Waisbren v. Peppercorn Productions, Inc.

41 Cal. App. 4th 246, 48 Cal. Rptr. 2d 437, 95 Cal. Daily Op. Serv. 9734, 95 Daily Journal DAR 16899, 1995 Cal. App. LEXIS 1237
CourtCalifornia Court of Appeal
DecidedDecember 20, 1995
DocketB088448
StatusPublished
Cited by25 cases

This text of 41 Cal. App. 4th 246 (Waisbren v. Peppercorn Productions, Inc.) 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
Waisbren v. Peppercorn Productions, Inc., 41 Cal. App. 4th 246, 48 Cal. Rptr. 2d 437, 95 Cal. Daily Op. Serv. 9734, 95 Daily Journal DAR 16899, 1995 Cal. App. LEXIS 1237 (Cal. Ct. App. 1995).

Opinion

Opinion

MASTERSON, J.

In the entertainment industry, talent agents and personal managers perform valuable services for their clients. Talent agents, *250 who seek to procure employment for artists, must be licensed under the Talent Agencies Act (Lab. Code, §§ 1700-1700.47). In contrast, personal managers, who advise and direct artists in the development of their careers, are not subject to any licensing requirements.

This appeal presents the question of whether a personal manager must be licensed under the Talent Agencies Act if he devotes an incidental portion of his business to the function of a talent agent—procuring employment for an artist. We conclude that he must be so licensed.

Background

Defendant Peppercorn Productions, Inc. (Peppercorn) is a California corporation specializing in the design and creation of puppets for use in the entertainment industry and advertising media. Peppercorn has also been involved in producing various television projects. Defendants David Pavelonis and Terrie Pavelonis are officers of Peppercorn.

In 1982, plaintiff Brad Waisbren agreed to promote Peppercorn. From 1982 through 1988, he performed numerous services for the company pursuant to an oral agreement. Among other things, Waisbren assisted in project development, managed certain business affairs, supervised client relations and publicity, performed casting duties, advised Peppercorn regarding the selection of artistic talent, coordinated production, and handled office functions, such as the hiring and firing of personnel. Occasionally, Waisbren procured employment for Peppercorn, but his efforts in that regard were incidental to his other responsibilities. For his services, Waisbren was to receive 15 percent of Peppercorn’s profits. 1

In 1988, Peppercorn terminated its relationship with Waisbren. In 1990, he filed suit against defendants, alleging that they had not paid him in accordance with the parties’ agreement. By way of a second amended complaint filed in 1991, Waisbren alleged six causes of action, all of which sought relief based on an alleged breach of the agreement. 2

In March 1994, defendants moved for summary judgment on the ground that the parties’ agreement was void because Waisbren had performed the *251 duties of a talent agent—by procuring employment for Peppercorn—without first obtaining the necessary license under the Talent Agencies Act. In opposing summary judgment, Waisbren admitted that he had no such license. However, he argued that a license was unnecessary since his procurement activities were minimal and merely incidental to his other responsibilities. 3 In May 1994, the trial court granted defendants’ summary judgment motion. Waisbren filed a timely appeal from the judgment.

Discussion

Summary judgment is appropriate if all the papers submitted show that there is no triable issue as to any material fact and that the moving party is entitled to judgment as a matter of law. (Code Civ. Proc., § 437c, subd. (c).)

“A defendant seeking summary judgment has met the burden of showing that a cause of action has no merit if that party has shown that one or more elements of the cause of action cannot be established [or that there is a complete defense to that cause of action], . . . Once the defendant’s burden is met, the burden shifts to the plaintiff to show that a triable issue of fact exists as to that cause of action. ... In reviewing the propriety of a summary judgment, the appellate court independently reviews the record that was before the trial court. . . . We must determine whether the facts as shown by the parties give rise to a triable issue of material fact. ... In making this determination, the moving party’s affidavits are strictly construed while those of the opposing party are liberally construed.” (Hanooka v. Pivko (1994) 22 Cal.App.4th 1553, 1558 [28 Cal.Rptr.2d 70], citations omitted; see also Code Civ. Proc., § 437c, subd. (o)(2).) We accept as undisputed facts only those portions of the moving party’s evidence that are not contradicted by the opposing party’s evidence. (Kelleher v. Empresa *252 Hondurena de Vapores, S.A. (1976) 57 Cal.App.3d 52, 56 [129 Cal.Rptr. 32].) In other words, the facts alleged in the declarations of the party opposing summary judgment must be accepted as true. (Zeilman v. County of Kern (1985) 168 Cal.App.3d 1174, 1179, fn. 3 [214 Cal.Rptr. 746].)

With these principles in mind, we turn first to the question of whether Waisbren had to be licensed as a talent agent, even though his efforts to procure employment for Peppercorn were minimal or incidental in relation to his other activities. Finding that a license was necessary, we then examine whether the trial court applied the proper remedy for Waisbren’s unlicensed conduct (i.e., declaring the parties’ agreement void and precluding Waisbren from seeking any recovery under it).

A. The Licensing Scheme

The Talent Agencies Act (the Act) provides that “[n]o person shall engage in or carry on the occupation of a talent agency without first procuring a license therefor from the Labor Commissioner.” (Lab. Code, § 1700.5.) A “talent agency” is “a person or corporation who engages in the occupation of procuring, offering, promising, or attempting to procure employment or engagements for an artist or artists.” (Id. § 1700.4, subd. (a).) 4 An “artist,” in turn, includes a broad spectrum of persons and entities working in the entertainment field. 5

Unlike a talent agent, a “personal manager” is not covered by the Act or any other statutory licensing scheme. (Yanover & Kotler, Artist/Management Agreements and the English Music Trilogy: Another British Invasion? (1989) 9 Loy. Ent. L.J. 211, 211-214.) “Artists typically engage personal managers in addition to talent agents. ..." [^] ... In essence, ‘the primary function of the personal manager is that of advising, counselling, directing and coordinating the artist in the development of the artist’s career.’ The manager’s task encompasses matters of both business and personal significance. As business advisors, they might attend to the artist’s finances, and they routinely organize the economic elements of the artist’s personal and creative life necessary to bring the client’s product to fruition. The personal *253 manager frequently lends money to the neophyte artist, thereby speculating on a return from the artist’s anticipated future earnings. The manager also serves as a liaison between the artist and other personal representatives, arranging their interactions with, and transactions on behalf of, the artist. On a more personal level, the manager often serves as the artist’s confidant and alter ego. . . .

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Bluebook (online)
41 Cal. App. 4th 246, 48 Cal. Rptr. 2d 437, 95 Cal. Daily Op. Serv. 9734, 95 Daily Journal DAR 16899, 1995 Cal. App. LEXIS 1237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waisbren-v-peppercorn-productions-inc-calctapp-1995.