Recently in Breach of Contract Category

2011 Labor and Employment Law in Review: GINA, Charlie Sheen, Walmart v. Dukes

January 16, 2012,

In this month's Costa Mesa, California employment lawyers newsletter, Howard Law attorney Vincent Howard reviewed key California and federal labor and employment law developments from 2011--hot topics that our Riverside, California employment lawyers blog covered over the course last year, including GINA's final regulations, the Supreme Court's ruling in the Walmart v. Dukes sex-discrimination lawsuit, and Charlie Sheen's wrongful termination lawsuit against Warner Brothers and Chuck Lorre, among others.

GINA's Final Regulations Take Effect
After the U.S. Equal Employment Opportunity Commission (EEOC) voted unanimously in late 2010, the final regulations that implement the employment provisions of GINA (Title II), the Genetic Information Nondiscrimination Act of 2008, took effect in early 2011. Title II of GINA represents the first extension of the EEOC's jurisdiction since the passing of the Americans with Disabilities Act of 1990 (ADA), and makes it illegal for employers to engage in genetic testing or discriminate against employees based on genetic make-up.

Third Party Retaliation Limits Case Decided by Supreme Court
In January of last year, the Supreme Court ruled unanimously on Thompson v. North American Stainless, a retaliation ban limits case, stating that under Title VII of the Civil Rights Act of 1964, a company can be sued for retaliation by terminating an employee's fiancée. The case arose after a former female engineer with North American Stainless, who was engaged to a metallurgic engineer at the company--claimed to have experienced gender-based discrimination and filed a complaint with the EEOC. The female engineer's fiancée was fired three weeks after her EEOC sex-discrimination complaint was revealed, whereupon the fiancée filed his own third-party retaliation claim. As Vincent Howard reported in our California employment attorney blog, the highest court decided that third-party victims of retaliation are covered by federal protections.

Charlie Sheen Sues for Millions
One of the highest-profile employment lawsuits from 2011 that garnered massive media attention was filed by Hollywood actor Charlie Sheen in March, who sued Warner Brothers Studio and Chuck Lorre, the executive producer of Two and a Half Men, in a $100 million dollars lawsuit--for wrongful termination, breach of contract, retaliation and other Los Angeles, California labor and employment charges. Sheen's contract was reportedly terminated for health issues that allegedly led to his inability to perform his duties for the television show, for public tirades against Lorre, and for alleged substance abuse and destructive behavior. Sheen and Warner Brothers reportedly finalized a multi-million dollar settlement in September.

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Former NBA Superstar Shaq Sues Former Employee Over Stolen Emails

November 9, 2011,

Legendary Los Angeles Lakers superstar Shaquille O'Neal has filed an employment lawsuit this month against a former information technology employee, for invasion of privacy and allegedly selling his personal emails on the open market--and therefore damaging his reputation.

According to the lawsuit, that our Santa Ana employment lawyers have been following, O'Neal hired Shawn Darling in 2007 and paid him around $150 per hour as an Information Technology specialist, to set up his audio and computer systems, keep his electronic communications, and to create and register a personal domain name for the former NBA player. O'Neal claims that he hired the man unaware of the fact that he had been convicted of a bank fraud felony.

While performing his tasks, Darling reportedly requested and got all of O'Neal's passwords, which he allegedly used outside of his job, in order to access Shaq's personal emails. Darling is being accused of selling O'Neal's personal information to other people as well as Internet sites, which then published articles that reportedly damaged Shaq's reputation.

In August of 2010, according to the Hollywood Reporter, Darling's attorney threatened O'Neal, with the continued use of the electronic email communications if he didn't fork over $12 million--to which Shaq reportedly refused. Darling then filed a lawsuit against O'Neal, accusing him of being the computer hacker--by hacking into voicemails, trying to frame Darling for a criminal offense, and trying to erase digital evidence of affairs.

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'Happy Days' Television Stars Sue CBS/Paramount for $10 Million

October 25, 2011,

In a recent Hollywood employment lawsuit development that our Irvine, California labor and employment attorneys have been watching, cast members from the legendary television show "Happy Days" have suffered a reported setback in their current $10 million lawsuit against CBS/Paramount over merchandising revenue from the comedy sitcom.

According to the Hollywood Reporter, the cast sued CBS in April of this year, claiming that they were never paid for years of home video releases and licensed show merchandising that used their images and voices --during the run of the series, that lasted from 1974 until 1984 and has continued to run for years in television syndication. They are accusing CBS/Paramount of bad business practices and breach of contract.

The lawsuit claims that although they all received different salaries, they had the same contracts in regard to merchandising--each actor was to receive a percentage of the net proceeds if images of them were used in a group, after the studio took its handling fee, which was a reported 50% off the top.

The employment lawsuit reportedly began after an actor from the show saw their images on a casino's slot machines. The same actor had also noticed that starting in 2004, the show had been repackaged into four different DVD box sets with pictures of the cast on the boxes and inside the DVD material. The lawsuit is accusing CBS/Paramount of continuing to market the brand to merchandisers, selling everything from t-shirts to coffee mugs with cast pictures, with never intending to pay them for merchandise with their images.

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Hollywood Star Charlie Sheen and Warner Brothers Settle Multimillion Dollar Lawsuit

September 30, 2011,

In a recent Los Angeles, California employment lawyers blog, our attorneys discussed the Los Angeles employment lawsuit filed by television and movie star Charlie Sheen against Warner Brothers Studio and Chuck Lorre, the Executive Producer of the popular television series Two and a Half Men, that featured Sheen as a central character until this spring.

According to news reports from last week, Sheen and Warner Brothers are finalizing the multimillion-dollar settlement that will end the very public battle that has continued over the past few months--after Sheen hurled public insults against Lorre for being fired from the show, leading to the cancellation of Two and a Half Men for the rest of the season.

Warner Brothers stated that Sheen's contract was terminated after health issues led to his inability to perform his duties as a performer for the show. He was reportedly fired in March for his failure to report to set and perform due to drug usage, for trashing a hotel room, and for his public statements against Chuck Lorre.

Sheen sued Warner Brothers and Lorre in March of this year, claiming that his television contract termination came from Lorre in order to serve Lorre's self-interest and ego--and accused Lorre of breach of contract, breach of the implied covenant of good faith and fair dealing, retaliation and other employment charges. The lawsuit asked for $100 million in punitive damages.

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'Gossip Girl' Star Sued By Her Mother in $3M Breach-of-Contract Lawsuit

September 9, 2011,

In the unusual and ongoing Hollywood employment lawsuit that our Riverside employment attorneys have been following, Leighton Meester, the star of the hit television show Gossip Girl, who recently filed a lawsuit against her mother, Constance Meeester, is trying to have her mother's $3 million breach-of-contract counter-lawsuit dismissed by a judge.

According to the Hollywood Reporter, the 25-year old Gossip Girl actress reportedly sued her mother Constance in July, claiming that the money she sent her family on a monthly basis to provide for her brother's medical attention was misused by her mother. Leighton claimed in the suit that there was no contractual obligation for her to send them the $7,500 per month, but that she wanted to provide medical care for her brother after his brain surgery last May. The money was reportedly used instead to further Constance's plastic surgery and cosmetic procedures.

Constance Meester reportedly responded by filing a counter-lawsuit a few days later alleging that Leighton had breached various contract agreements totaling $3 million, and that as her manager, she sacrificed her own personal happiness to support her daughter's acting career. According to Constance's complaint, she was allegedly taken advantage of by Leighton, claiming a breach of management, support and settlement agreements--all of which Leighton claims are non-existent agreements.

Leighton reportedly states that the document evidence used in her mother's lawsuit was only an employment agreement allowing Leighton's acting services to be legitimized by her corporation, Intentional Productions, Inc. (IPC). The document states that Leighton is to be given all the income from her activities, only allowing for certain things to be deducted by the corporation, like agent commissions, manager's fees, union dues and health contributions--none of which Leighton claim provided Constance with any money, as she had no authority over the income.

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Mattel Ordered by Judge to Pay $310 Million in Bratz vs. Barbie Legal Battle

August 15, 2011,

Our Newport Beach, California employment lawyer blog recently discussed the long-running legal battle between California-based Mattel Inc., the world's largest toymaker, and MGA Entertainment, a small company responsible for making the line of Bratz dolls who was accused by Mattel in 2005 of stealing a key Mattel employee and intellectual property.

In a 2008 decision, MGA was reportedly ordered to pay Mattel $100 million, but a federal appeals court threw out the ruling out last year, stating that Mattel had not proven the copyright infringement claims.

The case became more complex when MGA then accused Mattel of misappropriating trade secrets about the Bratz doll line, and in April of this year, Mattel was found guilty of stealing trade secrets by a federal jury, wherein MGA Entertainment was awarded $88.5 million in damages, with the chance of receiving more monetary damage awards.

According to the Los Angeles Times, earlier this month, a federal judge demanded that Mattel compensate MGA Entertainment over $309 million in monetary damages and other costs and fees in the ongoing legal argument over the Bratz doll line. Mattel's request for a new trial was also rejected.

The decision, made by U.S. District Judge David O. Carter, awarded MGA $85 million in punitive damages, reducing the jury's original $88.5 million award in April due to a mathematical error. The judge also awarded MGA $2.5 million in lawyer's costs and fees for its claims of trade secret theft against Mattel. MGA's chief executive, Isaac Larian, was also awarded $137.4 million in attorneys' fees and costs for having to defend his company against Mattel's original claims of copyright infringement, contractual relations and other copyright allegations--bringing the total award for MGA to $309.9 million.

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Beyoncé Sued for $100M by Video Game Company

May 9, 2011,

The multitalented entertainer, Beyoncé, was reportedly hit with a $100 million lawsuit last month, by a video game company who accused the singer and actress of destroying Christmas by breaching a contract and reneging on an agreement to develop a video game in her name last year.

According to the lawsuit, Gate Five, a software developer, is suing Beyoncé to cover lost investments after the star reportedly pulled out of an agreement in December of 2010 to create a dance video game entitled, "Starpower, Beyoncé." The lawsuit claimed that after Beyoncé had already negotiated a hefty compensation deal in her contract, she demanded entirely new compensation terms at a crucial moment in the game's development--the week before Christmas.

The lawsuit accuses the star of a bad faith breach of contract that destroyed the company's business and caused 70 employees to lose their jobs just before the holidays. The summons also reportedly claims that Beyoncé's demands were so outrageous that her father and then-manager Matthew Knowles, renounced them. Beyoncé has reportedly recently ended her managerial relationship with her father.

Our attorneys based in Orange County, California represent individuals with labor or employment issues. Contact us today for a free consultation about your California employment rights.

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Hollywood Actor Charlie Sheen Slaps Warner Bros. with $100M Lawsuit for Contract Termination

March 11, 2011,

Actor Charlie Sheen continued to make Hollywood headlines this week by filing a Los Angeles, California employment lawsuit yesterday against Warner Brothers Studio and Chuck Lorre, the executive producer of Two and a Half Men, a hugely successful television show that has starred Sheen since 2003.

Screen has held the celebrity spotlight in recent months, after rehab and hospital visits led to Two and a Half Men's hiatus in January. Last month, Warner Brothers canceled the hit television comedy for the rest of the season, reportedly after Sheen lashed out at Lorre with public verbal attacks.

According to reports that our San Bernardino County employment attorneys have been following, Sheen was fired on Monday, for committing a felony involving a "moral turpitude" which Warner Brothers claimed in a statement included trashing New York's Plaza Hotel, engaging in cocaine binges, failing to report to set and perform because drug usage, and for hurling recent public insults against the show's creator, Chuck Lorre.

Sheen claims that he has filed his employment lawsuit on behalf of the Two and a Half Men cast and crew, and is asking for $100 million in punitive damages.

The lawsuit states that Sheen's contract termination came from Lorre, in order to serve Lorre's ego and self-interest, making Sheen the scapegoat for his own conduct--taking money away from the dedicated cast and crew of the show by canceling the production. The lawsuit also accuses Warner Brothers and Lorre of breaching his contract, retaliation, and breach of the implied covenant of good faith and fair dealing, among other employment charges.

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Schwarzenegger Vetoes Two California Wage Theft Bills

November 24, 2010,

In a related blog, our Carson labor and employment attorneys discussed recent wage and hour legislature introduced by Congressman Phil Hare, called the Wage Theft Prevention and Community Partnership Act, aimed to fight the occurrence of wage theft in the workplace--where employees are being robbed of their hard earned wages by not being paid properly for their work.

In the State of California, Governor Schwarzenegger recently vetoed two bills that aimed to fight employers from engaging in wage theft. According to the Los Angeles Times, the first wage theft measure, supported by the California Rural Legal Assistance Foundation, would have penalized employers who neglect to pay workers all of their wages within 90 days after their employment ends, with a new misdemeanor crime. The second wage theft bill would have reportedly increased the maximum damage amount that an employee could receive in a wage-type legal issue or state enforcement action.

The bills were reportedly introduced after a UCLA study, that our Santa Ana labor and employment attorneys discussed in a recent blog, found that wage theft costs workers in Los Angeles County around $26 million every week. The groundbreaking study, released last year, found that workers in Los Angeles, Chicago and New York, experienced massive wage and hour law violations in low-wage industries. The UCLA study found that 15% of low-income worker's wages are taken from the workers each week.

Mark Schacht, the California Rural Legal Assistance Foundation's deputy director, stated that Schwarzenegger and his Chamber of Commerce allies know that these vetoes continue to defend the illegal practice of wage theft in California. In his messages about the vetoes, Schwarzenegger reportedly claimed that both bills were not needed.

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Lady Gaga Slapped with Breach of Contract Lawsuit and Fights Back

March 25, 2010,

In recent national news that our Southern California Employment Attorneys have been following, Lady Gaga, the hugely popular pop star, is being sued by her former business partner and ex-boyfriend, the songwriter and music producer Rob Fusari, for breach of contract and failure to pay royalties that he is allegedly owed.

Lady Gaga, also known as Stefani Germanotta, met Fusari in March 2006. Fusari claims in his lawsuit that he discovered Germanotta while looking for a strong female pop singer, and then proceeded to co-wrote songs with her, create her new look and help her get a record deal at Interscope--reshaping her career and even giving her the name Lady Gaga.

In the over $30 million lawsuit, Fusari claims that the Grammy award winning Gaga forced him out of her career while continuing her meteoric rise to record breaking success. The lawsuit claims that Fusari is owed royalties for creating the Lady Gaga moniker, and for co-writing songs on the popular album "The Fame." Fusari also accuses Gaga of breaching the contract that they agreed upon in 2006.

Lady Gaga responded to Fusari, by filing a countersuit, claiming that the 2006 contract she signed was illegal because it was created in manner that concealed its real purpose, which as her lawyer reportedly said, provided the defendants compensation that was unlawful for services rendered as employment agents who were unlicensed. She claims the contract was financially abusive and that Fusari took advantage of her inexperience of a fledgling pop star.

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Fired Game Makers Sue Activision for Breach of Contract

March 5, 2010,

As Los Angeles and Orange County Labor and Employment Attorneys, we have been following the recent news that video game makers Vince Zampella and Jason West are suing Activision Publishing, Inc. for breach of contract and wrongful termination.

West and Zampella are video game developers who produced the hugely successful Call of Duty, and Modern Warfare at the Encino, California-based company Infinity Ward, a studio they started in 2001. Activision reportedly bought Infinity Ward in 2003 for $5 million, and West and Zampella agreed to three-year employment contracts, as president and CEO.

After Infinity Ward's release of the hugely successful fourth game in the series, Call of Duty: Modern Warfare in 2008, Zampella and West reportedly extended their contract with Activision through 2011. The extension allegedly included additional royalties, other payments, and the right to control the company independently, with the right to creative control over any Call of Duty games that take place after the Vietnam War, or any Modern Warfare sequels.

According to the lawsuit, filed in Los Angeles Superior Court on Wednesday, West and Zampella were wrongfully terminated on Monday, a few weeks before being paid significant royalty payments that were pary of their contracts for the game Modern Warfare 2, that was released in November and has generated retail sales of more than $1 billion.

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Rather's Request for an Appeal Rejected by NY York State Supreme Court

January 13, 2010,

In a previous blog, our California Employment Lawyers reported on the high profile two-year Dan Rather employment lawsuit--in which Dan Rather, former CBS Evening News anchor, accused CBS network of breach of contract, fraud, breach of fiduciary duty, and ruining his reputation, after spending 44 years as an employee of CBS. The case was dismissed in September of last year, in the Appellate Division of the New York State Supreme Court, and Rather made plans to appeal.

Yesterday, New York's highest court denied Rather's request for an appeal, declining to hear the former CBS Anchor's motion to reinstate the $70 million lawsuit--leaving the dismissal of the case by the Manhattan appeals court from September intact, and marking a seeming end to the embittered and costly legal battle.

In the lawsuit, Rather claimed that CBS had breached his contract by not giving him enough broadcast time, after he was removed from news anchor in March 2005. Rather alleged that CBS set him up be the scapegoat for the controversial 60 Minutes broadcast from 2004, in which President George W. Bush's Vietnam War service the Texas Air National Guard questioned.

After the broadcast, Rather and CBS received criticism for the story, especially from conservative partisans who claimed that Rather was trying influence the presidential race from 2004. The authenticity of the documents was questioned, CBS conducted an internal investigation, and determined that the story was inaccurate. Rather was forced to apologize for the journalistic errors. The episode was called "Rathergate," by the media, and according to Rather the experience cost him substantial financial loss, as well as damage to his reputation. Bush won his second term as President of the United States two months later.

According to the Los Angeles Times, Rather's decision to sue CBS in 2007 caused strain in his professional relationships, and he received journalistic criticism for trying to pass blame for the inaccuracy of the 60 Minutes broadcast that had not been fully researched. Rather clams to have made a career out of fighting for journalistic freedom, and this case has represented a mission to take on the political and business interests that he believes are influencing news organizations.

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Dan Rather's $70 Million Breach of Contract Lawsuit Dismissed--Court Rules in Favor of CBS

September 30, 2009,

As California Labor and Employment Lawyers, we have been following television news anchor Dan Rather's high profile two-year employment lawsuit--dismissed yesterday in the Appellate Division of the New York State Supreme Court.

The ruling, handed down by a five-judge panel, dismissed Rather's claims against CBS network for breach of contract, fraud, breach of fiduciary duty, and ruining his reputation. Rather claimed that CBS forced him take the fall for the controversial 2004-news story profiling George W. Bush's participation in the Texas Air National Guard during the Vietnam War. The judge dismissed Dan Rather's $70 million lawsuit, claiming it had no merit.

Rather filed the lawsuit in the state Supreme Court in Manhattan in 2007, claiming that CBS intentionally mishandled the aftermath of the 2004 broadcast. Rather narrated the news story, accusing President George W. Bush of relying on high political influence to dodge responsibilities during his service in the Texas Air National Guard. The broadcast incorporated copies of documents by Bush's commanding officer, supporting aspects of the story.

Rather received harsh criticism from conservative partisans following the broadcast, accusing him of trying to influence the 2004 presidential race. Critics questioned the authenticity of the documents, and CBS conducted an independent investigation into the production. CBS determined that the story was inaccurate, and fired the producer and Rather, forcing Rather to apologize for the alleged journalistic errors. According to the lawsuit, Rather was used as a "scapegoat" and shoved into the spotlight by CBS, making him take the fall professionally to "pacify" the White House--costing him significant financial loss and damage to his reputation. As a result the media called the episode, "Rathergate."

Rather stepped down from the Evening News in May 2005, continuing to report for 60 Minutes until his job was permanently terminated in June 2006. Rather claimed in the suit that CBS "warehoused" him during this time, and failed to properly compensate him for the final 15 months when he could have sought other employment. The appeals panel cited the CBS "pay or play" provision in the ruling--claiming that although Rather was not used as frequently in his final 15 months, CBS did not violate the terms of Rather's contract, because they continued to pay him "applicable compensation." Rather's annual CBS salary of approximately $6 million was paid until June 2006.

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