Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Cameo Clips

By Stan Soocher
December 27, 2011

FILM PRODUCTION LOSSES/ISSUE PRECLUSION

The Court of Appeals of Colorado decided that the outcome of a suit by film producer Bristol Bay against book author Clive Cussler in California ' over the unsuccessful film Sahara, which lost more than $50 million ' precluded a suit by Bristol Bay against Cussler's agent and book publishers in Colorado. Bristol Bay Productions LLC v. Lampack, 10CA2039. A California jury had in part ruled against Bristol Bay (earlier known as Crusader Entertainment) on its deceit claim against Cussler; the California Court of Appeal affirmed. Bristol Bay also sued Cussler's agent and publishers in Denver District Court over the allegedly inflated number of 100 million of Cussler's books sold that had been told to Crusader during negotiations for use of the Cussler literary property. Bristol Bay claimed the actual sales figure was closer to 40 million. But the Denver court dismissed Bristol Bay's suit, citing issue preclusion from the California litigation.

Affirming, the Colorado appeals court noted as to Cussler's agent Peter Lampack: “In California, the parties litigated and the jury determined that either Lampack, when acting on Cussler's behalf, or Cussler himself misrepresented the number of books that Cussler had sold. The parties also litigated and the jury also determined that, although Bristol Bay relied on this misrepresentation when it entered into the contract with Cussler, this reliance was not a sufficient cause of harm to Bristol Bay as to support a claim for damages.”

As to Cussler's book publishers, Simon & Schuster and Penguin Group USA, the Colorado appeals court emphasized: “[A]ll of the alleged post-contract misrepresentations were discoverable by Bristol Bay during the prior action, inasmuch as they were all public (available on the publishers' websites and book jackets) and had taken place before the California trial, as the movie was released before trial.”


NON-COMPETITION CLAUSES/TV STATION ACQUISITIONS

The Court of Civil Appeals of Alabama decided that a TV station employee's non-competition agreement wasn't assigned to a purchaser of the station. Booth v. Newport Television LLC, 2100413. Cyndi Booth had signed a non-competition agreement for her position as a sales associate with the Clear Channel Broadcasting station WJTC-TV, later acquired by Newport Television. Competing station WKRG subsequently offered her a job but claimed the offer was rescinded after a Newport representative threatened to sue WKRG by citing the non-competition agreement. Booth then filed an action in Mobile Circuit Court seeking a declaration that the non-competition was void.

Reversing and remanding the trial court's ruling for Newport, the Alabama appeals court found: “Not only is it undisputed that Booth's employment contract and non-compete agreement were entered into before Newport purchased Clear Channel's assets, the fact that Booth's employment contract is not included [in the station purchase agreement] among the numerous employment contracts ' [to be assigned by Clear Channel to Newport] is telling.” Newport argued that the employment contracts that had been listed were those of “highly-compensated on-air talent, producers, etc. as opposed to ancillary employment agreements such as non-compete agreements, confidentiality agreements, etc.” But the appeals court determined: “Regardless of whether the parties to the purchase agreement were required by law to identify non-compete agreements as being subject to the purchase agreement in order to effectuate an assignment of the
non-compete agreements, the terms of the purchase agreement provided that the non-compete agreement was required to be listed if it was intended to be assigned.”


Stan Soocher is Editor-in-Chief of Entertainment Law & Finance and a tenured Associate Professor of Music & Entertainment Industry Studies at the University of Colorado's Denver Campus. He can be reached at [email protected] or via www.stansoocher.com.

FILM PRODUCTION LOSSES/ISSUE PRECLUSION

The Court of Appeals of Colorado decided that the outcome of a suit by film producer Bristol Bay against book author Clive Cussler in California ' over the unsuccessful film Sahara, which lost more than $50 million ' precluded a suit by Bristol Bay against Cussler's agent and book publishers in Colorado. Bristol Bay Productions LLC v. Lampack, 10CA2039. A California jury had in part ruled against Bristol Bay (earlier known as Crusader Entertainment) on its deceit claim against Cussler; the California Court of Appeal affirmed. Bristol Bay also sued Cussler's agent and publishers in Denver District Court over the allegedly inflated number of 100 million of Cussler's books sold that had been told to Crusader during negotiations for use of the Cussler literary property. Bristol Bay claimed the actual sales figure was closer to 40 million. But the Denver court dismissed Bristol Bay's suit, citing issue preclusion from the California litigation.

Affirming, the Colorado appeals court noted as to Cussler's agent Peter Lampack: “In California, the parties litigated and the jury determined that either Lampack, when acting on Cussler's behalf, or Cussler himself misrepresented the number of books that Cussler had sold. The parties also litigated and the jury also determined that, although Bristol Bay relied on this misrepresentation when it entered into the contract with Cussler, this reliance was not a sufficient cause of harm to Bristol Bay as to support a claim for damages.”

As to Cussler's book publishers, Simon & Schuster and Penguin Group USA, the Colorado appeals court emphasized: “[A]ll of the alleged post-contract misrepresentations were discoverable by Bristol Bay during the prior action, inasmuch as they were all public (available on the publishers' websites and book jackets) and had taken place before the California trial, as the movie was released before trial.”


NON-COMPETITION CLAUSES/TV STATION ACQUISITIONS

The Court of Civil Appeals of Alabama decided that a TV station employee's non-competition agreement wasn't assigned to a purchaser of the station. Booth v. Newport Television LLC, 2100413. Cyndi Booth had signed a non-competition agreement for her position as a sales associate with the Clear Channel Broadcasting station WJTC-TV, later acquired by Newport Television. Competing station WKRG subsequently offered her a job but claimed the offer was rescinded after a Newport representative threatened to sue WKRG by citing the non-competition agreement. Booth then filed an action in Mobile Circuit Court seeking a declaration that the non-competition was void.

Reversing and remanding the trial court's ruling for Newport, the Alabama appeals court found: “Not only is it undisputed that Booth's employment contract and non-compete agreement were entered into before Newport purchased Clear Channel's assets, the fact that Booth's employment contract is not included [in the station purchase agreement] among the numerous employment contracts ' [to be assigned by Clear Channel to Newport] is telling.” Newport argued that the employment contracts that had been listed were those of “highly-compensated on-air talent, producers, etc. as opposed to ancillary employment agreements such as non-compete agreements, confidentiality agreements, etc.” But the appeals court determined: “Regardless of whether the parties to the purchase agreement were required by law to identify non-compete agreements as being subject to the purchase agreement in order to effectuate an assignment of the
non-compete agreements, the terms of the purchase agreement provided that the non-compete agreement was required to be listed if it was intended to be assigned.”


Stan Soocher is Editor-in-Chief of Entertainment Law & Finance and a tenured Associate Professor of Music & Entertainment Industry Studies at the University of Colorado's Denver Campus. He can be reached at [email protected] or via www.stansoocher.com.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
How Secure Is the AI System Your Law Firm Is Using? Image

In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.