Goldstone-Tobias Agency, Inc. v. Barbroo Enterprises Productions, Inc.

ROTH, P. J.

Respondent, (plaintiff) is a theatrical agency. Pursuant to written contracts of agency it solicits and exerts itself to obtain employment in various facets of the entertainment industry for its clients. Appellant (defendant) is a similar agency and at the time of this action and for some time prior thereto, represented Mickey Rooney, an actor.

On August 19, 1960, respondent had entered into an agency contract with Rooney to represent Rooney for one year for which representation respondent was to receive 10 per cent of Rooney’s gross income in the entertainment industry. The agency contract was signed by one Red Doff, Rooney’s personal manager, acting under a power of attorney from Rooney.

During its representation, respondent, under the 10 per cent arrangement, claimed that it had earned $13,500. In addition, respondent loaned Rooney $1,500, which was evidenced by a promissory note executed on March 8, 1961. The note was signed by Doff for Rooney under the power of attorney. The validity of this note and the indebtedness under it is admitted by appellant.

To collect the note respondent filed an action for $1,500 in the Municipal Court of Beverly Hills Judicial District. To collect its commissions respondent filed a proceeding for $13,500 before the Arbitration Tribunal of the Screen Actors Guild.

To avoid and eliminate the municipal court action and the arbitration proceeding the parties to the action and Rooney did on September 1, 1961, execute a settlement agreement (settlement) whereby appellant and Rooney agreed to pay respondent $9,000 in certain installments and reasonable attorney ’s fees if any action was brought to enforce the settlement; $650 had been paid on the settlement. No further payments having been made after demand therefor, the present action was filed to recover the balance. Judgment was for respondent. This appeal is taken from that judgment.

Appellant seeks to avoid the settlement on the theory

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that it is invalid because Rooney did not personally sign the contract with respondent. He argues that the regulations of the Screen Actors Guild which are incorporated automatically into respondent’s agency contract render all such agency contracts void if they are not signed by the actor himself. Forbearance to bring an action on an illegal contract, he asserts, cannot be consideration to support the settlement. This proposition is not sound.