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Styne v. Stevens2/8/2000
CERTIFIED FOR PARTIAL PUBLICATION *
APPEAL from an order of the Superior Court of Los Angeles County. Reginald Dunn, Judge. Reversed.
This case presents two main issues. The first is whether a trial court has jurisdiction to determine in the first instance whether the activities of a personal manager of a celebrity are encompassed within the Talent Agencies Act (Lab. Code, ยง 1700 et seq.). The second is whether the celebrity's failure to submit the question to the Labor Commissioner in a timely manner precludes her defense on this ground.
Norton Styne appeals from an order for new trial entered after a jury rendered a verdict in Styne's favor in the amount of $4,330,370. The verdict was against defendants Connie Stevens, Connie Stevens Forever Spring - the Beauty System, Inc., and Connie Stevens Forever Spring II - the Beauty System, Inc. (sometimes referred to collectively as Stevens), in Styne's action for breach of an oral contract by the terms of which Styne was to receive 10 percent of the profits of Stevens's cosmetics business. The trial court ordered a new trial on the ground that it had prejudicially erred in failing to instruct the jury on the requirements of the Act.
We hold that the Labor Commissioner has original jurisdiction to determine the legality of an agreement under the Act. Stevens's failure to refer the issue to the Labor Commissioner in a timely manner precludes her raising the issue in the trial court. The court therefore erred in granting a new trial on the ground that it had failed to instruct the jury on the requirements of the Act.
FACTUAL AND PROCEDURAL HISTORY
Styne filed this action in January 1996. The complaint, which is captioned breach of contract, breach of fiduciary duty, accounting, breach of express trust, imposition of constructive trust, constructive fraud, and declaratory relief, alleges the following. Styne was the long-time personal manager of Stevens, and devoted his professional efforts toward developing an electronic retail product sales business that would feature Stevens as a celebrity spokesperson selling her own line of beauty products. Stevens agreed that as a result of Styne's efforts, he was entitled to 10 percent of the profits arising from the business. In addition, Stevens agreed to defer payment of a portion of the amounts due to Styne and hold that money in trust for Styne.
Stevens did not allege violation of the Act in her answer, filed April 25, 1996. In July 1997, Stevens moved for summary judgment on the ground that the alleged contract between Styne and Stevens violates the Act and is therefore void.
Stevens asserted in her motion for summary judgment that if she agreed to pay Styne 10 percent of the profits of her cosmetics business in return for his efforts in setting up a deal with Home Shopping Network (HSN), as Styne alleged, then the agreement was void in that Styne was not licensed under the Act. Stevens pointed out that Styne, her personal manager, took credit for promoting her interests to HSN on numerous occasions, arranging a key meeting with top HSN personnel, and actively helping to procure Stevens's deal with HSN. That deal, according to Stevens, involved HSN buying Stevens's beauty products on the condition that she would appear on the network's programs promoting the products. Stevens took the position that the arrangement amounted to employment in an entertainment enterprise.
Styne denied that his agreement with Stevens was based upon his efforts as either her personal manager or as a talent agent. He asserted that he was instrumental in setting up Stevens's agreement to sell her cosmetics line to HSN, but that t
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