Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Entertainment Law & FinanceKickerFeaturesTopicsCommercial LawLitigationSectionsNewsLJN Newsletters

How California Courts Should Handle Implied Good-Faith Obligation

By Kenneth A. Adams

[Editor's Note: This summer, the New York Supreme Court issued a ruling explaining why it refused to sanction film producer Crusader Entertainment for seeking to serve restraining orders ' on book author Clive Cussler's New York publisher and agent ' over an increased judgment the Los Angeles Superior Court had awarded Crusader in litigation with Cussler over the motion picture Sahara. Crusader Entertainment LLC v, Cussler, 107376/08 (N.Y. Sup. Ct., N.Y. County). The California jury had found that Cussler breached an implied covenant of good faith and fair dealing when he rejected a series of screenplays developed for the movie, based on his novel Sahara. The California Court of Appeal later rejected the jury's verdict on the implied covenant issue. In the article that follows, contract-drafting expert Kenneth A. Adams offers recommendations for California courts to consider on what he believes is a faulty court of appeal decision on a still cloudy, implied covenant issue in the state's jurisprudence.]

In Cussler v. Crusader Entertainment LLC, B208738 (Cal. Ct. App. 2010), the California Court of Appeal, Second District, rejected Crusader's argument that when author Clive Cussler refused to approve Crusader's many proposed screenplays for the film Sahara, Cussler breached the implied duty of good faith that is read under California law into every contract. The California Supreme Court subsequently denied petitions for review filed by Cussler and Crusader. (This author filed an amicus curiae letter in support of Crusader's petition for review.)

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.