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Breach of Contract
Getting Out or Getting Thrown Out
Breach of Contract
Violating one or more of the provisions, leading to legal action
Penalties often outlined in contract itself
Litigation or Arbitration
When Contracts Attack
1. I was a good employee for you, but we’re done now
Band 30 Seconds to Mars signed with LA record company in 1999. Company
was bought by Virgin Records in 2004
Only produced 3 of 5 records before original company ceased to exist
CA law: a contract "may not be enforced against the employee beyond seven years from the commencement of service under it.“
Band tried to negotiate with someone new in 2008 & sued for breach of contract by Virgin- ultimately signed new deal for more money
2. You did your work faster than you should have, so now you need to do more Tim McGraw contract identifies how many records
in how many years, AND how long in between them
Turned in master tracks for new album too soon
Record company wouldn’t produce & is suing for another album before he can go elsewhere
Court said he could go elsewhere while being worked out- then old label sued new label because they “owned” the artist
Court kicked to state level before would rule in Federal court
http:///
Movie Trailer for pitch
https://www.youtube.com/watch?v=TFgmolA-uxM
Nov 2012- signed contract- promised 7 weeks of work
Dec 2012 began shooting
Jan 2013 postponed due to finances- had done 11 days
Feb 2013- ready to resume
She’s not free until November
Needs more money to come back
Film came up with money
Then she pulled out
Fouchencourt v Metropolitan Opera Fell onstage while performing and hit his head
Sued for physical and emotional damages
Determined to be an employee- got all he had coming through Workers Comp
Case dismissed
Black Violin Verbal offer never accepted in writing
Management could not respond to technical questions
Bought plane tickets
Then they noticed we never paid…
Betancur v. Lincoln Center
Building Renovation
Lincoln Center hired electrical subcontractor
Electrician fell off ladder doing work because it wasn’t secure
Sued both Lincoln Center & Company
Who should be responsible?
Kansas City Art Museum v. Donors
Rich couple made five-year, $5 Million pledge- much in stock
Lost money in bank collapse
Can’t pay, and stock is worthless
Breach of Contract?
Breach of ContractBreach of ContractWhen Contracts Attack Movie Trailer for pitchSlide Number 7Slide Number 8Slide Number 9Fouchencourt v Metropolitan OperaBlack ViolinBetancur v. Lincoln CenterKansas City Art Museum v. Donors
1
Breach of Contract
Getting Out or Getting Thrown Out
2
Breach of Contract
Violating one or more of the provisions, leading to legal action
Penalties often outlined in contract itself
Litigation or Arbitration
When Contracts Attack
1. I was a good employee for you, but we’re done now
Band 30 Seconds to Mars signed with LA record company in 1999. Company was bought by Virgin Records in 2004
Only produced 3 of 5 records before original company ceased to exist
CA law: a contract "may not be enforced against the employee beyond seven years from the commencement of service under it.“
Band tried to negotiate with someone new in 2008 & sued for breach of contract by Virgin- ultimately signed new deal for more money
2. You did your work faster than you should have, so now you need to do more
Tim McGraw contract identifies how many records in how many years, AND how long in between them
Turned in master tracks for new album too soon
Record company wouldn’t produce & is suing for another album before he can go elsewhere
Court said he could go elsewhere while being worked out- then old label sued new label because they “owned” the artist
Court kicked to state level before would rule in Federal court
Movie Trailer for pitch
https://www.youtube.com/watch?v=TFgmolA-uxM
Nov 2012- signed contract- promised 7 weeks of work
Dec 2012 began shooting
Jan 2013 postponed due to finances- had done 11 days
Feb 2013- ready to resume
She’s not free until November
Needs more money to come back
Film came up with money
Then she pulled out
Fouchencourt v Metropolitan Opera
Fell onstage while performing and hit his head
Sued for physical and emotional damages
Determined to be an employee- got all he had coming through Workers Comp
Case dismissed
Black Violin
Verbal offer never accepted in writing
Management could not respond to technical questions
Bought plane tickets
Then they noticed we never paid…
Betancur v. Lincoln Center
Building Renovation
Lincoln Center hired electrical subcontractor
Electrician fell off ladder doing work because it wasn’t secure
Sued both Lincoln Center & Company
Who should be responsible?
Kansas City Art Museum v. Donors
Rich couple made five-year, $5 Million pledge- much in stock
Lost money in bank collapse
Can’t pay, and stock is worthless
Breach of Contract?