Contracts, "I've changed my Mind"

From Media & Entertainment Law Wypadkis

The Acquisition/Distribution Agreement

DeHaviland v. Warner Brothers

FACTS: plaintiff actress had contract with defendant but California Civil Code limited duration of contracts to seven years; studio claims that contract was still effective because she had not given them seven years of service; several terms of suspension had been applied over the course of the seven years, extending the contract; plaintiff contests that the contract is still in effect while defendant claims that plaintiff still owes 25 weeks of service

DISCUSSION: California Statute limits contract to seven calendar years, regardless of whether there were suspensions in service

Radioactive Records v. Manson

FACTS: Defendant singer bound to record label by contract (which designated NY as choice of law) but was loaned out to another label to record albums with one of its bands; group was very successful and defendant filed suit in California seeking to become a free agent and seeking declaratory judgment that the agreements were terminated and that, because original contract was more than 7 years old, it was no longer enforceable

DISCUSSION: Court must apply New York law here because it may only refuse enforcement of choice-of-law clause when there is no reasonable basis for parties’ choice, or when application of chosen law would violate a fundamental public policy of another jurisdiction with materially greater interest in the dispute; Because agreement expressly designates New York law and there was a reasonable basis for choosing NY law, it applies here, regardless of whether later contacts were based in California and designated California law in contracts made between other parties