- The Los Angeles Superior Court has weighed in the dispute between the World of Erotica Expo and Erotica LA.
"On Tuesday, March 4, the court granted, after substantial oral argument, our motion for preliminary injunction," said attorney Mark S. Hoffman, one of the attorneys for Teddy Communications, Inc., which is suing to stop the expo.
The World of Erotica Expo was originally scheduled to take place at the Long Beach Convention Center on August 15-17, 2003. That expo is organized and managed by Ronald S. Miller, a California attorney who created and formerly owned the corporation that owned Erotica LA, a similar venue. Miller sold that show and its assets to Teddy Communications, Inc. (TCI) in September of 2000.
"TCI bought Erotica LA from Mr. Miller in an effort to use this event to raise money for the Anti-Censorship Defense Committee which is a division of the Free Speech Coalition," said TCI vice president Darren Roberts. "Knowing what we were using this show for, I don't understand the reasoning behind wanting to compete."
But things came to a head early in 2003, when Miller launched his World of Erotica concept. According to its website, World of Erotica will offer "personal appearances by the biggest stars in the World of adult video along with the most diverse array of products and services to enhance the romance in the attendees interpersonal relationships," and "personal grooming products and services from cosmetic surgery, cosmetic dentistry, permanent cosmetics to the latest in lingerie make-up and boudoir photography."
TCI decided that that was close enough to the Erotica LA formula as to violate the "Covenant Not To Compete" clause of the Erotica LA sales agreement. That clause states, "For a period of five (5) years, Seller, Seller's principal, Ronald Miller and any affiliated entity or person, shall not directly or indirectly compete with Buyer in the United States by sponsoring, managing or holding any trade show related to the adult industry."
Trouble is, that purchase agreement is dated September 12, 2000, and August of 2003 is less than five years from that.
The announcement of World of Erotica Expo led TCI to sue Miller on February 3, 2003, charging that "World of Erotica is either a fictitious name of defendant Miller, is a business entity which is under defendant Miller's control, or is his alter ego," and that "Miller has violated the Covenant Not To Compete clause in the Purchase Agreement... by designing, controlling and promoting, a competing adult industry trade [show] known as 'World of Erotica'."
Miller, in a declaration accompanying his response to the lawsuit, alleged that due to the stress he had suffered from his law practice, "I am able to work in the only other area I have experience and expertise, that being the adult entertainment industry," and that the Expo would be one of his few sources of income.
Nonetheless, Judge John P. Farrell's decided to grant TCI's requested injunction against the show.
"It is ordered," wrote Judge Farrell," during the pendency of the demanded arbitration, the above named defendants, and their agents, employers, employees, representatives, and all persons and/or entities acting in concert with or for them, are restrained and enjoined from engaging in, committing or performing, directly or indirectly, the following acts:
"1) Hosting, sponsoring, producing, organizing, managing, affiliating or otherwise being involved in a certain trade show know as 'World of Erotica' to be held at the Long Beach Convention Center from August 15, 2003 through August 17, 2003; and
"2) Directly or indirectly competing with plaintiff Teddy Communications, Inc. in Los Angeles County by sponsoring, managing, producing, organizing, affiliating, or otherwise being involved in any trade show related to the adult industry."
The above-noted arbitration, to which the parties agreed in the purchase agreement, will reportedly take place about six months from now.
"Of course, Mr. Miller is disappointed by the ruling," said David Calderon, Miller's attorney. "The matter is still in litigation; we're still in the opening phases of it, and we're weighing our options. However, Mr. Miller will abide by the court's order."
