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College v. Frye

February 21, 2007

EXCELSIOR COLLEGE, PLAINTIFF,
v.
CHARLES M. FRYE AND PROFESSIONAL DEVELOPMENT SYSTEMS SCHOOL OF HEALTH SCIENCES, A CALIFORNIA CORPORATION, DEFENDANTS.



The opinion of the court was delivered by: Hayes, Judge

ORDER

The matters are pending before the Court are: 1) Plaintiff's Motion to include the Defendant West Haven University, Inc. as a Judgment-Debtor (#377); 2) Plaintiff's Motion to Enter Judgment under Federal Rule of Civil Procedure 54(b) against Defendants West Haven University and Professional Development Systems School of Health Sciences (#391); and 3) Defendants' Objections to Plaintiff's proposed final judgment.

BACKGROUND

On May 5, 2006, this Court granted partial summary judgment in favor of Plaintiff Excelsior College and against Defendant Charles M. Frye and Defendant West Haven University, Inc. as to liability on Counts I, II, and III for copyright infringement of Plaintiff's Nursing Concepts Content Guides. In this same order, the Court found that Defendant West Haven University, Inc. is liable for acts committed by Defendant Charles M. Frye prior to and during the existence of Defendant West Haven University, Inc.

On November 14, 2006, the jury returned a verdict against Defendant Charles M. Frye and Defendant Professional Development Systems School of Health Sciences. The jury found the conduct of Charles M. Frye to be willful on Counts I, II, and III for copyright infringement of the content guides and awarded damages of $150,000.00 against Defendant Charles M. Frye on each count. The jury found in favor of Plaintiff on Count IV copyright infringement of the seven Excelsior College examinations. The jury awarded actual damages on Count IV in the amount of $99,084.00 for each of seven examination against Defendant Charles M. Frye and Defendant Professional Development Systems School of Health Sciences for a total of $693,588.00 in actual damages. The jury further awarded to Plaintiff on Count IV profits gained in the amount of $3,500,481.70 against Defendant Charles M. Frye. The jury found in favor of Plaintiff on Count VI trade secret misappropriation and awarded damages in the amount of $346,794.00 against Defendant Charles M. Frye and in the amount of $346,794.00 against Defendant Professional Development Systems School of Health Sciences; and punitive damages in the amount of $1,082,101.00 against Defendant Charles M. Frye and $1,447,733.00 against Defendant Professional Development Systems School of Health Sciences.

On November 27, 2006, Defendant Charles M. Frye filed a Notice of Chapter 7 Bankruptcy Filing.

On November 28, 2006, Plaintiff moved the Court to include the Defendant West Haven University, Inc. as a judgment debtor in the final judgment. On the same date, pursuant to the direction of the Court, Plaintiff submitted a proposed final judgment resolving all claims against all Defendants. Defendants filed objections to Plaintiff's proposed final judgment and Plaintiff filed a response to the Defendants' objections.

On January 12, 2007, this Court ordered the action stayed only as to Defendant Charles M. Frye until further order of the Court.

On January 19, 2007, Plaintiff moved for a partial judgment pursuant to Rule 54(b) of the Federal Rules of Civil Procedure against Defendant West Haven University and Defendant Professional Development Systems School of Health Sciences.

On February 6, 2007, Defendant Charles M. Frye filed an "Ex Parte Status Notice and Request" informing this Court that a hearing was held in the United States Bankruptcy Court on the Plaintiff's motion to lift the stay and that the Bankruptcy Court indicated that it would lift the stay in order to allow Plaintiff and Defendant Charles M. Frye to proceed in this forum to final judgment. Defendant Charles M. Frye stated "[i]n light of the anticipated lifting of the stay, in the interest of judicial economy and practical consideration for all concerned in that all parties can proceed with post-trial motions, the Court is requested to stay the issuance of an Order relative to PDS and WHU in favor of a single Judgment Order for all Defendants in that the Bankruptcy Court is poised to grant Excelsior's request on February 27, 2007." Doc. No. 392 at 2.

On February 9, 2007, Plaintiff Excelsior filed a response requesting that the Court enter final judgment as to all parties as to all claims.

DISCUSSION

1) Plaintiff's Motion to include the corporate Defendant West Haven University, Inc. as a Judgment-Debtor (#377)

Plaintiff moves the Court to include Defendant West Haven University, Inc. as a judgment debtor in the final judgment as to all claims. Plaintiff requests that this Court "exercise its equitable powers to impose corporate liability for Defendant Frye's actions and include West Haven University, Inc. in the Final Judgment disposing of this action as a judgment-debtor." Plaintiff's Memorandum at 2. Plaintiff relies upon California Civil Procedure ยง 187 which allows the court to use "all means necessary" to carry a judgment into effect. Plaintiff ...


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