In a published decision issued on February 27, 2019, the California Court of Appeal unanimously affirmed our victory in Cleopatra Records, Inc. vs. Gilbert Kelly Crowley & Jennett LLP.
We originally prevailed at trial against the producer of the Broadway show "Million Dollar Quartet," Floyd Mutrux, in 2015, for approx. $1 million. Mutrux then purported to assign his revenues from Million Dollar Quartet to his lawyers at the Gilbert Kelly law firm, however, we argued that our judgment, which we recorded and perfected, had priority over Gilbert Kelly's purported assignment , which had not been recorded. While the Gilbert Kelly firm argued that its assignment constituted a transfer of Mutrux's interest in the revenues, we established that the assignment created a security interest subject to Article 9 of the Uniform Commercial Code ("UCC") and, therefore, priority to Mutrux's revenues was determined based on perfection of the security interest.
The trial court agreed with our analysis. The Court of Appeal, in affirming the trial court's decision, wrote "[u]nlike Gilbert Kelly, we cannot pretend the UCC does not exist," holding that Cleopatra Records' judgment lien had priority over Gilbert Kelly's assignment of Floyd Mutrux's revenue in Million Dollar Quartet.
Gutman Law represented Cleopatra at trial and on the appeal, along with our esteemed colleague, Evan S. Cohen.
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After having obtained an approx. $1 million judgment against "Million Dollar Quartet" producer Floyd Mutrux and his production company in 2015, Cleopatra Records prevailed (again) against Mutrux's attorneys who claimed that Mutrux had assigned his revenues from that show to the firm to pay outstanding fees and costs.
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