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Arbitration Provision Read Into SAG-AFTRA Limited Exhibition Agreement
The U.S. District Court for the Central District of California decided that an independent film producer was bound to arbitrate disputes between it and SAG-AFTRA under the guild's Independent Producers' Limited Exhibition Letter Agreement. Screen Actors Guild ' American Federation of Television and Radio Artists (SAG-AFTRA) v. Goldade Productions Inc., 2:14-cv-04843. The letter agreement stated: “It is agreed that this letter is part of the [SAG Collective Bargaining Agreement (CBA)], and by executing this letter, the undersigned Producer and Screen Actors Guild ' shall be deemed to have executed” the CBA. SAG-AFTRA won an arbitration award against Goldade for failure to pay monies owed from distribution of Goldade's movie Sex and the Teenage Mind beyond the territory cited in the letter agreement. Confirming the award, District Judge Otis D. Wright II noted: “While this Letter Agreement does not include its own arbitration clause, section 3 of the Agreement provides that 'all the terms of [the CBA] apply as described above [in the Letter Agreement] except as hereby modified.' This means that the Limited Exhibition Letter Agreement operated as a modification of the CBA's terms ' or, in other words, the parties incorporated the Letter Agreement into the CBA. Since Goldade agreed to arbitrate disputes involving interpretation of the CBA, it follows that it agreed to arbitrate disputes concerning the incorporated Letter Agreement.”
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