CONTRACT / COMPETITION
Live events sector
Two US booking agencies are battling it out in the Superior Court of Los Angeles over the alleged poaching of Beverly Hills-based agent Garrett Smith. The Agency for the Performing Arts (APA), whose clients includes Paul Oakenfold, 50 Cent, The Proclaimers and Scorpions, is seeking damages for interference with contractual relations, interference with prospective economic advantage and unfair competition from the Gersh Agency, of which Smith is now an employee, despite being under contract with APA until September 2017. APA is also suing Smith himself for breach of contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, breach of the duty of loyalty and unfair competition.
The APA complaint alleges that Gersh “hired Smith despite being specifically advised by plaintiff [APA] that plaintiff was entitled to Smith’s exclusive services for the duration of the employment agreement” and “Defendant knew of the economic relationship between plaintiff and Smith, and intended to disrupt and interfere with that relationship”