Court Denies Kaytel’s Motion to Dismiss Evil Angel Lawsuit

Matt O'Conner
LOS ANGELES — A district court judge has denied a motion filed by Kaytel Video Distribution owner Alain Elmaleh to dismiss a counterfeiting lawsuit filed against Kaytel by Evil Angel owner John Stagliano and an intertwined case filed by Jules Jordan, according to court documents.

The court also has granted Jordan’s motion to dismiss Count 1 of a counterclaim filed by Kaytel against Jordan and Jules Jordan Video CEO Ashley Gasper for alleged damage to Kaytel’s business and professional reputation.

At the heart of the case are Stagliano’s and Jordan’s claims that Elmaleh, Jacky Elkeslassy and Gerald Ouzzan, through their companies — Kaytel, Leisure Time Canada, Transworld Sales Agency, Jacky's One Stop Distribution and Sylnet Distribution — had manufactured and distributed thousands of counterfeit DVDs of copyrighted material.

Stagliano said he discovered the alleged frauds when he started getting returns of defective DVDs that were missing several key elements that are normally present on all authentic Evil Angel DVDs.

In their suits, Evil Angel and Jordan called for a temporary restraining order and a request to Canadian authorities to seize relevant computer data, documents and other related electronic records from the companies and individuals listed in the lawsuit.

Elmaleh filed a countersuit alleging damage to his business and reputation as well as a motion to dismiss the original case on the grounds that the U.S. district court where it was filed lacks jurisdiction over his company’s affairs. He has lost on both counts.

A trial has been tentatively set for Dec. 4.

The case numbers are CV 05-6769 and CV 05-6771.