Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
19 Entertainment Lawsuit Could Change Management Contracts Forever
Author: Scarinci Hollenbeck, LLC
Date: September 7, 2016
Key Contacts
Back
How the 19 Entertainment Lawsuit could change everything
Just over a year ago, Philip Philips sought to change the way contracts between reality television program participants and their managers are structured with his 19 Entertainment lawsuit. However, the group he sued is working to make sure that it can maintain the power to procure jobs for clients and require them to accept.
19 Entertainment, the producer of “American Idol,” was named in a petition to determine controversy by the singer, who claimed he was manipulated through his contract with the company. The deal required him to sign on to numerous jobs to participate in the long-running singing competition. Philips wasn’t the first former participant to file suit against 19 Entertainment, but he has made significant progress, and now the company is striking back. The string of lawsuits point towards a potential problem with the way production companies negotiate with reality TV participants. Specifically, the issue stems from what managers require talent to do outside of the programs.
Why Philips is petitioning his contract
If reality TV show participants achieve a certain level of fame through their appearances, they can leverage their public images in numerous ways. In a best-case scenario, that typically involves the individuals seeking endorsement and other TV deals. However, sometimes they can’t do this because of the extensive requirements of their contracts. Deals such as the one between 19 Entertainment and Philips may require participants to make appearances outside of programs such as “American Idol.”
“Under the Talent Agencies Act, only an agent can procure work for a client.”
This, Philips claimed, is a violation of certain labor regulations. First, under the Talent Agencies Act, only an agent can procure work for a client. Also, his lawsuit alleged that 19 Entertainment breached its fiduciary duty to Philips by requiring him to work jobs that benefited the company more than him. The production firm’s recently filed complaint seeks to test the singer’s claims. The company alleged that Philips has been avoiding his contractual duties in anticipation of a ruling in his favor, according to The Hollywood Reporter.
Philips’ attorney claimed the company’s complaint is an attempt to sidestep California regulations protecting entertainers from overly burdensome contracts. 19 Entertainment hopes to have the authority to continue requiring Philips to work events required by his contract.
What 19 Entertainment’s lawsuit means for Philips’ crusade
If 19 Entertainment is able to pursue its legal action against Philips and wins the right to require him to make appearances noted in his contract, that outcome could be a victory for management companies in California. This would give these firms the power to procure employment for their clients, similar to the role agents play. In addition, it could alleviate the fiduciary duty Philips claimed exists and give managers more control over what they ask clients to do.
Anyone hoping for a role in reality TV or participating in an ongoing show should review his contracts and determine whether his manager is overstepping the boundaries of the Talent Agencies Act and complying with its fiduciary duty. That may not be something clients can challenge management on for long if 19 Entertainment comes out of this legal entanglement victorious.
What’s next?
For now, Philips has made significant progress in his fight for more favorable contracts. Whether this tilt goes in favor of Philips or 19 Entertainment remains to be determined, and the outcome can end up having a substantial effect on contracts between managers and their clients.
If you’re reviewing a management contract or would like to discuss the matter further, contact me, Anthony Caruso, at 201-806-3364.
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
19 Entertainment Lawsuit Could Change Management Contracts Forever
Author: Scarinci Hollenbeck, LLC
How the 19 Entertainment Lawsuit could change everything
Just over a year ago, Philip Philips sought to change the way contracts between reality television program participants and their managers are structured with his 19 Entertainment lawsuit. However, the group he sued is working to make sure that it can maintain the power to procure jobs for clients and require them to accept.
19 Entertainment, the producer of “American Idol,” was named in a petition to determine controversy by the singer, who claimed he was manipulated through his contract with the company. The deal required him to sign on to numerous jobs to participate in the long-running singing competition. Philips wasn’t the first former participant to file suit against 19 Entertainment, but he has made significant progress, and now the company is striking back. The string of lawsuits point towards a potential problem with the way production companies negotiate with reality TV participants. Specifically, the issue stems from what managers require talent to do outside of the programs.
Why Philips is petitioning his contract
If reality TV show participants achieve a certain level of fame through their appearances, they can leverage their public images in numerous ways. In a best-case scenario, that typically involves the individuals seeking endorsement and other TV deals. However, sometimes they can’t do this because of the extensive requirements of their contracts. Deals such as the one between 19 Entertainment and Philips may require participants to make appearances outside of programs such as “American Idol.”
“Under the Talent Agencies Act, only an agent can procure work for a client.”
This, Philips claimed, is a violation of certain labor regulations. First, under the Talent Agencies Act, only an agent can procure work for a client. Also, his lawsuit alleged that 19 Entertainment breached its fiduciary duty to Philips by requiring him to work jobs that benefited the company more than him. The production firm’s recently filed complaint seeks to test the singer’s claims. The company alleged that Philips has been avoiding his contractual duties in anticipation of a ruling in his favor, according to The Hollywood Reporter.
Philips’ attorney claimed the company’s complaint is an attempt to sidestep California regulations protecting entertainers from overly burdensome contracts. 19 Entertainment hopes to have the authority to continue requiring Philips to work events required by his contract.
What 19 Entertainment’s lawsuit means for Philips’ crusade
If 19 Entertainment is able to pursue its legal action against Philips and wins the right to require him to make appearances noted in his contract, that outcome could be a victory for management companies in California. This would give these firms the power to procure employment for their clients, similar to the role agents play. In addition, it could alleviate the fiduciary duty Philips claimed exists and give managers more control over what they ask clients to do.
Anyone hoping for a role in reality TV or participating in an ongoing show should review his contracts and determine whether his manager is overstepping the boundaries of the Talent Agencies Act and complying with its fiduciary duty. That may not be something clients can challenge management on for long if 19 Entertainment comes out of this legal entanglement victorious.
What’s next?
For now, Philips has made significant progress in his fight for more favorable contracts. Whether this tilt goes in favor of Philips or 19 Entertainment remains to be determined, and the outcome can end up having a substantial effect on contracts between managers and their clients.
If you’re reviewing a management contract or would like to discuss the matter further, contact me, Anthony Caruso, at 201-806-3364.