Marathon Entertainment, Inc. v. Blasi

174 P.3d 741, 70 Cal. Rptr. 3d 727, 42 Cal. 4th 974, 2008 Cal. LEXIS 805
CourtCalifornia Supreme Court
DecidedJanuary 28, 2008
DocketS145428
StatusPublished
Cited by61 cases

This text of 174 P.3d 741 (Marathon Entertainment, Inc. v. Blasi) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marathon Entertainment, Inc. v. Blasi, 174 P.3d 741, 70 Cal. Rptr. 3d 727, 42 Cal. 4th 974, 2008 Cal. LEXIS 805 (Cal. 2008).

Opinion

Opinion

WERDEGAR, J.

In Hollywood, talent—the actors, directors, and writers, the Jimmy Stewarts, Frank Capras, and Billy Wilders who enrich our daily cultural lives—is represented by two groups of people: agents and managers. Agents procure roles; they put artists on the screen, on the stage, behind the camera; indeed, by law, only they may do so. Managers coordinate everything else; they counsel and advise, take care of business arrangements, and chart the course of an artist’s career.

This division largely exists only in theory. The reality is not nearly so neat. The line dividing the functions of agents, who must be licensed, and of managers, who need not be, is often blurred and sometimes crossed. Agents sometimes counsel and advise; managers sometimes procure work. Indeed, the occasional procurement of employment opportunities may be standard operating procedure for many managers and an understood goal when not-yet-established talents, lacking access to the few licensed agents in Hollywood, hire managers to promote their careers. 1

We must decide, what legal consequences befall a manager who steps across the line and solicits or procures employment without a talent agency license. We hold that (1) contrary to the arguments of personal manager Marathon Entertainment, Inc. (Marathon), the strictures of the Talent Agencies Act (Lab. Code, § 1700 et seq.) (Act) apply to managers as well as agents; (2) contrary to the arguments of actress Rosa Blasi (Blasi), while the Labor Commissioner has the authority to void manager-talent contracts ab initio for unlawful procurement, she also has discretion to apply the *981 doctrine of severability to partially enforce these contracts; and (3) in this case, a genuine dispute of material fact exists over whether severability might apply to allow partial enforcement of the parties’ contract. Accordingly, we affirm the Court of Appeal.

Factual and Procedural Background

In 1998, Marathon and Blasi entered into an oral contract for Marathon to serve as Blast’s personal manager. Marathon was to counsel Blasi and promote her career; in exchange, Blasi was to pay Marathon 15 percent of her earnings from entertainment employment obtained during the course of the contract. During the ensuing three years, Blasi’s professional appearances included a role in a film, Noriega: God’s Favorite (Industry Entertainment 2000), and a lead role as Dr. Luisa Delgado on the television series Strong Medicine.

According to Marathon, Blasi reneged on her agreement to pay Marathon its 15 percent commission from her Strong Medicine employment contract. In the summer of 2001, she unilaterally reduced payments to 10 percent. Later that year, she ceased payment altogether and terminated her Marathon contract, stating that her licensed talent agent, John Kelly, who had served as her agent throughout the term of the management contract with Marathon, was going to become her new personal manager.

Marathon sued Blasi for breach of oral contract, quantum meruit, false promise, and unfair business practices, seeking to recover unpaid Strong Medicine commissions. Marathon alleged that it had provided Blasi with lawful personal manager services by providing the downpayment on her home, paying the salary of her business manager, providing her with professional and personal advice, and paying her travel expenses.

After obtaining a stay of the action, Blasi filed a petition with the Labor Commissioner alleging that Marathon had violated the Act by soliciting and procuring employment for Blasi without a talent agency license. 2 The Labor Commissioner agreed. The commissioner found Marathon had procured various engagements for Blasi, including a role in the television series Strong Medicine. Concluding that one or more acts of solicitation and procurement by Marathon violated the Act, the commissioner voided the parties’ contract ab initio and barred Marathon from recovery.

Marathon appealed the Labor Commissioner’s ruling to the superior court for a trial de novo. (See § 1700.44, subd. (a); Buchwald v. Katz (1972) 8 *982 Cal.3d 493, 500-501 [105 Cal.Rptr. 368, 503 P.2d 1376].) It also amended its complaint to include declaratory relief claims challenging the constitutionality of the Act. Marathon alleged that the Act’s enforcement mechanisms, including the sanction of invalidating the contracts of personal managers that solicit or procure employment for artists without a talent agency license, violated the managers’ rights under the due process, equal protection, and free speech guarantees of the state and federal Constitutions.

Blasi moved for summary judgment on the theory that Marathon’s licensing violation had invalidated the entire personal management contract. Blasi submitted excerpts from the Labor Commissioner hearing transcript as evidence that Marathon had violated the Act by soliciting or procuring employment for her without a talent agency license. Blasi did not specifically argue or produce evidence that Marathon had illegally procured the Strong Medicine employment contract.

The trial court granted Blast’s motion for summary judgment and invalidated Marathon’s personal management contract as an illegal contract for unlicensed talent agency services in violation of the Act, denied Marathon’s motion for summary adjudication of the Act’s constitutionality, and entered judgment for Blasi.

The Court of Appeal reversed in part. It agreed with the trial court that the Act applied to personal managers. However, it concluded that under the law of severability of contracts (Civ. Code, § 1599), because the parties’ agreement had the lawful purpose of providing personal management services that are unregulated by the Act, and because Blasi had not established that her Strong Medicine employment contract was procured illegally, the possibility existed that Blasi’s obligation to pay Marathon a commission on that contract could be severed from any unlawful parts of the parties’ management agreement. In reaching this conclusion, the Court of Appeal distinguished prior cases that had voided management contracts in their entirety (Yoo v. Robi (2005) 126 Cal.App.4th 1089 [24 Cal.Rptr.3d 740]; Waisbren v. Peppercorn Productions, Inc. (1995) 41 Cal.App.4th 246 [48 Cal.Rptr.2d 437]) and in some cases expressly refused to sever the contracts (Yoo, at pp. 1104-1105).

We granted review to address the applicability of the Act to personal managers and the availability of severance under the Act.

*983 Discussion

I. Background

A. Agents and Managers

In Hollywood, talent agents act as intermediaries between the buyers and sellers of talent. (Regulation of Attorneys, supra, 80 Cal. L.Rev. at p.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Kim v. Airstream
California Court of Appeal, 2025
SP Investment Fund I v. Walsh CA2/5
California Court of Appeal, 2025
Pardoe v. Salazar CA2/5
California Court of Appeal, 2025
Jose Ronderos v. Usf Reddaway, Inc.
114 F.4th 1080 (Ninth Circuit, 2024)
Ramirez v. Charter Communications, Inc.
California Supreme Court, 2024
Whitlach v. Premier Valley, Inc.
California Court of Appeal, 2022
Whitlach v. Premier Valley CA5
California Court of Appeal, 2022
Mitracos v. City of Tracy CA3
California Court of Appeal, 2022
Brown v. Madison Reed, Inc.
N.D. California, 2021
Villanueva v. Fidelity National Title Company
California Supreme Court, 2021
Bacall v. Shumway
California Court of Appeal, 2021
Bacall v. Shumway CA2/8
California Court of Appeal, 2021

Cite This Page — Counsel Stack

Bluebook (online)
174 P.3d 741, 70 Cal. Rptr. 3d 727, 42 Cal. 4th 974, 2008 Cal. LEXIS 805, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marathon-entertainment-inc-v-blasi-cal-2008.