Latest 2 Cases: Brown v. Stored Value Cards, Inc. (Constitutional Law), Daniels v. The Walt Disney Co. (Copyright)

Obey the Law

LESLIE C. GRIFFIN

In light of a case currently on the U.S. Supreme Court’s docket for this term, UNLV Boyd School of Law professor Leslie C. Griffin explains the importance of requiring employers and others to obey generally applicable laws not targeting specific religious practices—the result of the Court’s holding in Employment Division v. Smith. Griffin argues that it is hard to imagine a peaceful United States if organizations had a constitutional or statutory right to discriminate against all types of people.

Read More

Brown v. Stored Value Cards, Inc.

Docket: 18-35735

Opinion Date: March 16, 2020

Judge: Ronald Murray Gould

Areas of Law: Constitutional Law, Consumer Law

Plaintiff filed suit against Numi, and its partner CNB, alleging that they violated the Electronic Fund Transfers Act (EFTA), violated the Fifth Amendment Takings Clause, and were liable for conversion and unjust enrichment under Oregon state law. Numi is a for-profit, private company that returns released inmates' money via a prepaid debit card loaded with the balance of their funds. Numi earns revenue by charging fees to the cardholders, rather than the government. The Ninth Circuit held that plaintiff plausibly alleged a claim under section 1693l-1 of the EFTA and the district court erred in dismissing the case for failure to state a claim. The court explained that, because defendants marketed their cards to the general public, section 1693l-1 was applicable. In this case, defendants marketed the card program to municipalities and correctional facilities, and Multnomah County does not give released inmates a choice of whether to accept the cards. Therefore, when defendants marketed the cards to Multnomah County, they indirectly marketed them to these released inmates, and then the inmates reenter the general public. The panel also held that the district court abused its discretion when it denied plaintiff leave to file a third amended complaint; summary judgment was not proper on plaintiff's takings claim; and summary judgment was not proper on plaintiff's state law claims.

Daniels v. The Walt Disney Co.

Docket: 18-55635

Opinion Date: March 16, 2020

Judge: M. Margaret McKeown

Areas of Law: Copyright, Entertainment & Sports Law, Intellectual Property

The Ninth Circuit affirmed the district court's dismissal of plaintiff's action alleging copyright infringement by the Disney movie Inside Out of plaintiffs' characters called The Moodsters. After plaintiff developed The Moodsters, anthropomorphized characters representing human emotions, she pitched to entertainment and toy companies around the country, including The Walt Disney Company. The panel held that, under DC Comics v. Towle, 802 F.3d 1012 (9th Cir. 2015), lightly sketched characters such as The Moodsters, which lack consistent, identifiable character traits and attributes, do not enjoy copyright protection. Furthermore, under Warner Bros. Pictures v. Columbia Broad. Sys., 216 F.2d 945, 950 (9th Cir. 1954), The Moodsters are chessman in the game of telling the story. In this case, the panel applied the alternative "story being told" test and held that The Moodsters as an ensemble are no more copyrightable than the individual characters. Finally, the panel held that the district court did not err in dismissing plaintiff's claim for an implied-in-fact contract where plaintiff was required under California law to do more than plead a boiler-plate allegation, devoid of any relevant details.