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Arbitrators' Findings Upheld in Legal Malpractice Dispute over Talent Agencies Act Controversy
The California Court of Appeal, Second District, affirmed an arbitration decision that awarded attorney fees to a law firm that represented a management company in a challenge to the reach of the California Talent Agencies Act (TAA). Marathon Entertainment Inc. v. Fox & Spillane LLP, B224686. Fox & Spillane served as counsel to Marathon in three commission disputes with the management company's talent clients. One case was settled and two were litigated. In Marathon Entertainment Inc. v. Blasi, 42 Cal.4th 974 (2008), the California Supreme Court ruled that unlicensed talent agent activity by Marathon could be severed from its management contract with actress Rosa Blasi such that the actress still owed management commissions to Marathon from acting activity obtained by Marathon through a licensed talent agent.
The law firm retainer agreement specified that any disputes Marathon may have with the attorneys would be resolved through arbitration. The parties later proceeded to arbitration on Marathon's allegation of legal malpractice by Fox & Spillane on the talent agent issues; the law firm counterclaimed for payment of legal fees. The arbitrator ruled in favor of the firm, though an appellate arbitrator reduced the legal fees award.
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