The individual defendants, comprising management and major label directors of Re:Sound, brought motions under Rules 21.01(1)(b) and 25.11(c) of the Rules of Civil Procedure to strike oppression claims asserted against them personally by ACTRA Performers’ Rights Society (ACTRA PRS).
ACTRA PRS alleged that the individual defendants, through their actions and inactions, caused Re:Sound to unfairly compete with ACTRA PRS, fail to adopt proper fee policies, neglect technological enhancements for equitable royalty distribution, and inadequately enforce tariffs, all for personal gain or to benefit their nominating organizations.
The court dismissed the motions, finding that the oppression claims were sufficiently pleaded, not plain and obvious to fail, and did not constitute an abuse of process.
The court applied the two-prong test for personal liability in oppression claims, concluding that the defendants were sufficiently implicated in the alleged oppressive conduct and that personal liability could be a fit remedy.