## Facts

- Gene Roddenberry and Eileen Roddenberry divorced in 1969 pursuant to a marital settlement agreement incorporated into the judgment.
- During the marriage, Gene developed the original *Star Trek* television series, which aired from 1966–1969 and was cancelled; syndication profits, if any, would arise under Norway Corporation’s production contract.
- The settlement awarded Gene all interests in Norway and the *Star Trek* rights, but granted Eileen a one-half interest in “profit participation income” from *Star Trek*.
- After the divorce, Gene (through Norway) became involved in additional *Star Trek* projects, including feature films, an animated series, later television series (*Star Trek: The Next Generation* and *Deep Space Nine*), and merchandising.
- Eileen sued Gene, Norway, and (after Gene’s death) his estate, asserting (1) contractual entitlement to one-half of profit participation from later *Star Trek* projects and (2) fraud based on underpayment and concealment of profit participation amounts.
- The trial court denied Eileen profits from the films, animated series, and merchandising, but awarded her one-half of profit participation from *The Next Generation* and *Deep Space Nine* on a “continuation” theory and awarded punitive damages against Norway for fraud.
- Both sides appealed: Eileen challenged the denials; defendants challenged the awards for *The Next Generation* and *Deep Space Nine* and the punitive damages.

## Issues

1. Whether the settlement term granting Eileen “one-half of the profit participation income from *Star Trek*” included profits from post-divorce *Star Trek* projects or was limited to profit participation associated with the original 1960s series as understood in 1969.
2. Whether punitive damages for fraud were properly awarded against Norway for underpayment and concealment of amounts owed, notwithstanding Gene’s death.

## Decision

- The Court of Appeal reversed the portion of the judgment awarding Eileen profit participation from *Star Trek: The Next Generation* and *Deep Space Nine*.
- The court affirmed the denial of Eileen’s claims to profits from the feature films, the animated series, and merchandising.
- The court affirmed the punitive damages award against Norway for fraud.

## Legal Principles

- Contract terms in a marital settlement agreement are construed to effectuate the parties’ objective intent at the time of contracting, not later understandings driven by subsequent events or increased value.
- Where a settlement uses a specialized term drawn from a specific underlying contract (here, “profit participation”), courts may look to that contemporaneous contractual setting and usage to determine scope.
- Absent clear contractual language, a spouse’s share in an asset’s defined income stream at divorce does not automatically extend to later-created works, later contracts, or new revenue streams generated post-divorce.
- A corporate entity may be subject to punitive damages for its fraudulent conduct even if the individual principal responsible has died, where the award is against the corporation rather than the decedent’s estate.

## Conclusion

The court limited the settlement’s “profit participation income” provision to profit participation attributable to the original *Star Trek* series as understood in 1969, rejecting recovery for later franchise projects, while sustaining punitive damages against Norway for fraudulent underpayment and concealment.


Roddenberry v. Roddenberry, 44 Cal. App. 4th 634, 51 Cal. Rptr. 2d 907 (Ct. App. 1996)