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Supreme Court of California - 42 Cal. 4th 974
tl;dr:
Marathon Entertainment had an oral contract with Rosa Blasi for career counseling and promotion for 15% commission of her earnings. Blasi reduced commission to 10% and then stopped paying. Marathon sued for breach of contract, but Blasi also filed a petition alleging Marathon violated the Talent Agencies Act by procuring employment for her without a talent agency license.Video Summary
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Marathon Entertainment, a personal manager, and Rosa Blasi, an artist, had an oral contract for career counseling and promotion in exchange for 15% of Blasi's entertainment earnings. Blasi reduced Marathon's commission to 10% and stopped paying altogether, leading Marathon to sue for breach of contract, quantum meruit, false promise, and unfair business practices. Blasi filed a petition with the Labor Commissioner, alleging that Marathon violated the Talent Agencies Act by procuring employment for her without a talent agency license. The Labor Commissioner voided the contract ab initio, barring Marathon from recovery, finding that Marathon had violated the Act by procuring various engagements for Blasi. The Court of Appeal affirmed the decision, and the case raises questions about the application of the doctrine of severability to such contracts. The trial court granted Blasi's motion for summary judgment, invalidating Marathon's personal management contract as an illegal contract for unlicensed talent agency services in violation of the Act. The Court of Appeal reversed in part, concluding that Blasi's obligation to pay Marathon a commission on her Strong Medicine employment contract could be severed from any unlawful parts of the parties' management agreement. The Supreme Court granted review to address the applicability of the Act to personal managers and the availability of severance under the Act. The Talent Agencies Act, established in 1913, governs the representation of artists and aims to prevent exploitation of artists by their representatives. Personal managers are now regulated under the Talent Agencies Act, and the lower court erred in its interpretation of the Act. The court must determine whether the Act applies to personal managers and, if so, how. Marathon argues that personal managers are exempt from regulation under the Act, but the court disagrees based on the text of the Act and interpretations by the Courts of Appeal and Labor Commissioner.
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