Minors and Entertainment Contracts

Transcription

1 Minors and Entertainment Contracts Eric E. Johnson ericejohnson.com Konomark Most rights sharable Differences for Minors Under general contract doctrine, minors may disaffirm any contracts before they are 18 years old. By statute, California allows minor to optionally enter into undisaffirmable contracts for entertainment services. Some other states have similar laws. 1

2 It s Optional Use of these anti-disaffirmance statutes are optional. Minors and companies can enter contracts without them, but companies do so at their peril, because minors can disaffirm. So generally, entertainment companies will require a court-approved undisaffirmable contract to hire a minor. Policy rationales supporting the scheme: stability for entertainment companies employment opportunities for minors, enabled by enforceable contracts protect minors from getting bad deals 2

3 Key statutes: Cal. Labor Code nondisaffirmability of talent agnecy contract Cal. Family Code 6750 nondisaffirmability of entertainment employment contract Cal. Family Code 6752 earnings lockbox Coogan accounts Cal. Labor Code : Nondisaffirmability for talent agent contract with minor if: On form approved by the labor commissioner Approved by superior court 3

4 Cal. Family Code 6750 applicability: A contract pursuant to which a minor is employed or agrees to render artistic or creative services, either directly or through a third party, including, but not limited to, a personal services corporation (loan-out company), or through a casting agency. "Artistic or creative services" includes, but is not limited to, services as an actor, actress, dancer, musician, comedian, singer, stunt-person, voice-over artist, or other performer or entertainer, or as a songwriter, musical producer or arranger, writer, director, producer, production executive, choreographer, composer, conductor, or designer Court Approval: Petition can be made by either party. For approval in Los Angeles County Superior Court, a party submits a petition and attaches the contract as an exhibit. Parties may waive notice and appearance, expediting the process and allowing everything to be done by mail. Upon approval, contract is nondisaffirmable. 4

5 Jackie Coogan Coogan Accounts Cal. Family Code 6752 provides for 15% of gross earnings to be placed into a blocked bank account. The employer deposits the money directly into the account. Parents can t get access. The minor can apply for access after turning 18 old. 5

6 Gary Coleman Gary Coleman Coleman worked on Diff'rent Strokes under a courtapproved contract. Coleman's parents and managers represented to court they could do a better job of pension savings outside of the trust fund. The court amended its earnings preservation order, eliminating the trust fund requirement. Coleman's parents put most of the money in a pension fund the created for themselves, "leaving him alone, on kidney dialysis, and broke." After the Coleman scandal, the L.A. Superior Court rarely amended an earnings preservation order. 6

7 The current California law reflects statutory changes effective in 2000 that closed loopholes exploited by parents, mandating a straight 15% of gross be placed in the Coogan account. Sources: Thom Hardin, The Regulation of Minors Entertainment Contracts: Effective California Law or Hollywood Grandeur? 19 JOURNAL OF JUVENILE LAW 376 (1998) Cited statutes 7