Former Righthaven CEO Fights Back; Claims As The Manager Of The Manager Of Righthaven He's Still In Power
from the popcorn dept
We recently wrote about how the receiver for Righthaven's assets, Lara Pearson, was surprised to learn that Righthaven founder and former CEO Steve Gibson had gone out and hired lawyers in an attempt to continue the appeals court cases concerning some of its district court losses on key issues. Given that Righthaven had gone into receivership, and Pearson had effectively taken control while auctioning off what few assets there were, this was a problem. Pearson made it clear to Gibson that he no longer had anything to do with Righthaven, alerted both the lawyers he had hired and the court of what Gibson had done, and hoped that Gibson would go away. No such luck: he's now filed an "objection to the receiver's notification terminating" his job. You can see the whole thing below.He makes a few points. First, he again reiterates that Righthaven's key lawyer in many of these lawsuits, Shawn Mangano, had simply stopped responding to him back in February. He seems to want to blame the mess he's in on that. Separately, he argues that the receiver did not have the right to take over the company, and that she did not follow specific court rules. Also, he appears to be trying to reclaim ownership of Righthaven, though the argument is complex:
Even if the Receiver’s termination of me as CEO was somehow within her authority and done within the parameters of permitted procedure, the Receiver’s position that that somehow divests me of authority would be wrong. A limited liability company is ultimately governed by its members and the members have chosen Net Sortie Systems, LLC (“Net Sortie”) as its statutory manager. I am the manager of Net Sortie. While the manager manages the CEO, in the absence of a CEO, the manager would assume management of all affairs of Righthaven...He seems particularly upset that Pearson went out and hired another lawyer -- one who fought against Righthaven -- to help deal with the ongoing appeal, which likely means an effort to get the case closed as quickly and simply as possible. Gibson claims that it's his right to make such hires, despite the dismissal from his job that appears to indicate otherwise. He also keeps suggesting that there's a public interest in having the case heard at the appeals court -- and insists that (the old) Righthaven would succeed on appeal and get a litany of district court rulings against it overturned.
The filing is also chock full of snide remarks directed at Marc Randazza, with Gibson suggesting that the fact that blogs and others in the press have been mocking him is all because of Randazza -- and that the press' interest in this case is somehow unfair to him. Gibson really does seem taken aback at the fact that no one seems to be on his side any more. His own lawyer won't returns his calls. His job at Righthaven has been stripped away. He's being investigated for all this. So you can understand why he's lashing out and going legal, but this can't end well for him.
Rather, it appears that the Receiver is following the agenda of Mr. Randazza who apparently has a very serious concern that the Ninth Circuit will rule in Righthaven’s favor and unravel, finally, his vigorous press campaign, his personal attacks and any right to legal fees he currently enjoys. Unlike Mr. Randazza, Righthaven generally has made a conscious decision to not litigate matters in the press, to not engage in personal attacks either before the courts or otherwise and to address the legal arguments in a clinical fashion.In other words, this saga is simply not over yet.
Independently, as addressed more fully, infra, I remain the manager of the manager of Righthaven and I should have the right to hire or terminate Righthaven counsel.
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Filed Under: lara pearson, marc randazza, steve gibson
Companies: righthaven
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Jealous
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Re: Jealous
More seriously: The theory that as manager of the manager of the company he'd have power to hire/fire would constitute a big loophole in receivership proceedings, if left standing. We that allowed, he could hire himself for 1 hour at an hourly rate of $whateverisleft.
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Re: Re: Jealous
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Re: Re: Jealous
FAP FAP FAP!
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"Manager of the Manager" ???
Rilly?
I mean, he can't come up with a better title than that?
I think this is reason enough to summarily judge against him. He's clearly a douchebag nozzle plug string.
...and frayed at that.
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Perhaps we should also try to get Jack Thompson in there and have the Three Stooges all under the same roof together! Just imagine the slapstick lawsuit comedy the three of them could produce together!
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Hmm, what we really need is a scientific team, or ideally a whole lot of them to take detailed readings of the buildings you list; I get the feeling they've somehow managed to bend space more than a little to contain that much in such a small location.
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I Can't Resist
Keep him away from the shovels.
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And where is Righthaven getting the money to hire a laywer?
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Re: And where is Righthaven getting the money to hire a laywer?
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Re: Re: And where is Righthaven getting the money to hire a laywer?
Although some lawyers do pro bono work, I have a hard time believing that Gibson's lawyer would work for him without payment--especially for a company in receivership.
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Re: Re: Re: And where is Righthaven getting the money to hire a laywer?
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No, I'd say you are trying to exaggerate why. Randazza fights this because having to argue the same things over and over costs his client money that he'll never be able to collect from Gibson, who refuses to pay fines and judgements, but somehow has the money for a lawyer.
The receiver is doing the right thing. She was supposed to have been given all the Righthaven assets to settle legal judgements. Now Gibson, who, IMO, clearly was hiding assets, is apparently giving money to an attorney to continue the cases, money that he legally owes to those with outstanding judgements against him.
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Re: Re: Re: Re: Re: And where is Righthaven getting the money to hire a laywer?
I was looking at the order appointing her receiver (she was recommended by Randazza et al., of course), and I see that her receivership was limited to just the IP: "it is hereby ORDERED that Ms. Lara Pearson is appointed Receiver of Plaintiff Righthaven LLC’s intellectual property." http://ia700408.us.archive.org/32/items/gov.uscourts.nvd.78697/gov.uscourts.nvd.78697.62.10.pdf
H ow could she think her mandate lets her fire officers too? I don't get it.
Let's see: Friends with Randazza, hires one of Righthaven's foes to represent Righthaven, exceeds her mandate to receive IP, won't let Randazza's precious appeal happen (we know how much he wants both the lack of standing and the fair use rulings to go without scrutiny), "fires" Gibson, Pro's silly rulings, etc. You guys all tend to lay the blame on Gibson et al., but clearly there's a lot of other funny business going on here too. The fact that the receiver, one chosen by Randazza, is trying so desperately to stop this appeal, that can only hurt Randazza's client, is really quite fantastical. Railroading comes to mind.
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Re: Re: Re: Re: Re: Re: And where is Righthaven getting the money to hire a laywer?
Since you're familiar with righthaven's cases, have they won any case?
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Well, now I understand the whole "lawyer not getting paid" justification from earlier...
Anyway, good luck with that whole truth/law idea you've got going. I know there are good lawyers out there, its just hard to pick 'em out sometimes.
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I notice you ignored the question I asked. Can you point to any case that was in righthaven's favor?
That is why it is at the point it is now. You can't keep a bankrupt company open to just keep bringing bogus lawsuits.
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The fact that you don't grasp that notion speaks volumes of why so many lawyers go off half-baked with complete disregard for fiduciary considerations and only seek to put another feather in their cap, and get a big slice of the perceived potential pie should they actually win.
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Let me avoid the Carreon Effect
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Re: Let me avoid the Carreon Effect
The motion to appoint Pearson as receiver is here: http://ia600408.us.archive.org/32/items/gov.uscourts.nvd.78697/gov.uscourts.nvd.78697.62.0.pdf It makes clear that the receivership is about assigning and selling Righthaven's IP.
The proposed order making her receiver is here: http://ia600408.us.archive.org/32/items/gov.uscourts.nvd.78697/gov.uscourts.nvd.78697.62.10.pdf It says: "[I]t is hereby ORDERED that Ms. Lara Pearson is appointed Receiver of Plaintiff Righthaven LLC’s intellectual property."
Judge Pro adopts the proposed order here: http://ia600408.us.archive.org/32/items/gov.uscourts.nvd.78697/gov.uscourts.nvd.78697.66.0.pdf
Th e receiver's report, wherein she makes clear that she thinks she has almost unlimited powers to terminate officers, repudiate contracts, etc. is here: http://ia600408.us.archive.org/32/items/gov.uscourts.nvd.78697/gov.uscourts.nvd.78697.92.0.pdf
I' m stupefied. If a judge appointed me to be receiver of an LLC's IP, I wouldn't then think that I could completely take over all the company's affairs, even going so far as to threaten to sue the CEO on behalf of the company. It's really quite remarkable.
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Re: Re: Let me avoid the Carreon Effect
So leave it to another attorney (the receiver) to pull her own twist of logic...
floored.
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I think I was a bit wrong there. Looking it over again, I see that the judge granted the motion. He didn't adopt the proposed order. Said Judge Pro: "IT IS THEREFORE ORDERED that Defendant’s Motion to Appoint Receiver and Compel Assignment of Intellectual Property (Doc. #62) is hereby GRANTED."
The first sentence of the motion makes clear that the receivership is limited: "Defendant Wayne Hoehn (“Hoehn”), through his attorneys, brings this motion seeking this Court to order the appointment of a receiver to which Plaintiff Righthaven LLC (“Righthaven”) shall assign all of its intellectual property and other intangible property, which the receiver shall auction in order to partially satisfy Hoehn’s judgment and writ of execution entered against Righthaven. (Docs. # 44, 59)."
So the receivership is explicitly for the purpose of having Righthaven assign the rights to the receiver, and then the receiver is to auction them off to get some money for Hoehn (which I surmise actually goes to Randazza's crew). Nothing about having plenary power to take over the company, fire Gibson, hire lawyers, etc.
The funny thing is, Pearson is now saying that she just assumed that Gibson and wife were fired as of the moment she was appointed receiver. But this cannot be. The sentence quoted shows that she should have been expecting Gibson to transfer the property to her. How could she expect Gibson to effect the transfers if she considered him to have already been fired as CEO? That makes no sense, and appears to be some post hoc rationalizing. She couldn't possibly have thought that the man who had just been fired would thereafter transfer the rights to her.
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In the Theme of Naming these kinds of Actions........
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Re: In the Theme of Naming these kinds of Actions........
This Gibson is borrowing from his namesake's software and is trying to Spin, Rite?
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Re: Re: In the Theme of Naming these kinds of Actions........
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Re: Re: In the Theme of Naming these kinds of Actions........
ChimpObama's (Formerly ChimpBush) Second Law:
"At the moment an online discussion has a contributor mention the name "Kirk", the probability of a followup comment mentioning the word "Enterprise" approaches 1."
COMBB
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Re: In the Theme of Naming these kinds of Actions........
Maybe if he'd donated $10 to a charity and then sued them for taking his money, we'd be calling it the "Gibson Effect"...
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Even though Carreon really stole the Carreon Effect concept from Barbra Streisand. And he should be held liable for that as well.
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Guidance
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Re: Guidance
a: not show up to court
b: make ridiculous claims
c; lose in every district possible
d; blame the legal system for your failures
e; blame the press
f; blame everyone else for your own failures.
so far he seems to have followed my advice pretty well. how did i do, is there any other piece of advice i should give?
too bad he's losing like crazy though, our stupid legal system needs to be nicer to all the ip extremist shills.
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Re: Re: Guidance
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LOLOL
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Damn, wouldn't that be sweet - what? no you can't fire me, I've hired someone - myself - to do my job in my place.
He just singlehandedly solved the unemployment problem in this country.
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Silliness
All I see is him saying "You can't do this to my company because... because... [silent sobbing]" I would expect the court to end this one quickly when he is being rather silly.
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Is Righthaven a subsidiary of
It sure appears that way.
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*grabs popcorn and a good seat*
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