Scott Eden Management v. Kavovit

149 Misc. 2d 262, 563 N.Y.S.2d 1001, 1990 N.Y. Misc. LEXIS 632
CourtNew York Supreme Court
DecidedDecember 3, 1990
StatusPublished
Cited by5 cases

This text of 149 Misc. 2d 262 (Scott Eden Management v. Kavovit) 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
Scott Eden Management v. Kavovit, 149 Misc. 2d 262, 563 N.Y.S.2d 1001, 1990 N.Y. Misc. LEXIS 632 (N.Y. Super. Ct. 1990).

Opinion

OPINION OF THE COURT

Matthew F. Coppola, J.

In this case of first impression, an infant actor has disaffirmed a personal services contract. He thereby seeks to avoid [263]*263responsibility to his manager for commissions due in the future on income from performance contracts already obtained for him by the manager.

The salient facts are not in dispute. In 1984, when defendant Andrew M. Kavovit was 12 years of age, he and his defendant parents entered into a contract with plaintiffs (Scott Eden) whereby Scott Eden became the exclusive personal manager to supervise and promote Andrew’s career in the entertainment industry. This agreement ran from February 8, 1984 to February 8, 1986 with an extension for another three years to February 8, 1989. It provided that Scott Eden was entitled to a 15% commission on Andrew’s gross compensation. "With respect to contracts entered into by [Andrew] * * * during the term of this agreement * * * [Scott Eden] shall be entitled to [its] commission from the residuals or royalties of such contracts, the full term of such contracts, including all extensions or renewals thereof, notwithstanding the earlier termination of this agreement.”

In 1986, Andrew signed an agency contract with the Andreadis Agency, a licensed agent selected by Scott Eden pursuant to industry requirements. This involved an additional 10% commission. Thereafter, Andrew signed several contracts for his services. The most important contract, from a financial and career point of view, secured a role for Andrew on "As the World Turns,” a long-running television soap opera. Income from this employment contract appears to have commenced on December 28, 1987 and continues through December 28, 1990, with a strong possibility for renewal.

One week before the contract with Scott Eden was to expire, Andrew’s attorney notified Scott Eden that his "clients hereby disaffirm the contract on the grounds [sic] of infancy”. Up until then, the Andreadis Agency had been forwarding Scott Eden its commissions, but by letter of February 4, 1989, Andrew’s father, David Kavovit, advised Andreadis that Andrew’s salary would go directly to Andrew and that he would send Andreadis its 10%. Needless to say, no further commissions were sent to Scott Eden.

The complaint seeks money damages for (1) all sums due plaintiffs for commissions relating to Andrew’s personal appearances prior to February 8, 1989, the date of disaffirmance, (2) all sums due plaintiff for commissions with respect to contracts entered into by Andrew in the entertainment or promotion fields during the term of his contract with plain[264]*264tiffs, "i.e., commissions from the residuals or royalties of such contracts — the full term of such contracts — including all extensions or renewals thereof’, and (3) $50,000 for tortious interference with the relationship between plaintiff and the Andreadis Agency.

Issue was joined and examinations before trial were held. Defendants have now brought this motion for summary judgment upon the ground that no genuine, triable issues exist.

An infant’s contract is voidable and the infant has an absolute right to disaffirm (General Obligations Law § 3-101; Continental Natl. Bank v Strauss, 137 NY 148; Casey v Kastel, 237 NY 305; Joseph v Schatzkin, 259 NY 241; and see, General Obligations Law § 3-107 [with regard to the absence of parental liability either as parties or guarantors]). This aspect of the law of contracts was well entrenched in the common law as early as the 15th century (2 Williston, Contracts § 223 [3d ed]). In bringing this action, and defending the motion, plaintiffs fully recognize the principle of law involved here and in no way challenge the infant’s right to disaffirm. Rather, plaintiffs rely upon a corollary to the main rule, which also evolved early in the common law "After disaffirmance, the infant is not entitled to be put in a position superior to such a one as he would have occupied if he had never entered into his voidable agreement. He is not entitled to retain an advantage from a transaction which he repudiates. 'The privilege of infancy is to be used as a shield and not as a sword.’ (Kent, vol. 2, p. 240; Rice v. Butler, 150 N. Y. 578.)” (Joseph v Schatzkin, 259 NY 241, 244, supra.)

As stated differently by the same court in an earlier case involving an infant’s disaffirmance: "The theory of a rescission is that the party proceeded against shall be restored to his original position. The plaintiff cannot rescind if he retains in himself or withholds through another any fruit of the contract.” (Francis v New York & Brooklyn El. R. R. Co., 108 NY 93, 97.)

The restoration of consideration requirement found voice in CPLR 3004 which states that the infant need not tender restoration of benefits received prior to disaffirmance "but the court may make a tender of restoration a condition of its judgment, and may otherwise in its judgment so adjust the equities between the parties that unjust enrichment is avoided.” (See, 2 Williston, Contracts § 238 [3d ed] [especially n 9, as to the apparent historical setting of this provision].)

[265]*265The restoration of consideration principle, as interpreted by the courts, has resulted in the infant being responsible for wear and tear on the goods returned by him (Myers v Hurley Motor Co., 273 US 18 [automobile]; Rice v Butler, 160 NY 578 [bicycle]; Scalone v Talley Motors, 3 AD2d 674 [automobile]). In the event that the minor cannot return the benefits obtained, he is effectively precluded from disaffirming the contract in order to get back the consideration he has given. In Vichnes v Transcontinental & W. Air (173 Misc 631) the infant paid the air fare from New York to Los Angeles. On returning to New York she demanded the return of her money. Appellate Term granted summary judgment to defendant because "there is no basis for rescission here in view of the concession that the reasonable value of the transportation was the sum paid by plaintiff” (supra, at 631).

The parties have not cited, nor has the court found, a case dealing with the exact issue at bar, i.e., whether disaffirmance may void the contractual obligation to pay agents’ commissions without any concomitant exchange being made. However, an analogy may be drawn from the case of Mutual Milk & Cream Co. v Prigge (112 App Div 652). There, a minor had entered the employ of the plaintiff as a milk wagon driver and had signed a contract which included a restrictive covenant wherein the minor agreed not to solicit plaintiffs customers within three years after leaving plaintiffs employ. Several months after entering into the contract, the minor quit, pursuant to the terms of the contract, but then went to work for plaintiffs rival and solicited business from plaintiff’s customers.

The Appellate Division affirmed the issuance of an injunction against the minor, who had pleaded infancy in avoidance of the contractual obligations. The court considered that the issue was not one of liability of an infant for a breach of his contract, but whether an infant should be allowed to repudiate his contract without restoring what he had received and, if restoration could not be made, without being enjoined from making use of the information he had gained from his employment by the plaintiff to the latter’s damage.

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Cite This Page — Counsel Stack

Bluebook (online)
149 Misc. 2d 262, 563 N.Y.S.2d 1001, 1990 N.Y. Misc. LEXIS 632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-eden-management-v-kavovit-nysupct-1990.