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Major Clients Agency v. Diemer11/16/1998
CERTIFIED FOR PUBLICATION
(Super. Ct. No. SC040800)
APPEAL from a judgment of the Superior Court of Los Angeles County, Lorna Parnell, Judge. Affirmed.
This appeal is from the judgment of dismissal in favor of the respondent entered on July 25, 1996, following the trial court's order sustaining a demurrer without leave to amend. We affirm.
A. Factual and Procedural Background
Writer-producer Jeff Franklin (hereinafter "Franklin") hired appellant Major Clients Agency (hereinafter "Major Clients"), as his agent, to negotiate a contract between himself as writer-producer and Lorimar Productions, Inc. (hereinafter "Lorimar"). Franklin also hired an attorney, respondent John Diemer (hereinafter "Diemer"). Diemer was not hired as Major Clients' attorney. Major Clients and Diemer were both involved in the contract negotiations. The contract which was negotiated contained a commission agreement between Major Clients and Franklin which was based upon revenue to be received by Franklin pursuant to the contract. Major Clients' two shareholder principals included Richard Weston, an attorney and former president of Paramount Television.
The contract between Franklin and Lorimar was negotiated in 1988 and in 1990 and contained the provisions that, (1) Franklin was entitled to certain financial benefits from the television series which he had created, "Full House," for the life of the series, provided that he serve as executive producer for at least one year; and (2) Franklin was to participate in the profits derived from such a series after rendering executive producer services for one year. Another provision in the contract was that the studio had the right to assign Franklin to, or remove him from, any series during the contract term.
Prior to the expiration of the one year period specified in the contract, Lorimar removed Franklin from the position of executive producer in the "Full House" series and another series he was developing, "Hanging With Mr. Cooper." Lorimar then took the position that Franklin was not entitled to the above stated benefits of the contracts for the reason that he had not served the required year. Franklin sued Lorimar. The case was settled. In the settlement agreement, Franklin surrendered his claim to a substantial fee entitlement. As a result of this surrender, a dispute arose between Franklin and Major Clients regarding the amount of commission to which Major Clients was entitled. Major Clients filed a petition in arbitration for fees and Franklin cross-claimed. This controversy was decided in arbitration by settlement.
On February 5, 1996, Major Clients brought suit against Diemer. In its second amended complaint, Major Clients alleged a single cause of action for indemnity for damages it claimed it had sustained as a result of the lawsuit and settlement between Franklin and Lorimar. Appellant's theory was that Diemer had not, on Franklin's behalf, adequately monitored the 1988 and 1990 contract negotiations between Major Clients and Lorimar. Diemer's demurrer to the complaint was sustained without leave to amend on July 25, 1996, and the suit was dismissed. This appeal was timely taken on September 30, 1996.
B. Contentions of the Parties
Major Clients contends that Diemer failed to recognize and alert his client, Franklin, to the potentially adverse consequences of the language in certain provisions of the contract between Lorimar and Franklin. Appellant contends that the language of a "lock in" provision, a "vesting" provision, and "another contract provision" was worded in such manner that the studio was able "to assign Franklin to, or remove him from, any
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