cesar rodriguez ramirez - complaint.pdf

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 GIBSON & TREU LLP 7495 West Azure Drive, Suite 233 Las Vegas, Nevada 89130 Main (702) 541-7888 • Fax (702) 541-7899 STEVEN A. GIBSON, ESQ. Nevada Bar No. 6656 [email protected] JODI DONETTA LOWRY, ESQ. Nevada Bar No. 7798 [email protected] GIBSON & TREU LLP 7495 West Azure Drive, Suite 233 Las Vegas, Nevada 89130 Telephone 702.541.7888 Facsimile 702.541.7899 Attorneys for Plaintiff UNITED STATES DISTRICT COURT DISTRICT OF NEVADA CESAR RODRIGUEZ RAMIREZ, an individual, Plaintiff, v. NUEVO ORDEN MUSIC LLC, a California limited liability company; NUEVO ORDEN MUSIC, a California general partnership; MARTHA FRAILE, an individual; JOSÉ DAVID HERNANDEZ, an individual; ENRIQUE NARANJO, an individual; and DANIEL FERNANDEZ, an individual, Defendants. Case No.: 2:15-cv-2472 COMPLAINT (JURY TRIAL REQUESTED) Plaintiff Cesar Rodriguez Ramirez (“Plaintiff” or “Mr. Rodriguez”), by and through its counsel, GIBSON & TREU LLP, complains and alleges as follows against Defendants Nuevo Orden Music LLC (“NOM LLC”), Nuevo Orden Music (“NOM Partnership”), Martha Fraile (“Ms. Fraile”), José David Hernandez (“Mr. Hernandez”), Enrique Naranjo (“Mr. Naranjo”), and Daniel Fernandez (“Mr. Fernandez”) (collectively known herein as the “Defendants”), on information and belief, that the following are and have been true at all times relevant to this lawsuit unless otherwise indicated specifically to the contrary: Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 1 of 27

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Page 1: Cesar Rodriguez Ramirez - complaint.pdf

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STEVEN A. GIBSON, ESQ.

Nevada Bar No. 6656

[email protected]

JODI DONETTA LOWRY, ESQ.

Nevada Bar No. 7798

[email protected]

GIBSON & TREU LLP 7495 West Azure Drive, Suite 233

Las Vegas, Nevada 89130 Telephone 702.541.7888 Facsimile 702.541.7899

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT

DISTRICT OF NEVADA

CESAR RODRIGUEZ RAMIREZ, an individual,

Plaintiff,

v. NUEVO ORDEN MUSIC LLC, a California limited liability company; NUEVO ORDEN MUSIC, a California general partnership; MARTHA FRAILE, an individual; JOSÉ DAVID HERNANDEZ, an individual; ENRIQUE NARANJO, an individual; and DANIEL FERNANDEZ, an individual,

Defendants.

Case No.: 2:15-cv-2472

COMPLAINT

(JURY TRIAL REQUESTED)

Plaintiff Cesar Rodriguez Ramirez (“Plaintiff” or “Mr. Rodriguez”), by and

through its counsel, GIBSON & TREU LLP, complains and alleges as follows against

Defendants Nuevo Orden Music LLC (“NOM LLC”), Nuevo Orden Music (“NOM

Partnership”), Martha Fraile (“Ms. Fraile”), José David Hernandez (“Mr.

Hernandez”), Enrique Naranjo (“Mr. Naranjo”), and Daniel Fernandez (“Mr.

Fernandez”) (collectively known herein as the “Defendants”), on information and

belief, that the following are and have been true at all times relevant to this lawsuit

unless otherwise indicated specifically to the contrary:

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 1 of 27

Page 2: Cesar Rodriguez Ramirez - complaint.pdf

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NATURE OF ACTION

1. This is an action brought under this Court’s original jurisdiction for

declaratory judgment of copyright and trademark ownership by Plaintiff Cesar

Rodriguez Ramirez (“Mr. Rodriguez”), and under this Court’s supplemental

jurisdiction for breach of contract under California law against Nuevo Orden Music,

a California general partnership (“NOM Partnership”), by and through its partners

Martha Fraile (“Ms. Fraile”), José David Hernandez (“Mr. Hernandez”), Enrique

Naranjo (“Mr. Naranjo”), and Daniel Fernandez (“Mr. Fernandez”); breach of the

covenant of good faith and fair dealing under California law by NOM Partnership;

fraudulent inducement under Nevada law by NOM Partnership; breach of contract

under California law against Nuevo Orden Music LLC, a California limited liability

company (“NOM LLC”); breach of the covenant of good faith and fair dealing under

California law by NOM LLC; fraudulent presentment under Nevada law by NOM

LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez; and unjust enrichment under

Nevada law of all Defendants.

2. This Court additionally has diversity jurisdiction over this entire

matter, because Mr. Rodriguez is a resident of Nevada and all Defendants are

residents of either California or Mexico.

PARTIES

3. Mr. Rodriguez is an individual domiciled in Nevada.

4. NOM Partnership is a general partnership with its principal place of

business in California.

5. Ms. Fraile is a general partner in NOM Partnership.

6. Ms. Fraile is an individual domiciled in California.

7. Mr. Hernandez is a general partner in NOM Partnership.

8. Mr. Hernandez is an individual domiciled in California.

9. Mr. Naranjo is a general partner in NOM Partnership.

10. Mr. Naranjo is an individual domiciled in Mexico.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 2 of 27

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11. Mr. Fernandez is a general partner in NOM Partnership.

12. Mr. Fernandez is an individual domiciled in Mexico.

13. NOM LLC is a California limited liability company.

SUBJECT-MATTER JURISDICTION

14. This Court has subject-matter jurisdiction over this action under 28

U.S.C. § 1338(a), because Plaintiff’s First Cause of Action is dependent on this

Court’s interpretation of the Copyright Act, and Plaintiff’s Second Cause of Action is

dependent on this Court’s interpretation of the Lanham Act, and Plaintiff’s other

claims for relief are so related to such claims that they form part of the same case or

controversy under Article III of the United States Constitution and are thus

encompassed within this Court’s supplemental jurisdiction pursuant to 28 U.S.C. §

1367.

15. This Court has subject-matter jurisdiction over this action under 28

U.S.C. § 1332(a)(1), because Plaintiff is a citizen of Nevada and Defendants

(including the general partners of NOM Partnership) are residents of other states

and countries, and the amount in controversy in this action exceeds $75,000.

PERSONAL JURISDICTION

16. This Court has personal jurisdiction over NOM Partnership, and thus

NOM Partnership’s general partners individually, because NOM Partnership

fraudulently solicited Mr. Rodriguez, a Nevada citizen, to enter into a contract with

NOM Partnership, through in-person communications taking place in Nevada and

electronic communications directed to Mr. Rodriguez in Nevada.

17. This Court has personal jurisdiction over NOM Partnership, and thus

NOM Partnership’s general partners individually, because NOM Partnership’s

general partners Ms. Fraile and Mr. Hernandez negotiated two of the contracts at

issue in this matter with Mr. Rodriguez, a Nevada citizen, while Ms. Fraile and Mr.

Hernandez were physically present in the State of Nevada.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 3 of 27

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18. This Court has personal jurisdiction over NOM Partnership because

Defendant NOM Partnership entered or attempted to enter into a contract intended

to reach out beyond the state in which NOM Partnership had its principal place of

business and create a continuing relationship and obligation with Mr. Rodriguez, a

Nevada citizen.

19. This Court has personal jurisdiction over NOM LLC because

Defendant NOM LLC entered or attempted to enter into a contract intended to

reach out beyond NOM LLC’s state of organization and create a continuing

relationship and obligation with Mr. Rodriguez, a Nevada citizen.

20. This Court has personal jurisdiction over NOM Partnership and NOM

LLC because NOM Partnership and NOM LLC claim ownership of copyrights and a

mark that NOM Partnership and NOM LLC knew were owned by a Nevada

resident.

VENUE

21. Venue is proper in this Court under 28 U.S.C. § 1391(b)(2), because a

substantial part of the events giving rise to the claims set forth herein occurred in

the District of Nevada.

GENERAL ALLEGATIONS

22. Mr. Rodriguez is a professional musician who performs in the genre of

popular Spanish-language music.

23. No later than June 7, 2014, Mr. Hernandez, Ms. Fraile, Mr. Naranjo,

and Mr. Fernandez, without limitation, were associated with one another to carry on

as co-owners a business for profit under the trade name NUEVO ORDEN MUSIC.

24. On or about April 9, 2014, Mr. Rodriguez met Mr. Hernandez in Las

Vegas, Nevada, where Mr. Hernandez represented to Mr. Rodriguez that Mr.

Hernandez was a music professional with extensive experience and professional

contacts in the popular Spanish-language music industry who led a team for

purposes of music production and promotion.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 4 of 27

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25. In the time period between April 9, 2014 and June 7, 2014 (the

“Inducement Period”), Mr. Hernandez represented to Mr. Rodriguez almost daily,

via telephonic and electronic communications, as follows: (a) that Mr. Hernandez

was in the process of creating a record label with full production and promotional

capabilities from which Mr. Rodriguez could benefit, (b) that Mr. Hernandez and

others, including without limitation Ms. Fraile, Mr. Naranjo, and Mr. Fernandez

(collectively the “Relevant Professionals”) had the experience, knowledge, and

professional contacts in the popular Spanish-language music industry, in (at a

minimum) the United States and in Mexico, to obtain significant professional

exposure, performance bookings, and record sales for Mr. Rodriguez, and (c) that if

Mr. Rodriguez signed an exclusive contract with Mr. Hernandez’s to-be-formed

record label, the Relevant Professionals, who would be actively involved in

promoting Mr. Rodriguez’s performances and music would remain so involved for

the duration of any such exclusive contract (the “Inducement Period

Misrepresentations”).

26. On or about May 15, 2015, Mr. Rodriguez met Ms. Fraile in person in

Las Vegas, Nevada (the “May 15 Las Vegas Meeting”).

27. During the May 15 Las Vegas Meeting, Ms. Fraile represented to Mr.

Rodriguez that the Relevant Professionals had the experience, knowledge, and

professional contacts in the popular Spanish-language music industry, in (at a

minimum) the United States and Mexico, to obtain significant professional

exposure, performance bookings, and record sales for Mr. Rodriguez (the “May 15

Misrepresentations”).

28. On June 7, 2014, at the request of Mr. Hernandez and Ms. Fraile, Mr.

Rodriguez traveled from Las Vegas to Riverside, California, where Mr. Rodriguez

met in person with the Relevant Professionals at Mr. Hernandez’s, Ms. Fraile’s, Mr.

Naranjo’s, and Mr. Fernandez’s invitation (the “June 7 Riverside Meeting”).

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29. During the June 7 Riverside Meeting, Mr. Hernandez, Ms. Fraile, Mr.

Naranjo, and Mr. Fernandez represented to Mr. Rodriguez that the Relevant

Professionals, who would be working under the auspices of an entity to be doing

business as Nuevo Orden Music, (a) had the experience, knowledge, and

professional contacts in the popular Spanish-language music industry, in the

United States and Mexico at a minimum, to obtain significant professional

exposure, performance bookings, and record sales for Mr. Rodriguez, and (b) would

remain actively involved with promotion of Mr. Rodriguez’s performances and music

for the duration of any exclusive contract Mr. Rodriguez signed with the entity to be

doing business as Nuevo Orden Music (the “June 7 Capability Misrepresentations”).

30. During the June 7 Riverside Meeting, Mr. Hernandez, Ms. Fraile, Mr.

Naranjo, and Mr. Fernandez represented to Mr. Rodriguez that if Mr. Rodriguez

entered into an exclusive recording contract with the recording label owned and

operated by Mr. Hernandez, Ms. Fraile, Mr. Naranjo, and Mr. Fernandez, the

Relevant Professionals would, jointly and severally, make best efforts to ensure that

Mr. Rodriguez obtained significant professional exposure, performance bookings,

and record sales for Mr. Rodriguez (the “June 7 Best Efforts Misrepresentations”;

collectively with the June 7 Capability Misrepresentations, the “June 7

Misrepresentations”).

31. During the June 7 Riverside Meeting, in reliance on the Inducement

Misrepresentations, the May 15 Misrepresentations, and the June 7

Misrepresentations, Mr. Rodriguez entered into an “Artist-Agent Agreement”

(attached hereto as Exhibit 1) with NOM Partnership, by and through NOM

Partnership’s general partners Mr. Hernandez and Ms. Fraile.

32. Among the provisions of the Artist-Agent Agreement, in the

unnumbered section entitled “Agency” (page 1), is the following (the “Best Efforts

Covenant”):

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Page 7: Cesar Rodriguez Ramirez - complaint.pdf

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The Agent agrees to use his or her best efforts in

submitting the Artist’s work for purpose of securing

assignments, sales and shows for the Artist. The

Agent shall negotiate the terms of any assignment,

sale or booking that is offered, but the Artist shall

have the right to reject any assignment if the Artist

finds the terms thereof unacceptable only in the

case a valid reason is determined.

33. During the June 7 Riverside Meeting, in reliance on the Inducement

Misrepresentations, the May 15 Misrepresentations, and the June 7

Misrepresentations, Mr. Rodriguez entered into a “Recording Contract” (the “June

Recording Contract,” attached hereto as Exhibit 2) on which the other contracting

party is identified as “NUEVO ORDEN MUSIC (herein the Company)” (page 1).

34. As of June 7, 2014, NOM LLC had not been formed.

35. The June Recording Contract binds Mr. Rodriguez for seven years to

record exclusively on NOM Partnership’s label, absent NOM Partnership’s

permission.

36. The June Recording Contract requires the making of at least 14

master recordings in seven years, including, at least once per year, “one master

recording of at least between 45 minutes and 120 minutes. minutes duration” [sic].

37. The June Recording Contract provides that NOM Partnership shall be:

… the sole owner and will have perpetual use and

control of all masters and CDs, tapes, and other

audio or visual recording produced under this

Agreement.

38. The June Recording Contract does not contain the word “copyright.”

39. The June Recording Contract provides that Mr. Rodriguez:

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will permit the use of CESAR RODIGUEZ’s [sic]

likeness or other identifying characteristics by

NUEVO ORDEN MUSIC for the promotion of sales

of records produced under this Agreement. During

the term of this Agreement, NUEVO ORDEN

MUSIC will have the sole right to the use of

CESAR RODIGUEZ’s name, voice, likeness, sound,

Visual [capitalization sic] and similar

characteristics for the purpose of advertising,

promoting, selling, and otherwise merchandising

CDs, tapes, and other audio, Visual recordings [all

sic] from the masters produced by CESAR

RODIGUEZ under the terms of this Agreement.

40. The June Recording Contract does not contain the words “trademark,”

“service mark,” or “assignment.”

41. On or about August 26, 2014, NOM LLC filed an application with the

United States Patent and Trademark Office for registration of the mark CESAR

RODRIGUEZ Y SU BANDA MIX (the “Mark”).

42. In August and September 2014, Mr. Hernandez, Ms. Fraile, Mr.

Naranjo, Mr. Fernandez, and NOM LLC made arrangements for Mr. Rodriguez to

go on a promotional tour in Mexico (the “Mexico Tour”).

43. In reliance on representations made by Mr. Hernandez, Ms. Fraile, Mr.

Naranjo, and Mr. Fernandez regarding the promotional support that would be

provided to Mr. Rodriguez on the Mexico Tour, and in acceding to the express

request of Mr. Hernandez, Mr. Rodriguez resigned from Mr. Rodriguez’s job in Las

Vegas, Nevada in order to be able to travel for several weeks on the Mexico Tour.

44. While Mr. Rodriguez was on the Mexico Tour, Mr. Rodriguez stayed at

the home of Mr. Fernandez in Tonala, Jalisco, Mexico.

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45. While Mr. Rodriguez was on the Mexico Tour, Mr. Hernandez, Ms.

Fraile, and Mr. Fernandez asked Mr. Rodriguez, over the course of multiple

teleconferences conducted via the WhatsApp telemessaging service, during the last

week of August 2014 and the first week of September 2014 (the “Calls To Mexico”),

to sign a new proposed contract (the “New Proposed Contract”) with NOM LLC.

46. During the Calls To Mexico, Mr. Hernandez, Ms. Fraile, and Mr.

Fernandez represented that the purpose of the New Proposed Contract would be to

decrease the number of master recordings over seven years from fourteen, as

required in the June Recording Contract, to seven.

47. During the Calls To Mexico, Mr. Hernandez, Ms. Fraile, and Mr.

Fernandez represented that the New Proposed Contract contained a provision

mandating a payment of $2 million from any other record label with whom Mr.

Rodriguez signed during the term of the New Proposed Contract.

48. During the time period of the Calls To Mexico, Mr. Rodriguez was

outside the United States and had no opportunity to consult with counsel or

independent business advisors regarding the New Proposed Contract.

49. During the time period of the Calls To Mexico, Mr. Rodriguez was so

concerned about the low attendance and lack of revenue generated to date by the

Mexico Tour that Mr. Rodriguez feared that NOM LLC would not have funds to

ensure Mr. Rodriguez was able to return to the United States.

50. During the Calls To Mexico, Mr. Hernandez, Ms. Fraile, and Mr.

Fernandez represented that time was of the essence for Mr. Rodriguez to sign the

New Proposed Contract and that Mr. Rodriguez could not wait to sign the New

Proposed Contract until after Mr. Rodriguez had returned to the United States from

the Mexico Tour.

51. On or about September 3, 2014, via teleconference conducted through

WhatsApp from Tonala, Jalisco, Mexico, Mr. Rodriguez agreed to sign the New

Proposed Contract.

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52. On or about September 3, 2014, an unknown person at NOM LLC sent

Mr. Rodriguez a document written in Spanish and entitled “Contrato y Acuerdo de

grabación” (capitalization sic; the “September Contract,” attached hereto as Exhibit

3; uncertified English translation attached hereto as Exhibit 4), via facsimile

transmission to Tonala, Jalisco, Mexico.

53. On or about September 3, 2015, Mr. Fernandez delivered the

September Contract to Mr. Rodriguez and, after Mr. Rodriguez had signed the

September Contract, returned the signed September Contract to Ms. Fraile and Mr.

Hernandez via facsimile.

54. On or about September 3, 2014, Mr. Rodriguez relied on the

representations of Mr. Hernandez, Ms. Fraile, and Mr. Fernandez regarding the

difference between the June Recording Contract and the September Contract and

signed the September Contract.

55. In fact, the September Contract does not change Mr. Rodriguez’ or

NOM Partnership’s recording obligation from fourteen master recordings over seven

years to seven master recordings over seven years.

56. In fact, the September Contract provides that if Mr. Rodriguez violates

the September Contract in any way, Mr. Rodriguez himself must pay NOM LLC

liquidated damages of at least two million dollars (the “Misrepresented Liquidated

Damages Provision”).

57. The September Contract’s terms regarding ownership of master

recordings are not materially different from those set forth in the June Recording

Contract.

58. The September Contract does not contain the Spanish phrases

“derechos de autor” (“rights of the author”), “propriedad literaria” (“literary

property”), “propriedad artistica” (“artistic property”), or any other Spanish word or

phrase that approximates the English word “copyright.”

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59. The September Contract’s terms regarding use of Mr. Rodriguez’s

name and likeness are not materially different from those set forth in the June

Recording Contract.

60. The September Contract does not contain the Spanish word “marca”

(“trademark”) or any other Spanish word or phrase that approximates the English

word “trademark” or phrase “service mark.”

61. The Mexico Tour was a money-losing endeavor for Mr. Rodriguez.

62. Mr. Rodriguez gained no income from participating in the Mexico Tour.

63. Mr. Rodriguez actually had to provide his own funds in support of the

Mexico Tour.

64. On or about September 22, 2015, the United States Patent and

Trademark Office issued registration on the Principal Register of Trademarks to

NOM LLC for the Mark in International Class 9 with respect to “Digital materials,

namely, cds, dvds, downloadable music featuring Regional Mexican music” (all

capitalization sic), and in International Class 41 with respect to “Entertainment in

the nature of live performances by a musical band.”

65. The registration issued by the United States Patent and Trademark

Office with respect to the Mark reflects a date of first use of January 1, 2014 with

respect to all scopes of use recited in that registration.

66. On or about August 4, 2015 and on or about September 10, 2015, Mr.

Rodriguez, through counsel, demanded the transfer to Mr. Rodriguez from NOM

LLC of all right, title, and interest to Mr. Rodriguez’s copyrights and to the Mark.

67. On or about September 23, 2015, NOM LLC, through counsel, refused

to transfer Mr. Rodriguez’s right, title, and interest to Mr. Rodriguez’s copyrights

and to the Mark without significant extracontractual payments.

68. In the eighteen months following Mr. Rodriguez’ entry into the Artist-

Agent Agreement and the June Recording Contract, none of the Defendants ever

effectuated Mr. Rodriguez’ recording of a master recording between 45 and 120

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minutes long, as required by the June Recording Contract and the September

Contract.

69. In the eighteen months following Mr. Rodriguez’ entry into the Artist-

Agent Agreement and the June Recording Contract, many of the Relevant

Professionals, including without limitation Ms. Fraile, Mr. Naranjo, and Mr.

Fernandez (the “Departing Relevant Professionals”), ceased to be actively involved

with NOM Partnership and NOM LLC, in contravention of the Inducement Period

Misrepresentations and the June 7 Capability Misrepresentations.

70. The Departing Relevant Professionals ceased to be actively involved

with NOM Partnership and NOM LLC because of Mr. Hernandez’s mismanagement

of NOM Partnership and NOM LLC.

71. In the eighteen months following Mr. Rodriguez’ entry into the Artist-

Agent Agreement and the June Recording Contract, Mr. Rodriguez has not obtained

meaningful professional exposure, performance bookings, or record sales.

72. Mr. Rodriguez has not obtained meaningful professional exposure,

performance bookings, or record sales, at least in part, because of the cessation of

active involvement of the Departing Relevant Professionals with NOM Partnership

and NOM LLC.

73. Mr. Rodriguez has not obtained meaningful professional exposure,

performance bookings, or record sales, at least in part, because of Mr. Hernandez’

mismanagement and undercapitalization of NOM Partnership and NOM LLC.

74. Mr. Rodriguez has not obtained meaningful professional exposure,

performance bookings, or record sales, at least in part, because of the Relevant

Professionals’ inappropriate marketing of Mr. Rodriguez as a “Regional Mexican”

musician only.

75. Mr. Rodriguez has not obtained meaningful professional exposure,

performance bookings, or record sales, at least in part, because the exclusivity

clauses contained within the Artist-Agent Agreement, the June Recording Contract,

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 12 of 27

Page 13: Cesar Rodriguez Ramirez - complaint.pdf

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and the September Contract prevent Mr. Rodriguez from being able to engage in

Mr. Rodriguez’s own marketing efforts or to engage new, competent marketing

representation.

76. All Defendants gained a benefit from being able to claim that Mr.

Rodriguez was under contract with the record label owned and operated by NOM

Partnership and NOM LLC, because the enhancement of Defendants’ reputations

and portfolios provided a professional benefit to Defendants and allowed

Defendants to recruit more clients.

FIRST CLAIM FOR RELIEF

DECLARATORY JUDGMENT REGARDING MR. RODRIGUEZ’S

OWNERSHIP OF COPYRIGHTS UNDER FEDERAL LAW

(AGAINST NOM PARTNERSHIP AND NOM LLC)

77. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

78. NOM Partnership maintains that the June Recording Contract

transfers copyrights from Mr. Rodriguez to NOM Partnership.

79. NOM LLC maintains that the September Contract transfers

copyrights from Mr. Rodriguez to NOM LLC.

80. The language of the June Recording Contract does not comply with the

requirements of 17 U.S.C. § 204 regarding effectuation of copyright transfers.

81. The language of the September Contract does not comply with the

requirements of 17 U.S.C. § 204 regarding effectuation of copyright transfers.

82. The ownership of copyrights under the terms of the June Recording

Contract presents a case or controversy with respect to which this Court may enter

declaratory judgment.

83. The ownership of copyrights under the terms of the September

Contract presents a case or controversy with respect to which this Court may enter

declaratory judgment pursuant to 28 U.S.C. § 2201.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 13 of 27

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84. Mr. Rodriguez requests an order of this Court declaring that all

copyrights to which the June Recording Contract and/or the September Contract

purport to transfer title to any of the Defendants are actually the property of Mr.

Rodriguez, with title owned by Mr. Rodriguez.

SECOND CLAIM FOR RELIEF

DECLARATORY JUDGMENT REGARDING MR. RODRIGUEZ’S

OWNERSHIP OF MARKS UNDER FEDERAL LAW

(AGAINST NOM PARTNERSHIP AND NOM LLC)

85. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

86. At least as early as January 1, 2014, Mr. Rodriguez provided goods and

services under the Mark.

87. The June Recording Contract contains no provision assigning the Mark

to NOM Partnership.

88. The June Recording Contract contains no provision transferring

ownership of the Mark to NOM Partnership.

89. The June Recording Contract contains no provision assigning or

otherwise transferring goodwill associated with the Mark to NOM Partnership.

90. The June Recording Contract does not contain or constitute a written

assignment or other transfer of the Mark as required by 15 U.S.C. § 1060.

91. The June Recording Contract does not establish any ownership

interest on the part of NOM Partnership in the Mark.

92. The September Contract contains no provision assigning the Mark to

NOM LLC.

93. The September Contract contains no provision transferring ownership

of the Mark to NOM LLC.

94. The September Contract contains no provision assigning or otherwise

transferring goodwill associated with the Mark to NOM LLC.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 14 of 27

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95. The September Contract does not contain or constitute a written

assignment or other transfer of the Mark as required by 15 U.S.C. § 1060.

96. The September Contract does not establish any ownership interest on

the part of NOM LLC in the Mark.

97. NOM LLC maintains that NOM LLC is the rightful owner of the Mark.

98. The ownership of the Mark presents a case or controversy with respect

to which this Court may enter declaratory judgment pursuant to 28 U.S.C. § 2201.

99. Mr. Rodriguez requests an order of this Court declaring that Mr.

Rodriguez is the sole owner of the Mark, with title owned by Mr. Rodriguez.

100. Mr. Rodriguez requests an order of this Court certifying to the Director

of the United States Patent and Trademark Office pursuant to 15 U.S.C. § 1119

that the Principal Register of Trademarks should be rectified to reflect Mr.

Rodriguez’s sole ownership of the Mark.

THIRD CLAIM FOR RELIEF

BREACH OF CONTRACT (ARTIST-AGENT AGREEMENT) UNDER

CALIFORNIA LAW

(AGAINST NOM PARTNERSHIP)

101. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

102. The Artist-Agent Contract embodied a bilateral offer and acceptance

by Mr. Rodriguez and by NOM Partnership.

103. The Artist-Agent Contract reflected a transaction of bilateral

consideration whereby Mr. Rodriguez was exclusively obligated to use NOM

Partnership’s services to market, sell, and distribute Mr. Rodriguez’s artistic works

and to pay NOM Partnership, ostensibly by and through Ms. Fraile and Mr.

Hernandez, a commission based on such activities.

104. The Artist-Agent Contract reflected a transaction of bilateral

consideration.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 15 of 27

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105. Mr. Rodriguez has performed all of Mr. Rodriguez’s obligations with

respect to the Artist-Agent Agreement.

106. NOM Partnership failed to meet the requirements of the Best Efforts

Covenant as required by the Artist-Agent Agreement.

107. NOM Partnership thus breached the Artist-Agent Agreement.

108. Mr. Rodriguez did not excuse NOM Partnership from meeting the

requirements of the Best Efforts Covenant.

109. No condition was unsatisfied that excused NOM Partnership from

meeting the requirements of the Best Efforts Covenant.

110. The Artist-Agent Agreement was for a lawful purpose.

111. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM Partnership’s breach of the Artist-Agent Agreement.

FOURTH CLAIM FOR RELIEF

BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING

(ARTIST-AGENT AGREEMENT) UNDER CALIFORNIA LAW

(AGAINST NOM PARTNERSHIP)

112. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

113. NOM Partnership had the obligation under the Artist-Agent

Agreement to do nothing that would injure Mr. Rodriguez’s right to receive the

benefits of the Artist-Agent Agreement.

114. NOM Partnership’s acts and omissions injured Mr. Rodriguez’s right to

receive the benefits of the Artist-Agent Agreement.

115. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM Partnership’s breach of the covenant of good faith and fair

dealing implied in the Artist-Agent Agreement.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 16 of 27

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FIFTH CLAIM FOR RELIEF

FRAUDULENT INDUCEMENT (ARTIST-AGENT AGREEMENT) UNDER

NEVADA LAW

(AGAINST NOM PARTNERSHIP, MS. FRAILE, MR. HERNANDEZ,

MR. NARANJO, AND MR. FERNANDEZ)

116. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

117. NOM Partnership, by and through Ms. Fraile, Mr. Hernandez, Mr.

Naranjo, and Mr. Fernandez, made false representations to Mr. Rodriguez in the

course of inducing Mr. Rodriguez to enter into the Artist-Agent Agreement,

including, without limitation, the June 7 Misrepresentations.

118. NOM Partnership, by and through Ms. Fraile, made false

representations to Mr. Rodriguez in the course of inducing Mr. Rodriguez to enter

into the Artist-Agent Agreement, including, without limitation, the May 15

Misrepresentations.

119. NOM Partnership, by and through Mr. Hernandez, made false

representations to Mr. Rodriguez in the course of inducing Mr. Rodriguez to enter

into the Artist-Agent Agreement, including, without limitation, the Inducement

Period Misrepresentations.

120. NOM Partnership, by and through Ms. Fraile, Mr. Hernandez, Mr.

Naranjo, and Mr. Fernandez, knew that Ms. Fraile and Mr. Hernandez had an

insufficient basis for making the June 7 Misrepresentations.

121. NOM Partnership, by and through Ms. Fraile, knew that Ms. Fraile

had an insufficient basis for making the May 15 Misrepresentations.

122. NOM Partnership, by and through Mr. Hernandez, knew that Mr.

Hernandez had an insufficient basis for making the Inducement Period

Misrepresentations.

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 17 of 27

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123. NOM Partnership, by and through Ms. Fraile, Mr. Hernandez, Mr.

Naranjo, and Mr. Fernandez, made the June 7 Misrepresentations with the

intention to therewith induce Mr. Rodriguez to consent to the formation of the

Artist-Agent Agreement.

124. NOM Partnership, by and through Ms. Fraile, made the May 15

Misrepresentations with the intention to therewith induce Mr. Rodriguez to consent

to the formation of the Artist-Agent Agreement.

125. NOM Partnership, by and through Mr. Hernandez, made the

Inducement Period Misrepresentations with the intention to therewith induce Mr.

Rodriguez to consent to the formation of the Artist-Agent Agreement.

126. Mr. Rodriguez justifiably relied on the June 7 Misrepresentations in

deciding to enter into the Artist-Agent Agreement.

127. Mr. Rodriguez justifiably relied on the May 15 Misrepresentations in

deciding to enter into the Artist-Agent Agreement.

128. Mr. Rodriguez justifiably relied on the Inducement Period

Misrepresentations in deciding to enter into the Artist-Agent Agreement.

129. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the June 7 Misrepresentations.

130. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the May 15 Misrepresentations.

131. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the Inducement Period Misrepresentations.

SIXTH CLAIM FOR RELIEF

BREACH OF CONTRACT (JUNE RECORDING CONTRACT) UNDER

CALIFORNIA LAW

(AGAINST NOM PARTNERSHIP)

132. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

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133. The June Recording Contract embodied a bilateral offer and

acceptance by Mr. Rodriguez and by NOM Partnership.

134. The June Recording Contract reflected a transaction of bilateral

consideration.

135. Mr. Rodriguez has performed or attempted to perform all of Mr.

Rodriguez’ obligations with respect to the June Recording Contract.

136. NOM Partnership failed to meet NOM Partnership’s obligations under

the June Recording Contract.

137. NOM Partnership thus breached the June Recording Contract.

138. Mr. Rodriguez did not excuse NOM Partnership from meeting the

requirements of the June Recording Contract.

139. No condition was unsatisfied that excused NOM Partnership from

meeting the requirements of the June Recording Contract.

140. The June Recording Contract was for a lawful purpose.

141. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM Partnership’s breach of the June Recording Contract.

SEVENTH CLAIM FOR RELIEF

BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING

(JUNE RECORDING CONTRACT) UNDER CALIFORNIA LAW

(AGAINST NOM PARTNERSHIP)

142. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

143. NOM Partnership had the obligation under the June Recording

Contract to do nothing that would injure Mr. Rodriguez’s right to receive the

benefits of the June Recording Contract.

144. NOM Partnership’s acts and omissions injured Mr. Rodriguez’s right to

receive the benefits of the June Recording Contract.

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145. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM Partnership’s breach of the covenant of good faith and fair

dealing implied in the June Recording Contract.

EIGHTH CLAIM FOR RELIEF

FRAUDULENT INDUCEMENT (JUNE RECORDING CONTRACT) UNDER

NEVADA LAW

(AGAINST NOM PARTNERSHIP, MS. FRAILE, MR. HERNANDEZ,

MR. NARANJO, AND MR. FERNANDEZ)

146. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

147. NOM Partnership, by and through Ms. Fraile, Mr. Hernandez, Mr.

Naranjo, and Mr. Fernandez, made false representations to Mr. Rodriguez in the

course of inducing Mr. Rodriguez to enter into the June Recording Contract,

including, without limitation, the June 7 Misrepresentations.

148. NOM Partnership, by and through Ms. Fraile, made false

representations to Mr. Rodriguez in the course of inducing Mr. Rodriguez to enter

into the June Recording Contract, including, without limitation, the May 15

Misrepresentations.

149. NOM Partnership, by and through Mr. Hernandez, made false

representations to Mr. Rodriguez in the course of inducing Mr. Rodriguez to enter

into the June Recording Contract, including, without limitation, the Inducement

Period Misrepresentations.

150. NOM Partnership knew that Ms. Fraile, Mr. Hernandez, Mr. Naranjo,

and Mr. Fernandez had an insufficient basis for making the June 7

Misrepresentations.

151. NOM Partnership knew that Ms. Fraile had an insufficient basis for

making the May 15 Misrepresentations.

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152. NOM Partnership knew that Mr. Hernandez had an insufficient basis

for making the Inducement Period Misrepresentations.

153. NOM Partnership, by and through Ms. Fraile, Mr. Hernandez, Mr.

Naranjo, and Mr. Fernandez, made the June 7 Misrepresentations with the

intention to therewith induce Mr. Rodriguez to consent to the formation of the June

Recording Contract.

154. NOM Partnership, by and through Ms. Fraile, made the May 15

Misrepresentations with the intention to therewith induce Mr. Rodriguez to consent

to the formation of the June Recording Contract.

155. NOM Partnership, by and through Mr. Hernandez, made the

Inducement Period Misrepresentations with the intention to therewith induce Mr.

Rodriguez to consent to the formation of the June Recording Contract.

156. Mr. Rodriguez justifiably relied on the June 7 Misrepresentations in

deciding to enter into the June Recording Contract.

157. Mr. Rodriguez justifiably relied on the May 15 Misrepresentations in

deciding to enter into the June Recording Contract.

158. Mr. Rodriguez justifiably relied on the Inducement Period

Misrepresentations in deciding to enter into the June Recording Contract.

159. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the June 7 Misrepresentations.

160. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the May 15 Misrepresentations.

161. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the Inducement Period Misrepresentations.

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NINTH CLAIM FOR RELIEF

BREACH OF CONTRACT (SEPTEMBER CONTRACT) UNDER

CALIFORNIA LAW

(AGAINST NOM LLC)

162. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

163. The September Contract embodied a bilateral offer and acceptance by

Mr. Rodriguez and by NOM LLC.

164. The September Contract reflected a transaction of bilateral

consideration.

165. Mr. Rodriguez has performed or attempted to perform all of Mr.

Rodriguez’ obligations with respect to the September Contract.

166. NOM LLC failed to meet NOM LLC’s obligations under the September

Contract.

167. NOM LLC thus breached the September Contract.

168. Mr. Rodriguez did not excuse NOM LLC from meeting the

requirements of the September Contract.

169. No condition was unsatisfied that excused NOM LLC from meeting the

requirements of the September Contract.

170. The September Contract was for a lawful purpose.

171. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM LLC’s breach of the September Contract.

TENTH CLAIM FOR RELIEF

BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING

(SEPTEMBER CONTRACT) UNDER CALIFORNIA LAW

(AGAINST NOM LLC)

172. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

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173. NOM LLC had the obligation under the September Contract to do

nothing that would injure Mr. Rodriguez’s right to receive the benefits of the

September Contract.

174. NOM LLC’s acts and omissions injured Mr. Rodriguez’s right to receive

the benefits of the September Contract.

175. Mr. Rodriguez is entitled to compensatory and consequential damages

arising out of NOM LLC’s breach of the covenant of good faith and fair dealing

implied in the September Contract.

ELEVENTH CLAIM FOR RELIEF

FRAUDULENT PRESENTMENT (SEPTEMBER CONTRACT) UNDER

NEVADA LAW

(AGAINST NOM LLC, MS. FRAILE, MR. HERNANDEZ, AND

MR. FERNANDEZ)

176. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

177. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez, made false

representations to Mr. Rodriguez with respect to the September Contract, including,

without limitation, that the September Contract diminished Mr. Rodriguez’s yearly

obligation to make recordings on NOM LLC’s record label (the “Recording

Obligation Misrepresentation”).

178. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez, made false

representations to Mr. Rodriguez with respect to the September Contract, including,

without limitation, that the September Contract would only impose $2 million in

liquidated damages on another record label in the event Mr. Rodriguez signed a

contract with another record label during the term of the September Contract (the

“Liquidated Damages Misrepresentation”).

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179. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez knew that

the Recording Obligation Misrepresentation was not actually embodied in the terms

of the September Contract that was presented to Mr. Rodriguez for signing.

180. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez knew that

the September Contract that was presented to Mr. Rodriguez for signing did not

contain any change to Mr. Rodriguez’s recording obligation from that set forth in

the June Contract.

181. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez knew that

the Liquidated Damages Misrepresentation was not actually embodied in the terms

of the September Contract that was presented to Mr. Rodriguez for signing.

182. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez knew that

the September Contract that was presented to Mr. Rodriguez for signing contained

a liquidated damages provision imposing $2 million in liquidated damages on Mr.

Rodriguez for any breach of the terms of the September Contract under any

circumstances.

183. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez, made the

Recording Obligation Misrepresentation with the intention to obtain Mr.

Rodriguez’s signature on the September Contract.

184. NOM LLC, Ms. Fraile, Mr. Hernandez, and Mr. Fernandez, made the

Liquidated Damages Misrepresentation with the intention to obtain Mr.

Rodriguez’s signature on the September Contract.

185. In entering into the September Contract, Mr. Rodriguez justifiably

relied on NOM LLC’s, Ms. Fraile’s, Mr. Hernandez’s, and Mr. Fernandez’s

representations regarding the contents of the September Contract that Mr.

Rodriguez was presented for signature on September 3, 2014, including, without

limitation, the Recording Obligation Misrepresentation and the Liquidated

Damages Misrepresentation.

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186. Mr. Rodriguez has been damaged as a result of Mr. Rodriguez’s

reliance on the Recording Obligation Misrepresentation and the Liquidated

Damages Misrepresentation.

187. NOM LLC’s, Ms. Fraile’s, Mr. Hernandez’s, and Mr. Fernandez’s

procurement of Mr. Rodriguez’s entry into the September Contract through

fraudulent presentation makes the September Contract voidable at Mr. Rodriguez’s

election.

TWELFTH CLAIM FOR RELIEF

UNJUST ENRICHMENT UNDER NEVADA COMMON LAW

(AGAINST ALL DEFENDANTS)

188. Mr. Rodriguez reincorporates and realleges all the allegations set forth

above.

189. Defendants benefited from Mr. Rodriguez’s performance and

attempted performance under the Artist-Agent Agreement, the June Recording

Contract, and the September Contract.

190. Defendants retained such benefits at Mr. Rodriguez’s expense.

191. The benefit retained by Defendants in equity and good conscience

belonged to Mr. Rodriguez.

192. Mr. Rodriguez has sustained damages as a direct and proximate result

of Defendants’ acts as alleged herein, and Defendants are liable to Mr. Rodriguez

for such damages.

PRAYER FOR RELIEF

Mr. Rodriguez prays for judgment against Defendants as follows:

a. An order of this Court declaring that all copyrights with respect to Mr.

Rodriguez’s music, broadly construed, are the property of Mr. Rodriguez;

b. An order of this Court declaring that the Mark is the property of Mr.

Rodriguez;

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c. An order of this Court certifying to the Director of the United States

Patent and Trademark Office pursuant to 15 U.S.C. § 1119 that the

Principal Register of Trademarks should be rectified to reflect Mr.

Rodriguez’s sole ownership of the Mark;

d. Damages for NOM Partnership’s breaches of the Artist-Agent Agreement

and the June Recording Contract, and/or voiding of the Artist-Agent

Agreement and the June Recording Contract as having been procured via

fraud in the inducement;

e. Damages for NOM LLC’s breaches of the September Contract, and/or

voiding of the September Contract as having been procured via fraud in

the presentment;

f. Punitive and exemplary damages against NOM Partnership, Ms. Fraile,

Mr. Hernandez, Mr. Naranjo, and Mr. Fernandez for fraud in the

inducement of the June Recording Contract;

g. Punitive and exemplary damages against NOM LLC, Ms. Fraile, Mr.

Hernandez, and Mr. Fernandez for fraud in the presentment of the

September Contract;

h. Compensation for Defendants’ unjust enrichment;

i. Attorney fees as provided for by the June Recording Contract and/or the

September Contract, and by law; and

j. Costs of suit as provided by law.

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DEMAND FOR JURY TRIAL

Mr. Rodriguez requests trial by jury on all causes of action so triable.

Signed this December 24, 2015.

GIBSON & TREU LLP

By /s/ J.D. Lowry

STEVEN A. GIBSON Nevada Bar No. 6656 JODI DONETTA LOWRY, ESQ. Nevada Bar No. 7798 7495 West Azure Drive, Suite 233 Las Vegas, Nevada 89130

Case 2:15-cv-02472 Document 1 Filed 12/24/15 Page 27 of 27