Olinick v. BMG ENTERTAINMENT

42 Cal. Rptr. 3d 268, 138 Cal. App. 4th 1286, 2006 Daily Journal DAR 5090, 2006 Cal. Daily Op. Serv. 3497, 2006 Cal. App. LEXIS 588, 98 Fair Empl. Prac. Cas. (BNA) 182
CourtCalifornia Court of Appeal
DecidedApril 27, 2006
DocketB179478
StatusPublished
Cited by60 cases

This text of 42 Cal. Rptr. 3d 268 (Olinick v. BMG ENTERTAINMENT) 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.

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Olinick v. BMG ENTERTAINMENT, 42 Cal. Rptr. 3d 268, 138 Cal. App. 4th 1286, 2006 Daily Journal DAR 5090, 2006 Cal. Daily Op. Serv. 3497, 2006 Cal. App. LEXIS 588, 98 Fair Empl. Prac. Cas. (BNA) 182 (Cal. Ct. App. 2006).

Opinion

Opinion

KLEIN, P. J.

Plaintiff and appellant Martin Olinick (Olinick) appeals an order granting a motion by defendants and respondents BMG Music (BMG) et al. to stay the action on the ground of inconvenient forum. (Code Civ. Proc., § 418.10.) 1 The trial court stayed the action for six months, pending Olinick’s filing suit in New York.

*1290 The essential issues presented are whether the instant action is within the ambit of the employment agreement’s forum selection and choice of law provisions, which require this dispute to be tried in New York pursuant to New York law, and if so, whether those contractual provisions are unenforceable as against public policy.

We conclude Olinick’s statutory cause of action for age discrimination under the Fair Employment and Housing Act (FEHA) (Gov. Code, § 12940) as well as his common law cause of action for wrongful discharge in violation of the public policy against age discrimination are subject to the agreement’s forum selection and choice of law provisions, and that those provisions do not violate California public policy. Accordingly, the order enforcing the forum selection and choice of law provisions is affirmed.

FACTUAL AND PROCEDURAL BACKGROUND

1. Facts.

Olinick, a lawyer who is admitted to both the New York and California bars, began working for BMG’s predecessor, RCA Records, in New York in 1971. In 1977, Olinick and his family relocated to the West Coast. In 1986, BMG acquired RCA. BMG is a New York general partnership whose worldwide headquarters and principal place of business is located in New York City. Olinick ultimately attained the level of senior vice-president at BMG, with a salary of over $300,000 per year.

In 1991, 1994 and 1997, Olinick and BMG entered into written three-year employment agreements.

a. The instant employment agreement.

On November 10, 2000, Olinick and BMG executed the subject eight-page employment agreement covering the period between July 1, 2000, and October 31, 2004 (the Agreement). The Agreement was the product of nine months of contract negotiations, conducted almost entirely in New York. In the negotiations, Olinick was represented by a New York-based music industry law firm and BMG was represented by its New York-based in-house counsel and executives. The parties exchanged more than 10 drafts before coming to an agreement.

*1291 The Agreement contains many of the usual provisions, including duties, the term of employment, compensation, and benefits.

The Agreement provided Olinick could be terminated without cause, provided that certain compensation was paid to him. 2 The Agreement also gave BMG the right to terminate Olinick for cause, and specified the compensation in that situation as well. 3

The provision which is the focus of this controversy is paragraph G (Paragraph G), which is both a choice of law provision and a forum selection provision. Paragraph G states: “This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York, without regard to conflicts of laws. The parties agree to the exclusive jurisdiction and venue of the Supreme Court of the State of New York for New York County and/or the United States District Court for the Southern District of New York for the resolution of all disputes arising under this Agreement.” Thus, the first sentence of Paragraph G provides for the application of New York law. The second sentence of Paragraph G selects New York as the forum. 4

b. Olinick’s termination.

On March 26, 2003, after 32 years of employment with RCA/BMG, Olinick was terminated. At the time, he was 59 years of age.

*1292 BMG asserts it terminated Olinick as part of a wide-ranging reorganization following an acquisition, and that it was entitled to do so pursuant to its right under the Agreement to terminate Olinick’s employment without cause.

Olinick, in turn, contends his age was a motivating factor in BMG’s decision to terminate him, and that he was replaced by a substantially younger, less qualified attorney.

2. Proceedings.

Olinick filed a charge with the California Department of Fair Employment and Housing, alleging age discrimination in violation of FEHA. 5 He received a right-to-sue letter.

On March 15, 2004, Olinick filed a complaint in the Los Angeles Superior Court alleging two causes of action predicated on the FEHA: (1) a statutory claim under FEHA for age discrimination; and (2) a common law tort claim for wrongful termination in violation of California public policy, namely, the public policy against age discrimination as embodied in the FEHA.

On May 4, 2004, BMG filed a motion to stay or dismiss the action on the ground of inconvenient forum. BMG asserted California was an inconvenient forum because the dispute between Olinick and BMG was governed by a written employment contract that contains a forum selection clause requiring that any action between Olinick and BMG be brought in New York. BMG asserted a reasonable basis exists for enforcing the forum selection clause because New York is: BMG’s principal place of business; where the agreement was negotiated and entered into and where the attorneys who represented Olinick in connection with the Agreement are located; where Olinick regularly traveled in order to perform his duties; and where BMG made the decision to exercise its rights under the Agreement, and where all its witnesses and documents are located.

BMG further argued the New York forum is available and can accomplish substantial justice in that under the New York City Human Rights Law, which bans age discrimination, a prevailing plaintiff is entitled to economic, compensatory and punitive damages as well as attorney fees, and there is no reason to believe New York courts are less likely than California counts to enforce antidiscrimination laws.

*1293 In opposing the motion, Olinick argued BMG failed to meet its burden to show California is a seriously inconvenient forum; he lived and worked in California; one of the BMG defendants is a California citizen; many of the percipient witnesses are in California; and he presented age discrimination claims based purely on violations of California law. Further, dismissal would be improper because California has an interest in protecting the rights of its citizens, and a stay is only proper if his rights would be protected under New York law, which is not the case here because his age discrimination claims are time-barred under New York law.

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42 Cal. Rptr. 3d 268, 138 Cal. App. 4th 1286, 2006 Daily Journal DAR 5090, 2006 Cal. Daily Op. Serv. 3497, 2006 Cal. App. LEXIS 588, 98 Fair Empl. Prac. Cas. (BNA) 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olinick-v-bmg-entertainment-calctapp-2006.