Elvin Associates v. Franklin

735 F. Supp. 1177, 1990 U.S. Dist. LEXIS 4889, 1990 WL 57300
CourtDistrict Court, S.D. New York
DecidedApril 26, 1990
Docket85 Civ. 5723 (WK)
StatusPublished
Cited by8 cases

This text of 735 F. Supp. 1177 (Elvin Associates v. Franklin) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elvin Associates v. Franklin, 735 F. Supp. 1177, 1990 U.S. Dist. LEXIS 4889, 1990 WL 57300 (S.D.N.Y. 1990).

Opinion

MEMORANDUM & ORDER

WHITMAN KNAPP, District Judge.

After a bench trial of several days, 1 we made preliminary findings on the record in plaintiffs favor, both as to the direct claim that defendants Aretha Franklin and Crown Productions, Inc., breached a contract under which Franklin was to star in a musical production entitled “Sing Mahalia Sing” (“Mahalia”), and as to defendants’ counterclaim alleging breach by plaintiff of a second contract relating to the same production. The parties have briefed several legal questions in their post-trial submissions, and in light of that briefing we have somewhat altered the tentative findings of fact and conclusions of law. While we have reconsidered and changed our view that defendants are liable for breach of contract, we do hold defendant Franklin liable to plaintiff on a theory of promissory estoppel. We adhere to our originally expressed view that the counterclaim for breach of contract should be dismissed.

FACTS

The following recitation of facts is derived from the testimony and exhibits offered at trial, as well as the deposition testimony of defendant Franklin. 2 As this memorandum is not intended for publication, it contains only those facts necessary to permit the parties to understand our factual findings and legal conclusions.

In early 1984 Ashton Springer, the principal of plaintiff Elvin Associates, 3 began efforts to mount a Broadway musical production about the life and music of Mahalia Jackson, and wrote to defendant Aretha Franklin seeking her agreement to appear in the title role. 4 Franklin called Springer and expressed her strong interest in the production, and told Springer to contact her agents at the William Morris Agency. Springer spoke with Phil Citron and Katy Rothacker of that agency and in several conversations with the latter discussed the basic financial terms of Franklin’s engagement to appear. Several proposals and counter-proposals were exchanged, in each instance relayed by Rothacker to Franklin and then back to Springer. Near the end of February 1984, Rothacker called Springer and informed him that his final proposal was acceptable.

In the interim, Springer had already set about making the necessary arrangements to get the production going. He was in frequent consultation with Franklin concerning artistic and production matters, although he negotiated the financial terms of the agreement strictly through her agents. During a conversation about rehearsal and performance dates, Franklin indicated to Springer that there were no other conflicting engagements on her schedule, stating: “This is what I am doing.”

After consulting with Franklin, Springer hired George Faison as director-choreographer. In the second week of March, Springer and Faison flew to Detroit to meet with Franklin to discuss various aspects of the production, including rehearsal and performance dates. Franklin agreed on a tentative schedule that called for rehearsals to begin in April and performances to begin in May.

After returning to New York, Springer began negotiating limited partnership *1180 agreements with various investors to finance the “Mahalia” production. He also began calling promoters and theaters in various cities in an effort to reserve dates for performances. During discussions with several promoters he learned for the first time that Franklin had recently cancelled several performances, purportedly due to a newly acquired fear of flying. Springer spoke with Citron at William Morris regarding these incidents, and the latter stated that the cancellations resulted from commitments made by prior agents for Franklin without her approval, and reassured Springer that there was no such problem here. Springer also spoke with Franklin, who reassured him that she wanted to do the show and that she would fly as necessary. Springer offered to make alternative arrangements for transportation to the various performance sites, and to alter the performance schedule to accommodate slower forms of transportation. Franklin told Springer .that she was uncomfortable traveling more than 200 miles per day by ground transportation, but strongly assured him that she would overcome her fear of flying.

Springer had also in the interim contacted Jay Kramer, his attorney, about the proposed production and the terms he had discussed with Franklin’s representatives. Kramer set up a meeting for March 23, 1984 with Franklin’s representatives for the purpose of finalizing the agreement. Present at the meeting on that date were Springer, Kramer, Citron, Rothacker, Greg Pulis (an attorney at William Morris) and Andrew Feinman (Franklin’s attorney). The basic financial terms that had been previously agreed upon in the Springer-Rothacker conversations were confirmed: Franklin would be paid $40,000 per week in salary, and an additional weekly amount to cover her expenses ($5000 per week while in New York; $4500 per week outside of New York). In addition, she would receive 15% of the show’s gross weekly revenues exceeding $225,000 (the “break even point”), and 20% of the show’s weekly profits. In return, she would commit herself to 12 weeks of performances. Springer and Kramer asked Franklin’s representatives to call her and obtain her approval of these terms. The Franklin team left the meeting room, and shortly returned indicating that she had agreed to them. The only major issue left unresolved at the close of this meeting was the location for rehearsals, Franklin’s representatives having requested that they be in Detroit. Faison subsequently vetoed this proposal, stressing that the lighting and costume designers that were to be engaged were all in New York. Springer did not convey this information directly to Franklin, but she ultimately learned through her agents that the rehearsals would take place in New York.

After the March 23 meeting, Kramer drafted a contract in the form of a letter to defendant Crown Productions, Inc., the corporation through which Franklin’s services were to be furnished. Crown Productions was to be the primary obligor (and obligee) under the contract, and Franklin was personally to guarantee Crown’s performance.

Before drafting the contract, Kramer had obtained from William Morris a copy of a “Domestic Rider” containing various required terms for all engagement contracts involving Franklin. Among the terms listed in the rider was: “This contract/agreement shall not be deemed valid until executed by ARTIST.” At the bottom of the rider was the admonition “DO NOT DEVIATE.” Kramer reviewed the rider to determine which terms were appropriate for inclusion in the draft. He did not include in the first draft the term concerning validity upon execution. As he testified: “It was impractical. We were underway. From the moment we left that room, given the schedule that we outlined Mr. Springer was well on his way to making financial commitment based on the understanding we thought we had reached.” Franklin’s representatives never suggested that the term be inserted in any of the subsequent drafts. However, every draft began with the sentence: “This letter [addressed to Crown Productions, Inc.], when countersigned by you, shall constitute our understanding until a more formal agreement is prepared.”

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Cite This Page — Counsel Stack

Bluebook (online)
735 F. Supp. 1177, 1990 U.S. Dist. LEXIS 4889, 1990 WL 57300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elvin-associates-v-franklin-nysd-1990.