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<b>Decision of Note: </b>Arbitration Clause Unenforceable Under Agent Act
The Court of Appeal of California, Second District, Division 1, found an arbitration clause in a management agreement unenforceable under the California Talent Agencies Act. Ferrer v. Preston, B188997.
Personal manager Arnold Preston initiated an arbitration proceeding for commissions from management client Alex Ferrer for Ferrer's role in the TV program 'Judge Alex.' Ferrer claimed the management contract was void on the ground that Preston had functioned as an unlicensed talent agent. When Ferrer filed suit in the L.A. Superior Court, the court enjoined the arbitration proceeding and stayed the court case until the state labor commissioner ' which has initial jurisdiction over controversies under the Talent Agencies Act ' ruled on a petition Ferrer filed with the commissioner against Preston.
Affirming, the court of appeal examined Sec. 1700.45 of the Act, 'Contract provision for arbitration; Provisions prerequisite to validity.' The court noted that the management agreement between Ferrer and Preston 'does not satisfy subdivisions (c) or (d), in that it does not provide for notice to the Commissioner of all arbitration proceedings or give the Commissioner the right to attend the hearings.'
The Court of Appeal of California, Second District, Division 1, found an arbitration clause in a management agreement unenforceable under the California Talent Agencies Act. Ferrer v. Preston, B188997.
Personal manager Arnold Preston initiated an arbitration proceeding for commissions from management client Alex Ferrer for Ferrer's role in the TV program 'Judge Alex.' Ferrer claimed the management contract was void on the ground that Preston had functioned as an unlicensed talent agent. When Ferrer filed suit in the L.A. Superior Court, the court enjoined the arbitration proceeding and stayed the court case until the state labor commissioner ' which has initial jurisdiction over controversies under the Talent Agencies Act ' ruled on a petition Ferrer filed with the commissioner against Preston.
Affirming, the court of appeal examined Sec. 1700.45 of the Act, 'Contract provision for arbitration; Provisions prerequisite to validity.' The court noted that the management agreement between Ferrer and Preston 'does not satisfy subdivisions (c) or (d), in that it does not provide for notice to the Commissioner of all arbitration proceedings or give the Commissioner the right to attend the hearings.'
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