Metro-Goldwyn-Mayer Inc. v. Scheider

75 Misc. 2d 418, 347 N.Y.S.2d 755, 1972 N.Y. Misc. LEXIS 2342
CourtNew York Supreme Court
DecidedMay 12, 1972
StatusPublished
Cited by12 cases

This text of 75 Misc. 2d 418 (Metro-Goldwyn-Mayer Inc. v. Scheider) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metro-Goldwyn-Mayer Inc. v. Scheider, 75 Misc. 2d 418, 347 N.Y.S.2d 755, 1972 N.Y. Misc. LEXIS 2342 (N.Y. Super. Ct. 1972).

Opinion

Arnold L. Fein, J.

Metro-Goldwyn-Mayer, Inc. (MGM) sues Roy Scheider (Scheider), and Roy Scheider Productions, Inc. (Productions), for an injunction enjoining said defendants from entering into agreements which would require Scheider to perform services for any third party at a time when he is obligated to render services to plaintiff, and enjoining Scheider from rendering services to any third party at a time when he is obligated to render services to plaintiff, and for damages for Scheider’s refusal to render services to plaintiff.

MGM is a film producer, under agreement with American Broadcasting Company (ABC), pursuant to which MGM has produced a pilot film entitled “ Munich Project ”. A pilot film is a picture produced for a television network as a demonstration picture with the hope that the network will order a television series based upon the pilot film. During the pendency of this action, ABC has exercised its option, requiring MGM to produce and deliver to ABC a television series based upon the pilot film, for broadcast on the ABC network, beginning in September, 1972. On Sunday, April 30,1972, during the course of the trial, ABC showed the pilot film on its TV stations.

On September 30, 1971, after meetings and telephone conver7 sations among MGM and ABC representatives, Scheider, and Scheider’s agent Joan Scott (Scott), it was agreed: (1) Scheider would appear in and be paid $20,000 for making the pilot film; (2) Scheider would be paid, per episode, for his services in any TV series that might result from the pilot: first year, $5,000 per episode; second year, $6,000 per episode; third year, $7,000 per episode; fourth year, $9,500 per episode; fifth year, $11,500 per episode; (3) if the pilot film resulted in a television series, MGM would have a one-year option from the date of completion of the pilot for Scheider’s services for such series.

Left unresolved in these conversations was Scheider’s billing. At that time Scheider was a relatively unknown actor, who had [420]*420played a major role in a then unreleased picture, The French Connection ’ ’ for which he has since gained acclaim and a nomination for an academy award as best supporting actor. A preview of that film had been seen by ABC and MGM personnel at that time. Within a few days, it was agreed that Scheider would have second star billing in the pilot and first star hilling in the series, should there be a series. These understandings were not reduced to writing, it being agreed that further terms would be wofked out between Scheider’s attorney and the attorneys for MGM.

On this basis, on or about October 6,1971, Scheider proceeded to Munich, Germany, where, over a six weeks’ period, the pilot was filmed. Between that time and up to on or about February 17, 1972, there were negotiations between Scheider’s attorney and the attorneys for MGM. On or about February 15, 1972, MGM’s attorneys and Scheider’s' attorney had agreed on all hut one of the terms of the proposed agreement in substance, although the language of some agreed upon provisions remained to he drafted. There was disagreement as to the starting date, the date on which Scheider would he required to report to start filming the series. In the conversations between Scott and the .MGM representatives, no starting date had been discussed or fixed and at the beginning of the negotiations there was no such discussion. Sometime in late October or early November, 1971, in a telephone conversation between Frederick C. Houghton (Houghton), MGM’s attorney, and Daniel Kossow (Kossow), Scheider’s attorney, the question of a starting date was first raised.

Kossow pointed out that MGM’s one-year option on Scheider’s services might interfere with or prevent Scheider’s acceptance of other performing assignments for 12 months. Houghton testified that he told Kossow that, if ABC did not exercise its option for a September, 1972 air date, MGM would not require Scheider to report for filming until November 1, 1972.

Kossow testified that he understood Houghton to say that November 1, 1972, was an outside date before which Mr. Scheider would not be required to render services.” Kossow testified that on this basis he told Houghton, he had a deal ”, and that he so advised Scheider some time later. However, it is conceded that in subsequent conversations and correspondence with Houghton during the negotiations there was reference to earlier start dates, so that Scheider would have an opportunity to do other work without jeopardizing MGM’s network delivery schedule, should ABC exercise its option for a Sep[421]*421tember, 1972 air date. All parties understood that if ABC exercised its option for a September, 1972 air date for the series, filming would have to begin in the spring of 1972. There were similar discussions between Kossow and Thomas J. Robinson (Robinson), another MGM attorney. In these various conversations and communications, the dates discussed were April and May, 1972 dates, and also June 5,1972.

. It is the custom and practice of the industry that when a pilot is filmed in the fall of the year and shown to the network during the winter, the ¡network has the option for a series to be shown beginning in September of the following year. In such event, filming of the series by the producer must begin in the spring, April or May, or at the latest, early June. If the network determines to show the series beginning in January or February of the next year, a so-called midyear showing, filming of the series takes place in the late fall. It is also the custom and practice that the producing company’s option entitles it to require the principal actors in the pilot to perform in the series, consistent with the network’s option to require the producer to produce and deliver a TV series based upon the pilot.

It is undisputed that all of the parties were aware of these customs and practices, and that the ABC-MGM agreement was consistent therewith.

On or about February 17, 1972, Kossow advised MGM that, since MGM had refused to agree to a November 1,1972 starting date for Scheider, Scheider would not perform in the series and considered that he had no further obligation to MGM, either to negotiate or perform. No written contract was ever executed.

ABO has exercised its option calling upon MGM to produce a series of eight episodes for air dates commencing September, 1972. MGM has exercised its option requiring Scheider to report on or before June 5, 1972, for filming the series. Scheider has stated that he will not do so.

• At issue is whether the terms agreed upon were sufficient to support a finding that the parties made an agreement enforceable under the Statute of Frauds or otherwise.

Whether the terms agreed between Scott and MGM were sufficient to establish a contract, is not free from doubt. There was much testimony on both sides as to the custom and practice of the industry to enter into binding oral arrangements on the basic or essential terms under which a performer will render services in making a pilot film, and for negotiation of a formal contract to continue during the period the actor is performing. There was also testimony as to the custom and practice of embodying [422]*422such terms in a written “ Outline Deal Memo ”, utilized with respect to Richard Basehart, the other principal actor in the pilot.

There was disagreement as to what terms are considered basic or essential.

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75 Misc. 2d 418, 347 N.Y.S.2d 755, 1972 N.Y. Misc. LEXIS 2342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metro-goldwyn-mayer-inc-v-scheider-nysupct-1972.