Kagan v. K-Tel Entertainment, Inc.

172 A.D.2d (1991)

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Nature of the Case

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Facts

IPC (P) and its principal shareholder and officer, Kagan, were engaged by K-Tel (D) to place a pilot and a locate a distributor for a television series called Kids, Incorporated. P placed the series with MGM/UA which entered into an agreement with D on February 8, 1984. The agreement between P and D was never reduced to writing. However, P was paid $15,000 for the sale of the pilot and was also paid $10,000 in advance towards sums due on the first eight programs. D only produced those eight programs and then fell into financial difficulty. MGM then notified D that it intended to remove the producer pursuant to their agreement. At this time, MGM had paid D all monies due under the agreement. D then assigned its rights and obligations under the agreement to Hal Roach Entertainment. MGM was not a party to the assignment but agreed to the substitution of Roach as a producer. D eventually filed bankruptcy, and so did Roach. P seeks to recover from MGM, the amount allegedly agreed upon to be paid by D; 10% of the amount paid by MGM for the entire 26 episodes. P alleges that MGM got the benefits associated with being a distributor and should, therefore, be liable to P for the 10% on the basis of unjust enrichment. MGM's motion for summary judgment was denied. MGM appealed.