Berg v. Traylo

56 Cal. Rptr.3d 140 (2007)

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Nature of the Case

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Facts

P entered into a two-page “Artist's Manager's Agreement” (agreement) with Meshiel and Craig Traylor (Ds), mother and son. Craig was then 10 years old. Meshiel signed the agreement and wrote Craig's name on the signature page where he was designated “Artist.” Craig did not sign the agreement. P was to be Craig's exclusive personal manager for a commission of 15 percent of all gross monies or other consideration paid to him as an artist during the three-year term of the agreement, as well as income from merchandising or promotional efforts or offers of employment made during the term of the agreement, regardless of when Craig received such monies. The agreement stated that any action Craig “may take in the future pertaining to disaffirmance of this agreement, whether successful or not,” would not affect Meshiel's liability for any commissions due P. The agreement also provided that any disputes concerning payment or interpretation of the agreement would be determined by arbitration. Craig (D) obtained a recurring acting role on Malcolm in the Middle. Four months prior to the expiration of the agreement, Ds terminated P. P sued Ds for breach of the agreement, breach of the implied covenant of good faith and fair dealing, breach of an oral loan agreement, conversion and declaratory relief. Meshiel (D) attended the arbitration without Craig (D) nor an attorney. P got a default judgment against Craig (D) for $154,714.15 with another for $405,000 for future earnings. Craig (D) did not have a lawyer or guardian ad litem. Craig (D) disaffirmed the contract and petitioned to vacate the arbitration. P got the judgment and Ds appealed.