Howard Entertainment, Inc. v. Kudrow

208 Cal. App. 4th 1102, 146 Cal. Rptr. 3d 154, 2012 WL 3594280, 2012 Cal. App. LEXIS 917
CourtCalifornia Court of Appeal
DecidedAugust 23, 2012
DocketNo. B234962
StatusPublished
Cited by81 cases

This text of 208 Cal. App. 4th 1102 (Howard Entertainment, Inc. v. Kudrow) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howard Entertainment, Inc. v. Kudrow, 208 Cal. App. 4th 1102, 146 Cal. Rptr. 3d 154, 2012 WL 3594280, 2012 Cal. App. LEXIS 917 (Cal. Ct. App. 2012).

Opinions

[1105]*1105Opinion

MOSK, J.

INTRODUCTION

Plaintiff and appellant Scott Howard (Howard), a personal manager, entered into an oral agreement with defendant and respondent Lisa Kudrow (Kudrow), an entertainer, by which agreement he would receive for personal management services a percentage of Kudrow’s income.1 After Kudrow terminated Howard’s services, he claimed that he should continue to receive a percentage of Kudrow’s income from Kudrow’s engagements entered into, or from services rendered, during the period of his retention. Howard relied upon custom and usage in the industry to support his claim. In granting a summary judgment in favor of Kudrow, the trial court excluded from evidence the declaration of Howard’s expert on the ground of lack of foundation. We reverse the summary judgment, holding that the expert’s declaration should have been admitted in evidence.

BACKGROUND

A. The Previous Appeal2

Kudrow began working in the entertainment industry in 1986. By 1991, she had performed in a play and in an NBC pilot, made several television appearances, performed minor roles in several motion pictures, and been a featured comedy theater performer. She had a personal manager for approximately one year and also had a talent agent, and knew their different roles. She knew that agents were entitled to commissions on the income generated on contracts they negotiated for their clients and engagements their clients performed during their relationship, even if that income was received* or earned after the termination of the relationship. Kudrow sought career advice from fellow actors and had consulted with an entertainment attorney on issues relating to her entertainment career.

From 1984 through 1989, Howard worked in the entertainment industry, including positions at Capitol Records, MGM, and The William Morris [1106]*1106Agency (William Morris). During that time he became a talent agent. In 1989, Howard left William Morris.

In 1991, Howard partnered with Debbie Miller, his former supervisor at William Morris, and became a personal manager,3 an occupation that purportedly was then developing in the entertainment industry.4 At that time, Howard did not have any experience as a personal manager and did not have any clients.

In 1991, Howard approached Kudrow about becoming her personal manager. Howard and Kudrow orally agreed that Howard would provide personal management services for Kudrow and in return receive a 10 percent commission on her income. There were no other specific discussions about compensation. Kudrow was one of the first clients Howard obtained after he became a personal manager.

In 1992, Kudrow landed a guest-starring part on the popular television show Mad About You. In 1993, she was cast in the recurring role of Ursula Buffay on Mad About You, and in 1994, she was cast in her “career-making” or “break-out” role as Phoebe on the hit television series, Friends. From 1994 through 2004, new episodes of Friends were broadcast on prime-time national television. Kudrow became contractually entitled to not only an amount of up to $1 million per episode of Friends but also to 1.25 percent of the “backend” earnings—i.e., profits from the show—and she was entitled to certain other residual payments. In 2000, the parties modified their oral agreement to provide that Howard’s entitlement to commissions on certain earnings from Friends would be reduced. In 2004, the 10th and last year of Friends, Kudrow and Howard modified their oral agreement for the second and last time, decreasing Howard’s commission from 10 percent to 5 percent [1107]*1107on Kudrow’s earnings for the final season of Friends.5 She was earning $1 million per episode for the final 18 episodes of Friends.

Kudrow terminated Howard’s management services as of early March 2007. During their meeting concerning this termination, neither Kudrow nor Howard addressed Howard’s compensation or how the termination would affect his compensation following termination. Thereafter, Howard made a demand for commissions on income Kudrow earned following the termination of their relationship for work she performed during the relationship, such as, for example, in Friends. When Kudrow rejected that demand, Howard filed a complaint against her alleging breach of contract and seeking declaratory relief and an accounting. Howard alleged that in 1991, the parties entered into an oral agreement pursuant to which he would provide management services to Kudrow in exchange for a 10 percent commission on her earnings, and that they later modified the agreement. He further alleged that after Kudrow terminated Howard’s services, she breached their oral contract by failing to make commission payments for income she received after the termination of his services for work she performed or contracted to perform when Howard was still her manager. Howard sought a declaration of his claimed rights and an accounting of the relevant income.

Kudrow filed a motion for summary judgment contending that although there was an oral agreement pursuant to which Howard would receive commissions on Kudrow’s earnings, Howard could not establish that she had breached the agreement because there was no evidence that the parties had agreed to posttermination compensation. Kudrow further contended that the causes of action for declaratory relief and an accounting also failed because they could not survive dismissal of the breach of contract claim.

Howard opposed the motion and submitted a declaration from his expert, Martin Bauer, in which Bauer stated that from at least the early 1980’s, it had been the custom and practice in the entertainment industry for personal managers to be paid posttermination commissions on the services that their clients rendered, and on engagements that their clients entered into, when the personal managers were representing them. Bauer opined that Howard, even after Kudrow terminated Howard’s services in 2007 was entitled to receive his commissions on all of Kudrow’s earnings derived from the services she rendered, and engagements she entered into, while Howard was her manager.

Six calendar days before the summary judgment hearing, Kudrow filed objections to statements set forth in the Bauer declaration on the grounds that [1108]*1108such statements were mere conclusions and made without a reasoned explanation connecting them to the facts of the case. At the hearing, after the trial court indicated an intention to sustain the objections to the Bauer declaration and grant the summary judgment motion, the parties argued whether the Bauer declaration contained a sufficient foundation.

Before the trial court ruled on Kudrow’s objections, Howard requested a continuance to submit a revised declaration to provide the information the trial court said was missing from the Bauer declaration.

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Bluebook (online)
208 Cal. App. 4th 1102, 146 Cal. Rptr. 3d 154, 2012 WL 3594280, 2012 Cal. App. LEXIS 917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-entertainment-inc-v-kudrow-calctapp-2012.