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Arbitrators' Findings Upheld in Legal Malpractice Dispute over Talent Agencies Act Controversy
The California Court of Appeal, Second District, affirmed an arbitration decision that awarded attorney fees to a law firm that represented a management company in a challenge to the reach of the California Talent Agencies Act (TAA). Marathon Entertainment Inc. v. Fox & Spillane LLP, B224686. Fox & Spillane served as counsel to Marathon in three commission disputes with the management company's talent clients. One case was settled and two were litigated. In Marathon Entertainment Inc. v. Blasi, 42 Cal.4th 974 (2008), the California Supreme Court ruled that unlicensed talent agent activity by Marathon could be severed from its management contract with actress Rosa Blasi such that the actress still owed management commissions to Marathon from acting activity obtained by Marathon through a licensed talent agent.
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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.
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