Plaintiffs’ arbitration action is seeking to recover damages
15 based upon [HBO’s] broadcasting a documentary.”). HBO has therefore
16 established that the first prong of the anti-SLAPP law is met, and the burden shifts
17 to Plaintiffs to establish that their claims have merit.
18 B. Plaintiffs Cannot Establish a Reasonable Probability that They Will
Prevail on Their Claims, and Their Petition Must Be Struck.
19
Under the second prong, the burden shifts to the plaintiff “to establish a
20
reasonable probability that it will prevail on its claim in order for that claim to
21
survive dismissal.” Makaeff v. Trump Univ., LLC, 715 F.3d 254, 261 (9th Cir.
22
2013). Courts consider not only the “substantive merits of the plaintiff’s
23
complaint,” for which the plaintiff bears the burden of proof, but also “all available
24
defenses . . . including, but not limited to constitutional defenses.” Traditional Cat
25
Ass’n, Inc. v. Gilbreath, 118 Cal. App. 4th 392, 398 (2004). A defendant carries its
26
burden to show that an affirmative defense is available if it establishes “a
27
probability of prevailing” on the merits of the defense. Davis v. Electronic Arts
28
Inc., 775 F.3d 1172, 1177 (9th Cir. 2015) (quoting Premier Med. Mgmt. Sys., Inc. v.
HBO’S SPECIAL MOT. TO STRIKE
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1 Cal. Ins. Guarantee Ass’n, 136 Cal. App. 4th 464, 477 (2006)).
2 The ultimate burden rests, however, with the plaintiff. See Premier Med.
3 Mgmt. Sys., 136 Cal. App. 4th at 479 (trial court erred in denying defendant’s
4 motion to strike because plaintiff failed to establish that exception to affirmative
5 defense—which defendants “established a probability of prevailing on”—was
6 available); Wagner v. S. Cal. Edison Co., 2019 WL 1746129, at *4 (C.D. Cal. Apr.
7 18, 2019) (at second step, plaintiff must “present admissible evidence to defeat any
8 privilege or legal defenses raised by the defendant”). Accordingly, a plaintiff’s
9 claim must be dismissed if it “presents an insufficient legal basis for [the claim], or
10 if, on the basis of the facts shown by the plaintiff, ‘no reasonable jury could find for
11 the plaintiff.’” Makaeff, 715 F.3d at 261 (quoting Metabolife Int’l, Inc. v. Wornick,
12 264 F.3d 832, 840 (9th Cir. 2001)).
13 Here, Plaintiffs cannot establish that there is a reasonable probability they
14 will prevail on their breach of contract claims for two reasons. First, Plaintiffs’
15 claims unlawfully target HBO’s free speech rights in violation of the First
16 Amendment, the Due Process Clause, and public policy. Second, Plaintiffs cannot
17 state claims for breach because the 1992 Agreement is terminated and does not
18 pertain to Leaving Neverland. In other words, Plaintiffs’ breach of contract claims
19 fail as a matter of law because there is no valid contract on which to sue.
20 Accordingly, HBO’s motion to strike should be granted.
21 1. The First Amendment, Due Process Clause and California Public
Policy Forbid Enforcement of the Non-Disparagement Sentence.
22
By filing a petition in court and asking this Court to use its judicial power to
23
further their efforts to attack HBO’s speech, Plaintiffs have deliberately enmeshed
24
this Court in an interpretive exercise that constitutes “state action,” thereby
25
invoking First Amendment protections. See N.Y. Times v. Sullivan, 376 U.S. 254,
26
265 (1964) (in a “civil lawsuit between private parties,” a court’s application of “a
27
state rule of law” can “impose invalid restrictions on . . . constitutional freedoms of
28
speech and press”); N.A.A.C.P. v. Claiborne Hardware Co., 458 U.S. 886, 916 n.51
HBO’S SPECIAL MOT. TO STRIKE
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1 though it is in fact true. . . .” Sullivan, 376 U.S. at 725. Plaintiffs’ claims strike
2 directly “[a]t the heart of the First Amendment,” which protects without fear of
3 punishment “the free flow of ideas and opinions on matters of public interest and
4 concern.” Hustler Magazine, Inc. v. Falwell, 485 U.S. 46, 50–51 (1988) (noting
5 that “[t]he freedom to speak one’s mind is not only an aspect of individual liberty
6 . . . but also is essential to the common quest for truth and the vitality of society as a
7 whole”); see also Sullivan, 376 U.S. at 725 (“[T]he pall of fear and timidity
8 imposed upon those who would give voice to public criticism is an atmosphere in
9 which the First Amendment freedoms cannot survive.”).
10 That Plaintiffs’ claims target not only protected speech but also a work of
11 creative expressive speech containing newsworthy journalism is particularly
12 noxious. The core First Amendment rights of filmmakers have been recognized
13 and reaffirmed by the California Court of Appeal and the Ninth Circuit in the recent
14 cases De Havilland v. FX Networks, LLC and Sarver v. Chartier, respectively—
15 both of which applied the anti-SLAPP law to strike unlawful challenges to
16 protected speech. The Ninth Circuit reiterated that film “is speech that is fully
17 protected by the First Amendment, which safeguards the storytellers and artists who
18 take the raw materials of life—including the stories of real individuals, ordinary or
19 extraordinary—and transform them into art, be it articles, books, movies, or plays.”
20 Sarver, 813 F.3d at 905 (emphasis added). The California Court of Appeal,
21 expanding on Sarver, confirmed the critical First Amendment rights at issue:
22 Authors write books. Filmmakers make films. Playwrights craft
plays. And television writers, directors, and producers create
23 television shows and put them on the air—or, in these modern times,
online. The First Amendment protects these expressive works and
24 the free speech rights of their creators.
25 De Havilland, 21 Cal. App. 5th at 849–50 (emphasis added). The court in De
26 Havilland went on to observe:
27
28
1 v. Daily Mail Pub. Co., 443 U.S. 97, 102 (1979)); id. at 533–34 (“Core purposes of
2 the First Amendment” are implicated where a party attempts to “impose[] sanctions
3 on the publication of truthful information of public concern.”). Whether Plaintiffs
4 maintain that the statements in Leaving Neverland are false or broadly disparaging,
5 they cannot demonstrate actual malice by clear and convincing evidence, as
6 required when attacking speech about a public figure on an issue of public concern.
7 Moreover, to expose HBO to the threat of damages for speech at a lower
8 threshold than truthfulness and actual malice, Plaintiffs must prove that HBO
9 waived, by clear and convincing evidence, its First Amendment rights to
10 “disparage” Mr. Jackson for all time. Leonard v. Clark, 12 F.3d 885, 889–90 (9th
11 Cir. 1993) (to be valid, a First Amendment waiver must be proved to be knowing,
12 intelligent and voluntary “by clear and convincing evidence”); see Sullivan, 376
13 U.S. at 725 (noting danger of making actionable speech without finding of actual
14 malice because “[a] rule compelling the critic of official conduct to guarantee the
15 truth of his actual assertions . . . leads to . . . self-censorship”). Plaintiffs cannot do
16 so, and their claims therefore fail for this reason alone.
17 Moreover, that Mr. Jackson is a high-profile public figure further underscores
18 the serious First Amendment concerns that Plaintiffs’ claims raise. See Sullivan,
19 376 U.S. at 270 (confirming the “profound national commitment to the principle
20 that debate on public issues should be uninhibited, robust, and wide-open, and that
21 it may well include vehement, caustics, and sometimes unpleasantly sharp attacks”
22 on public individuals). Leaving Neverland is a timely public exploration of
23 compelling accusations of sexual abuse of minors by a famous and powerful
24 individual, an issue of unquestionable public interest. Snyder v. Phelps, 562 U.S.
25 443, 452 (2011) (“‘[S]peech on public issues occupies the highest rung of the
26 hierarchy of First Amendment values, and is entitled to special protection.’”)
27 (quoting Connick, 461 U.S. at 145 (internal quotation marks omitted)).
28 Plaintiffs’ claims also run afoul of the core First Amendment protections that
1 of the claims that Plaintiffs now seek to assert against it. See F.C.C. v. Fox
2 Television Stations, Inc., 567 U.S. 239, 253 (2012) (finding broadcaster’s due
3 process rights were violated and noting that “void for vagueness doctrine addresses
4 at least two connected but discrete due process concerns: first, that regulated parties
5 should know what is required of them so they may act accordingly; second,
6 precision and guidance are necessary so that those enforcing the law do not act in
7 an arbitrary or discriminatory way”); id. at 253–54 (“When speech is involved,
8 rigorous adherence to those requirements is necessary to ensure that ambiguity does
9 not chill protected speech.”); see also Reno v. ACLU, 521 U.S. 844, 871–72 (1997)
10 (“The vagueness of [a content-based regulation of speech] raises special First
11 Amendment concerns because of its obvious chilling effect on free speech.”).
12 Reading perpetual life into the non-disparagement sentence nearly three
13 decades after the 1992 Agreement was fully performed, and for the purpose of
14 chilling unrelated speech by alleged successors-in-interest, is the type of overbroad
15 and arbitrary suppression of speech that would violate HBO’s due process rights.
16 That violation is particularly acute here, where Petitioners are trying to bring a
17 legally and constitutionally barred defamation claim disguised as a contract claim.
18 c. The Non-Disparagement Sentence Is Also Unenforceable on
Public Policy Grounds.
19
Other important public policies also militate against allowing Plaintiffs to
20
pursue their claims against HBO for exhibiting Leaving Neverland. See Cal. Civ.
21
Code § 1667 (“private contracts that violate public policy are unenforceable”);
22
Leonard, 12 F.3d at 889–90 (First Amendment waivers will not be enforced “if the
23
interest in its enforcement is outweighed in the circumstances by a public policy
24
harmed by enforcement” of the waiver); Fisher v. DCH Temecula Imports LLC,
25
187 Cal. App. 4th 601, 617 (2010).
26
For instance, enforcement of the non-disparagement sentence would run
27
afoul of the constitutional and statutory limitations against defamation claims
28
brought on behalf of deceased individuals. See, e.g., Kelly, 160 Cal. App. 2d at
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1 723. The United States and California Supreme courts have repeatedly refused to
2 allow plaintiffs to perform an end-run around bars on defamation claims by
3 assigning a different label to their claim. See, e.g., Reader’s Digest Ass’n, Inc. v.
4 Superior Court, 37 Cal. 3d 244, 265 (1984) (noting that Sullivan “defined a zone of
5 constitutional protection within which one could publish concerning a public figure
6 without fear of liability” that does “not depend on the label given the stated cause of
7 action”); see also Hustler Magazine, 485 U.S. at 56 (extending actual malice
8 standard from defamation to intentional infliction of emotional distress and holding
9 that public figures “may not recover for [IIED] . . . without showing in addition that
10 the publication contains a false statement of fact which was made with ‘actual
11 malice’”); Kashani v. Tsann Kuen China Enterprise Co., 118 Cal. App. 4th 531,
12 543 (2004) (“[A] violation of federal law is a violation of law for purposes of
13 determining whether or not a contract is unenforceable as contrary to the public
14 policy of California.”).
15 Applying the non-disparagement sentence to HBO’s exhibition of a
16 documentary film regarding a deceased individual would be unprecedented for
17 another reason: it would legitimize the creation of a special category of wealthy,
18 powerful, or famous individuals who could—through a lifetime of contracts with or
19 influence over news or media companies—preserve via contract posthumous
20 control over how they are portrayed in a way that ordinary citizens cannot. Such a
21 result would run counter to California’s public policy barring claims for defamation
22 of deceased individuals. See Kelly, 160 Cal. App. 2d at 723.
23 2. Plaintiffs Cannot Establish a Reasonable Probability of Prevailing
on Their Breach of Contract Claims because the 1992 Agreement
24 Does Not Pertain to Leaving Neverland and Is Expired.
25 Plaintiffs’ claims fail for another reason: the non-disparagement sentence on
26 which they are based is inapplicable and expired. To prevail on their contract
27 claims, Plaintiffs must prove “the existence of a valid contract, [Plaintiffs’]
28 performance of the contract or excuse for nonperformance, [HBO]’s breach, and
1 resulting damage.” Bakst v. Comm. Mem. Health Sys., Inc., 2011 WL 13214315, at
2 *7 (C.D. Cal. Mar. 7, 2011) (describing elements of claim for breach of contractual
3 non-disparagement provision). But Plaintiffs cannot demonstrate that there is a
4 reasonable probability they will prevail on their claims because they cannot
5 establish the existence of a contract that applies to this dispute, much less a valid
6 contract. First, the 1992 Agreement is inapplicable to this dispute, which neither
7 pertains to Live in Bucharest nor implicates confidential information that HBO
8 learned in the performance of the Agreement. Second, because the 1992
9 Agreement terminated decades ago with no survivability provision, there is no
10 existing valid agreement on which Plaintiffs may sue.
11 a. The 1992 Agreement Does Not Pertain to Leaving Neverland.
12 Plaintiffs’ claims fail for the simple reason that the 1992 Agreement does not
13 reach Leaving Neverland. The Confidentiality Provisions that contain the non-
14 disparagement sentence specifically state that the confidentiality guidelines apply to
15 information “acquired by HBO in the course of HBO’s contact with Licensor and
16 Performer,” but specifically do not address any later-acquired information. Dkt.
17 18, Ex. B (Ex. I, at 1) (emphasis added). But Plaintiffs have not and cannot prove
18 that HBO obtained any information from TTC or Mr. Jackson during performance
19 of the 1992 Agreement that was included in Leaving Neverland. To the contrary,
20 the documentary was developed by a third party, Amos Pictures, based on the
21 stories of two men who independently and willingly provided information to the
22 filmmakers. See Dkt. 22-1 ¶ 3. Amos Pictures then licensed the documentary to
23 HBO for distribution in the United States, Canada, and Bermuda. See id.
24 Leaving Neverland thus falls categorically outside the scope of the
25 Confidentiality Provisions because Plaintiffs have not provided any evidence that
26 HBO obtained confidential information or trade secrets during the 1992 filming of
27 Live In Bucharest; that HBO provided confidential information to the filmmakers
28 who independently shot, filmed, and created Leaving Neverland; or that the
1 filmmakers then incorporated such information into Leaving Neverland. See Cal.
2 Civ. Code § 1648 (“However broad may be the terms of a contract, it extends only
3 to those things concerning which it appears that the parties intended to contract.”);
4 id. § 1650 (“Particular clauses of a contract are subordinate to its general intent.”).
5 Moreover, Leaving Neverland and Live in Bucharest are entirely separate
6 films, and bear no relation to one another. Leaving Neverland does not mention or
7 discuss Live in Bucharest, the Bucharest concert itself, or HBO’s exhibition of the
8 Live in Bucharest concert special; it contains no concert footage or other content
9 from Live in Bucharest; and it neither mentions nor discusses the 1992 Agreement.
10 See Dkt. 30, at 4–5. There is simply no connection between the 1992 Agreement
11 and Leaving Neverland.
12 b. No Valid Contract Exists because the 1992 Agreement and
Its Non-Disparagement Sentence Have Expired.
13
Once a contract has expired, “[i]t logically follows” that there can be no
14
breach of that contract because there is “no contract in existence to breach.” East
15
Bay Union of Machinists v. Fibreboard Paper Prods. Corp., 285 F. Supp. 282, 288
16
(N.D. Cal. 1968), aff’d, 435 F.2d 556 (9th Cir. 1970). Under California law, a
17
contract that has been fully performed by both parties, as the 1992 Agreement has
18
been here, is terminated and expired. Cal. Civ. Code § 1473 (“Full performance of
19
an obligation, by the party whose duty it is to perform it . . . extinguishes it.”); Giles
20
v. Horn, 100 Cal. App. 4th 206, 228 (2002) (plaintiffs’ contract claim dismissed as
21
moot where “contracts [had] been fully performed and [had] expired”); Hidden
22
Harbor v. Am. Fed’n of Musicians, 134 Cal. App. 2d 399, 402 (1955) (contract
23
deemed expired when “fully performed by both parties” and has “no vitality after
24
its termination”).
25
The 1992 Agreement granted TWE a license to exhibit the program on HBO
26
“one time only” on October 10, 1992, “and at no other time.” Dkt. 18, Ex. B at 2.
27
In consideration for these rights, TWE paid TTC a license fee, the last portion of
28
which was to be delivered within five days after the delivery of the program to
HBO’S SPECIAL MOT. TO STRIKE
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1 TWE (with delivery no later than October 8, 1992). Id. at 1–2. The longest any
2 performable rights or obligations lasted under the 1992 Agreement was through the
3 “Holdback Period”—defined as the 12-month period immediately following the
4 October 10, 1992 exhibition date. Id. at 2, 5–6. The parties to the 1992 Agreement
5 fully performed their obligations a quarter-century ago, after the conclusion of the
6 Holdback Period ended, on or about October 10, 1993 (one year after exhibition of
7 the concert special). See Dkt. 22-1 ¶ 2. HBO has not exhibited the special since
8 October 10, 1992, and it is not currently available on any HBO platform, nor has it
9 been available since the original, one-time exhibition more than 25 years ago. See
10 id. ¶ 5. The obligations under the 1992 Agreement have thus long been fulfilled,
11 and the Agreement has terminated.
12 Plaintiffs cannot establish that the non-disparagement sentence survived
13 performance of the Agreement. Courts as a matter of sound policy do not interpret
14 contracts as conferring perpetual rights unless clearly and specifically provided.
15 Cooper Cos. v. Transcon. Ins. Co., 31 Cal. App. 4th 1094, 1103 (1995)
16 (“[C]onstruing a contract to confer a right in perpetuity is clearly disfavored.”);
17 Nissen v. Stovall-Wilcoxson Co., 120 Cal. App. 2d 316, 319 (1953) (“A
18 [contractual] construction conferring a right in perpetuity will be avoided unless
19 compelled by the unequivocal language of the contract.” (emphasis added))
20 (quoting 17 C.J.S. Contracts § 398); id. (“A contract will be construed to impose an
21 obligation in perpetuity only when the language of the agreement compels that
22 construction.” (emphasis added) (internal quotations and second citation omitted)).
23 In recognition of this policy, courts hold that rights that arise under non-
24 disparagement and confidentiality clauses survive contract termination only where
25 the contract specifically provides for that result. See Allan Block Corp. v. Cty.
26 Materials Corp., 634 F. Supp. 2d 979, 1000 (D. Minn. 2008) (dismissing plaintiff’s
27 claim that defendant breached non-disparagement provisions “months after the
28 termination” of the contracts because although “a contractual provision may survive
1 the underlying contract’s expiration,” there was “no language” in the contracts
2 “indicat[ing] that the non-disparagement provisions survive termination”); see also
3 Am. Family Mut. Ins. Co. v. Roth, 485 F.3d 930, 933 (7th Cir. 2007) (contract
4 forbidding disclosure of confidential information that is not a trade secret is
5 “enforceable . . . only if the contractual prohibition is reasonable in time and scope
6 and, specifically, only if its duration is limited” (emphasis added)).
7 The 1992 Agreement says nothing about survival of the non-disparagement
8 sentence. The parties could have so provided, of course, if that was their intention.
9 But there is simply no language in the Agreement stating that HBO agreed to be
10 bound for all time from publishing anything that might be considered to be
11 disparaging of Mr. Jackson. Indeed, HBO has not found a single case (in California
12 or elsewhere) where a non-disparagement clause was enforced posthumously, let
13 alone in perpetuity. If the parties intended such an unusual agreement to
14 perpetually waive HBO’s First Amendment rights, it had to be explicit.11
15 Plaintiffs’ (and their alleged predecessors’) conduct is also inconsistent with
16 their apparent newfound belief that the 1992 Agreement is still viable. Specifically,
17 HBO does not have in its records any notices from TTC or Mr. Jackson’s
18 representatives informing HBO that Optimum Productions was stepping into TTC’s
19 shoes regarding any alleged ongoing rights and obligations of the 1992 Agreement,
20
11
21 Plaintiffs’ interpretation also belies common sense. It would mean that in
exchange for the right to exhibit one concert, one time, in addition to paying a
22
license fee, HBO agreed to restrict in perpetuity everyone involved in any future
23 programming to be exhibited by HBO—be it a stand-up comic, late-night talk show
host, or documentary filmmaker—from commenting on a controversial public
24
figure. See Cal. Civ. Code §§ 1648 (“However broad may be the terms of a
25 contract, it extends only to those things concerning which it appears that the parties
26 intended to contract.”); 1643 (“contract must receive such an interpretation as will
make it lawful, operative, definite, reasonable, and capable of being carried into
27 effect” (emphases added)); 1638 (“The language of a contract is to govern its
28 interpretation, if the language is clear and explicit, and does not involve an
absurdity.” (emphasis added)).
HBO’S SPECIAL MOT. TO STRIKE
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1 nor any notices providing updated contact information for those parties pursuant to
2 the Notice provision of the Agreement. See Dkt. 22-1 ¶ 7. The Notice section of
3 the Agreement provides that notice to TTC should be sent to Greenberg, Glusker,
4 Fields, Claman & Machtinger with copies to MJJ Productions, Inc. (“MJJ”), via the
5 business management firm Breslauer, Jacobson, Rutman & Sherman. See Dkt. 18,
6 Ex. B at 8. But neither TTC nor MJJ is a party to this action, and neither Greenberg
7 Glusker nor Breslauer Jacobson apparently represents any of the Plaintiffs. Indeed,
8 Breslauer Jacobson no longer exists, having ceased using that same name in 1993,
9 and being fully dissolved in 2007. See Dkt. 22-2 ¶¶ 3–5, Exs. B, C, D. 12 Plaintiffs’
10 failure to act consistent with a belief that there was a valid agreement is further
11 confirmation that, prior to their efforts to attack Leaving Neverland, no one thought
12 the 1992 Agreement had any continuing validity.
13 But, the best evidence regarding the Parties’ belief regarding the expiration
14 (and inapplicability, see supra, Section IV.B.2.a.) of the contract is Plaintiffs’ own
15 conduct in seeking to dissuade HBO from exhibiting Leaving Neverland. Before
16 Plaintiffs filed their Petition on February 21, 2019, their counsel sent HBO’s former
17 CEO a letter, on February 7, 2019, strenuously demanding that HBO not show the
18 documentary. Dkt. 18, Ex. A. However, nowhere in that detailed ten-page letter
19 did Plaintiffs’ counsel ever mention the non-disparagement sentence or mention
20 any legal claims that Plaintiffs believed they had against HBO. The reason is
21 obvious—Plaintiffs did not believe they had any viable claim against HBO,
22 whether in tort or based on a 26-year-old, fully performed contract. This, despite
23 the fact that Plaintiffs knew that HBO and Jackson had previously partnered on Live
24 in Bucharest. See id. at 9 (acknowledging that HBO “had partnered with Michael
25 to immense success”). Instead, through pointed language that variously impugned
26
12
See also James Bates, Defections, Merger Shake Up Closed World: Hollywood:
27
Breakup of Breslauer, Jacobson, Rutman & Chapman Changes the Status Quo of
28 Managers’ World, Los Angeles Times, Apr. 1, 1994,
https://www.latimes.com/archives/la-xpm-1994-04-01-fi-41138-story.html.
HBO’S SPECIAL MOT. TO STRIKE
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1 HBO, its leadership, its ownership, Mr. Robson, Mr. Safechuck, and the film’s
2 director Dan Reed, Plaintiffs’ counsel pressured HBO to pull the film. When HBO
3 did not capitulate, Plaintiffs very publicly filed their Petition in court, claiming they
4 will seek a speculative but headline-grabbing amount of $100 million in actual and
5 punitive damages, even though at that point the documentary would not debut on
6 HBO for another two weeks. That Plaintiffs apparently found the non-
7 disparagement sentence buried in the 1992 Agreement in the two weeks after
8 sending their February 7 letter does not change the fact that the Agreement had long
9 since expired.13
10 V. CONCLUSION
11 Plaintiffs’ claims fail because they violate the First Amendment, Due Process
12 Clause and public policy, and in any event, the contract on which they are based is
13 inapplicable and expired. California’s Anti-SLAPP law empowers—indeed
14 requires—this Court to put an end to this litigation now. 14 Accordingly, the Court
15 should strike Plaintiffs’ Petition and claims with prejudice, and award attorneys’
16 fees and costs to HBO pursuant to the anti-SLAPP law’s mandatory attorneys’ fees
17 clause for prevailing defendants. 15
18 13
Other contract interpretation maxims confirm the expiration of the non-
19 disparagement sentence. For example, the confidentiality rider that Plaintiffs seek
to enforce was drafted by TTC (or Mr. Jackson’s representatives), not HBO, and
20 therefore any ambiguity regarding the survivability of the non-disparagement
21 sentence should be read against Plaintiffs. See Dkt. 22-1 ¶ 6; Cal. Civ. Code § 1654
(“In cases of uncertainty . . . the language of a contract should be interpreted most
22 strongly against the party who caused the uncertainty to exist.”).
23 14
Because Plaintiffs’ claims must be stricken pursuant to HBO’s Special Motion to
24 Strike, the Court need not rule on Plaintiffs’ pending Motion to Compel, as once the
25 Petition is stricken, there is nothing on which to compel an arbitration.
15
26 Cal. Code. Civ. Proc. § 425.16(c)(1) (“a prevailing defendant on a special
motion to strike shall be entitled to recover his or her attorney’s fees and costs”);
27
U.S. ex rel. Newsham v. Lockheed Missiles Space Co. Inc., 190 F.3d 963, 972–973
28 (9th Cir. 1999) (finding mandatory fees provision of California’s anti-SLAPP law
applicable in federal court).
HBO’S SPECIAL MOT. TO STRIKE
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