another potential Supreme Court case
ri...@marathonent.com
Managers Want Arbitration Decision Reviewed
February 02, 2007
By Leslie Simmons
A personal managers trade group has filed an amicus letter with the
California Supreme Court urging the justices to review a decision
granting the labor commissioner jurisdiction over talent disputes
regardless of a standard arbitration agreement in a contract.
In a letter sent this week from the National Conference of Personal
Managers, president Clinton Billups contends the appeals court
decision in Preston v. Ferrer "has the practical effect of making
arbitration agreements between personal managers and their
entertainment clients unenforceable, in contrast to our state and
federal rights to agree to arbitration."
Additionally, "allowing the court of appeals decision to stand creates
a clear message that artists from anywhere in the United States can
utilize the (Talent Agencies Act) to engage personal managers in
litigation instead of paying their otherwise-owed commissions in clear
interference with our interstate commerce rights," Billups claims.
"The appellate court ruling reiterates the unconstitutional
application of TAA on our legal occupation of personal management."
The case concerns a fee dispute between attorney and manager Arnold
Preston and his former client, Alex Ferrer of TV's "Judge Alex."
Like many manager vs. client disputes, Ferrer claims Preston is owed
nothing because he overstepped the bounds as a manager and acted as an
unlicensed talent agent, in violation of the TAA.
Preston pushed for arbitration in the case based on a standard clause
included in his management agreement, but the case landed before the
labor commissioner. On appeal, Preston argued the dispute should go to
arbitration pursuant to the agreement.
In November, the 2nd District Court of Appeal decided 2-1 that any
dispute involving the TAA must first be decided by the labor
commissioner. Preston appealed to the state's high court.
The letter is the first amicus filed in the case.
Representing Preston is Joseph Schleimer of Schleimer & Freundlich in
Beverly Hills. Robert Dudnik of Mitchell Silberberg & Knupp in Los
Angeles is representing Ferrer.
The case is Preston v. Ferrer, S149190.