T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on and i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T H A J I M E S O R A Y A M A , a n in d iv id u a l, P l ai nt i ff

- A pp el l ee , v. R O B E R T B A N E L T D I N C , aC a lif o rn ia corporat i on ; R O B E R T S . B A N E , an i n d i v i d u a l ; T AME R A B AN E GA L L E R Y, ab u s in e s s o f

u n k n o w n typ e ; E X O T I C A , a bu si ness of un kn ow n type, D efen d an t s - A p p el l an t s. N o. 07- 56487 D . C . N o . C V - 0 5 - 0 1 4 3 1 - F MC ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia F l or e nc e - M a r i e C oope r , D i s tr i c tJ udge , P r e s i di ng A r gue d a nd S ubm i tt e d F e brua ry 3, 2010

P a s a d e n a , C a lif

o rn ia B efo re: S C H R O E D E R , F IS H E R an d N . R . S M IT H , C i rcu i tJu d g es. R ob ertB ane L t d. , Inc. , R ob ertS . B ane, T am er a B ane G al l ery, and E xo t i ca ( c o lle c tiv e ly “B a n e ” ) ap p e a l th e d is tr ic t c o u rt’s ju d g m e n t, f o llo w in g ab e n c h tr ia l, 

# FI LED MA Y28 2 010 M OLLY C. DW Y ER, CLERK U . S. C O U R T OF APPE ALS2

in f a v o ro f p la in tif f H a jim e S o r a y a m a , a n in te rn a tio n a l a rtis t w h o o r ig in a lly c o n tr a c te d w ith B a n e , af in e a rt p u b lis h e r , in 1 9 9 4 . A s aprel i m i narym att er , w e grantthe part i es ’ m ot i on s t o t ake j ud i ci al no t i ce of ba nkrupt c y pr oc e e di ngs i nvol vi ng B a ne , a nd the r e f or e hol d tha tbe c aus e the p e titio n h a s b e e n d is m is s e d , B a n e h a s s ta n d in g to m a in ta in th is ap p e a l. B ane’ s i ni t i al ar gu m enton appeal i s thatthe di stri ctcourtdepri ved de f e nda nt s of

the i rr i ghtt o aj ury tr i a l , r e l y i ng upon ourr e c e ntde c i s i on i n So l is v . C ou nt y of L os A ng eles , 5 1 4 F .3 d 9 4 6 , 9 5 5 ( 9 th C ir . 2 0 0 8 ) . H e r e , h o w e v e r , B a n e is noti n apos i t i on t o c ont e s tthe di s tr i c tc ourt ’ s r e l i a nc e on al oc a l rul e . B a ne di d not o p p o s e th e p la in tif

f’s m o tio n to s tr ik e th e ju ry d e m a n d , o rp r e s e n t a n y au th o r ity to th e d is tr ic t c o u rt c o n te s tin g th e d is tr ic t c o u rt’s ru lin g . N o rd id B a n e p a rtic ip a te in th e len g th y b en ch trial u n d erp ro test o r e v ern o te an y s tan d in g o b jectio n . B an e’s c o n te n tio n th a t h e w a s w r o n g f u lly d e p r iv e d o f

aju ry tr ia l, n o w th a t h e h a s lo s t, h a s b e e n w a iv e d . Se e W h ite v . Mc G in n is , 90 3 F . 2d 69 9, 70 3 (9th C i r. 19 90 ) ( en banc). M ore m er i t ori ou s i s B ane’ s c on t ent i on thatw e s ho ul d rem and for further pr oc e e di ngs w i th r e s pe c tt o puni t i ve da m a ge s . U nde rC a l i f orni al a w , i m pos i t i on of p u n itiv e d a m a g e s r e q u ir e s c o n s id e r a tio n o f th e d e f e n d a n ts ’ n e t w o rth . See R o b ert L . C lo u d & A s s o c s . v . Mike s e ll , 82 C al . R ptr. 2d 14 3, 14 9 (C al . C t . A pp . 19 99 );3

Ke n l y v . U keg a wa , 19 C al . R ptr. 2d 77 1, 77 5– 77 (C al . C t . A pp . 19 93 ). T he di stri ct ju d g e c le a r ly in te n d e d to h o ld ah e a r in g o n p u n itiv e d a m a g e s , b u t d id n o t d o s o . T hi s w a s e rr or . W e the r e f or e m us tva c a t e the a w a r d of puni t i ve da m a ge s a nd r e m a nd f orahe a r i ng t o de t e rm i ne de f e nda nt s ’ ne tw orth. D ef en d an ts fin ally ra ise a se ries o f c h allen g es to th e d istrict co u rt’s com pensat ory dam ages aw ar ds for the t ort s of c on vers i on , brea ch of fi du ci ary duty , a nd i nt e nt i ona l i nt e r f e r e nc e w i th pr os pe c t i ve e c onom i c a dva nt a ge . W e f i nd o n ly tw o in s ta n c e s o f

r e v e r s ib le e rr o r . F i rs t , the di stri ctcourterre d i n aw ar di ng dam ages for i nt ent i on al in te r f e r e n c e w ith p r o s p e c tiv e e c o n o m ic a d v a n ta g e . U n d e rC a lif o rn iala w , to e s tab lis h liab ility f

o rth is to rt, ap la in tif

f m u s t p r o v e th a t th e d e f e n d a n t e n g a g e d in a n “in d e p e n d e n tly w r o n g f u l a c t.” Kor e a Suppl

yC o. v . L oc khe e d M

ar t i n C or p. , 63 P .3 d 9 3 7 , 9 5 3 ( C a l. 2 0 0 3 ) . “[ A ]n a c t is in d e p e n d e n tly w r o n g f u l if it is u n la w f

u l, tha ti s , i f i ti s pr os c r i be d by s om e c ons t i tut i ona l , s t a tut ory , r e gul a t ory , c om m on l aw , or other det erm i nabl e l egal st andard. ” I d. a t 9 5 4 . T h e d is tr ic t c o u rt f a ile d to i de nt i f y a ny l e ga l s t a nda r d tha tB a ne vi ol a t e d w he n i tf ound tha tB a ne r e duc e d the be ne f i tof the ba r ga i n gi ve n t o S or a y a m a . S or a y a m aa r gue s on appe a l tha tB a ne com m i tt ed fr aud-i n-the-i nd ucem ent , bu tsupp l i es no l egal autho ri ty t o sho w that w ha tB a ne di d he r e f

i t s C a l i f orni a ’ s l e ga l de f

i ni t i on of tha ts e pa r a t e t ort . T he4

aw ard fo r i n t en t i o n al i n t erferen ce w i th p ro sp ect i v e eco n o m i c ad v an t ag e m u st th e r e f o r e b e r e v e r s e d . S e c ond, the di s tr i c tc ourte rr e d i n a w a r di ng da m a ge s f orboth br e a c h of c o n tr a c ta n d th e t o rt s o f c o n v e r s i o n a n d b r e a c h o f f i d u c i a ry d u ty . A l l th r e e c l a i ms re st ed on B ane’ s c ou rs e of c on du ctsurr ou nd i ng 33 ori gi nal pai nt i ng s that S or a y a m aha d gi ve n t o B a ne t o s e l l on c ons i gnm e ntunde rthe t e rm s of the i r1999 agre em ent . B ane i s c orre cti n ass ert i ng thatby aw ar di ng dam ages for both b re ac h o f c o n tr a c t a n d to rt th e o r ie s th e ju d g m e n t c o n ta in s th e p o te n tia l f o rd o u b le r e c o v e ry , a s S o r a y a m ais n o t e n title d to r e c o v e rtw ic e f o rth e s a m e h a rm . See R o g e rs v . D a v is , 34 C al . R ptr. 2d 71 6, 71 9 (C al . C t . A pp . 19 94 ) ( pl ai nt i ff m ay re qu es tal t ernat i ve re m edi es , “ bu tm ayno tbe aw ar ded b oth t o the ext entsuch an a w a r d w oul d c ons t i tut e adoubl e r e c ove ry ” ) . W e the r e f or e va c a t e the a w a r ds f

or br e a c h of

c ontr a c t , c onve r s i on, a nd br e a c h of f i duc i a ry duty , a nd r e m a nd f orthe di stri ctcourtt o adj ustthe aw ar ds t o the ext entthatS oray am a’ s t ortand con tra ct reco v eri es m ay b e d u p l i cat i v e. T h e d i stri ctco u rt ’ s aw ard s o f d am ag es o n th ese th r e e c la im s a r e n o t o th e rw is e c le a r ly e rr o n e o u s . A cco rd i n g l y, w e th erefo re rev erse an d rem an d fo r th e d i stri ctco u rtt o ad j u st th e a w a r d s o f

p u n itiv e a n d c o m p e n s a to ry d a m a g e s in a c c o r d a n c e w ith th is di s pos i t i on. T he j udgm e nti s othe rw i s e a f f i rm e d.5

R EVER SED in p a rt, A FFI R M ED i n pa rt , a nd R EM A N D ED . T h e p a rtie s s h a ll b e a rth e iro w n c o s ts .