{"id":16535,"date":"2020-04-03T11:37:00","date_gmt":"2020-04-03T18:37:00","guid":{"rendered":"https:\/\/dev.creativespikedigital.com\/lftc\/?p=16535"},"modified":"2025-03-02T17:03:53","modified_gmt":"2025-03-03T01:03:53","slug":"paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims","status":"publish","type":"post","link":"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/","title":{"rendered":"Paradigm Agent&#8217;s Lawsuit May Be First of Many Coronavirus Breach of Contract Claims"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-lawyers-say-paradigm-and-apa-are-setting-themselves-up-for-legal-fights-by-cutting-agents-before-their-contracts-expire\">Lawyers say Paradigm and APA are setting themselves up for legal fights by cutting agents before their contracts expire.<\/h2>\n\n\n\n<p>Literary agent <strong>Debbee Klein<\/strong>\u2019s <a href=\"https:\/\/www.billboard.com\/articles\/business\/9349210\/fired-paradigm-agent-lawsuit-sam-gores\/\" target=\"_blank\" rel=\"noreferrer noopener\">lawsuit filed Thursday<\/a>\n against Paradigm Talent Agency is full of stunning allegations, \nincluding payoffs to prostitutes and other criminal misconduct, but it\u2019s\n the language around Klein\u2019s contract termination and cuts to her \ncompensation and health benefits that could prove to be a major \nliability for the agency.<\/p>\n\n\n\n<p>Without warning, Klein claims she and 200 other Paradigm  employees were either temporarily laid off or had their employee  contracts unilaterally suspended or terminated on March 20 when chairman  <strong>Sam Gores<\/strong> decided to institute \u201ctemporary layoffs.\u201d As  a result, Klein and the other employees will be left without health  insurance at the end of April &#8212; just as the coronavirus pandemic is  expected to peak in California, according to data from the Institute of  Health Measurement and Evaluation.<\/p>\n\n\n\n<p>\u201cHe didn\u2019t bother to call his agents, some of which have  immunocompromised kids, to ask about their families &#8212; he just ripped  their health insurance away,\u201d says <a href=\"https:\/\/dev.creativespikedigital.com\/lftc\/attorneys\/bryan-j-freedman\/\">Klein\u2019s attorney <strong>Bryan Freedman<\/strong><\/a>, who represented <strong><a href=\"https:\/\/dev.creativespikedigital.com\/lftc\/category\/ftllp_clients\/megyn-kelly\/\">Megyn Kelly<\/a><\/strong> in her legal battle with NBC News and now represents <strong><a href=\"https:\/\/dev.creativespikedigital.com\/lftc\/category\/ftllp_clients\/gabrielle-union\/\">Gabrielle Union<\/a><\/strong> in her lawsuit against <em>America\u2019s Got Talent<\/em> and <strong><a href=\"https:\/\/dev.creativespikedigital.com\/lftc\/category\/ftllp_clients\/deborah-dugan\/\">Deborah Dugan<\/a><\/strong>  in her lawsuit against the <a href=\"https:\/\/dev.creativespikedigital.com\/lftc\/category\/ftllp-opponents\/recording-academy\/\">Recording Academy<\/a>. \u201cNothing makes me happier  than going after someone who takes away people\u2019s health insurance  during a pandemic.\u201d<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-large is-layout-flow wp-block-quote-is-layout-flow\"><p>I\u2019m going after him hard, the bully is going to get bullied<\/p><cite>Bryan Freedman<\/cite><\/blockquote>\n\n\n\n<p>APA has also made <a href=\"https:\/\/www.billboard.com\/articles\/news\/9345603\/apa-reduces-salaries-over-100k-amid-pandemic\/\" target=\"_blank\" rel=\"noreferrer noopener\">similar cuts to staff<\/a>,\n ending at least a dozen agents\u2019 health insurance on April 30 and \ntemporarily suspending the compensation portion of their contracts while\n still enforcing non-compete provisions that protect the agency\u2019s \nrights. A source at APA says the suspensions are temporary, but affected\n agents at both firms argue the indefinite suspensions are de-facto \nterminations without cause and will likely result in breach of contract \nlawsuits.<\/p>\n\n\n\n<p>\u201cI would argue that within an employment agreement, a suspension of \npay is such a material element of the contract that a breach of contract\n is likely,\u201d says attorney <strong>Michael Seville<\/strong> with the San\n Francisco firm Seville Briggs. Seville, who has negotiated contracts \nand litigated for large labor unions and corporate executives, says if a\n judge or jury found that a breach had occurred, the employer could be \nrequired to pay the employee for wages during the suspension period. If \nthere was a payout clause in the contract that required the agency to \npay the remainder of the contract to the employee if they were \nterminated without cause, Seville explains, the agency could likely be \nrequired to buyout the contract.<\/p>\n\n\n\n<p>The coronavirus-caused shutdown of the live entertainment industry \nhas been an economic calamity for the touring sector and prompted salary\n reductions at agencies like UTA &#8212; which has <a href=\"https:\/\/www.billboard.com\/articles\/business\/9341242\/uta-pay-cuts-coronavirus-leadership-salaries\/\" target=\"_blank\" rel=\"noreferrer noopener\">so far avoided layoffs<\/a> &#8212; and WME, whose parent company Endeavor has cut some non-essential employees but has <a href=\"https:\/\/www.billboard.com\/articles\/business\/9348540\/endeavor-cut-pay-companywide-pandemic\/\" target=\"_blank\" rel=\"noreferrer noopener\">mainly relied on salary reductions<\/a> to avoid layoffs in its agency business.<\/p>\n\n\n\n<p><em>Billboard<\/em> reached out to Paradigm and APA and both companies  declined to comment, but APA did forward a March 27 staff memo  announcing the suspensions. In the unsigned memo, APA officials said  they were \u201ctaking the necessary cost-cutting measures companywide to  protect our business with minimal impact on our most vulnerable  employees.\u201d It made no mention of contract suspensions.<\/p>\n\n\n\n<p>A terminated Paradigm employee who wished to remain anonymous for \nfear of retribution says they were told the agency was invoking a <em>force majeure<\/em>\n provision in their employee agreement caused by the spread of the \ncoronavirus when suspending their contract. But, the former employee \nnoted, the contract\u2019s language around <em>force majeure<\/em> includes a 90-day notice requirement that wasn\u2019t given.<\/p>\n\n\n\n<p>An APA agent that did not want to reveal their name likewise said that the company cited <em>force majeure<\/em>\n to justify suspensions, but continued to operate most of its \ndepartments and kept people in similar positions employed. Ironically, \nthe agent said, APA\u2019s own standard for <em>force majeure<\/em> when applied to events they book for artists is much higher &#8212; the event would have to be impossible to stage.<\/p>\n\n\n\n<p>\u201cWe wouldn\u2019t let a promoter tell us they were invoking <em>force majeure<\/em> to save some money here and cut some costs here, but remain operational and host events,\u201d the former APA agent said.<\/p>\n\n\n\n<p>\u201cIt\u2019s pretty dicey when you\u2019re deciding who gets to stay and who doesn\u2019t,\u201d Seville says. \u201cI would argue that <em>force majeure<\/em> cuts would have to be universally applied across the business.\u201d<\/p>\n\n\n\n<p>In Klein\u2019s lawsuit in Los Angeles County, she says Paradigm\u2019s \ndecision to terminate her contract without cause during the onset of the\n U.S. coronavirus outbreak was a breach of an oral contract she reached \nwith Gores in December covering her employment through 2021. Her \nattorney Freedman says changes to her compensation in the month after \nher original contract expired prove she had a new employment agreement \nin place. Freedman says Gores is now using the coronavirus pandemic as \nan excuse not to pay the high profile agent the money he owes her and \ntake away health insurance from more than 200 employees.<\/p>\n\n\n\n<p>\u201cBecause he tried to bully my client and took his staff\u2019s health insurance away, he\u2019s now my number one target,\u201d says Freedman.<\/p>\n\n\n\n<p>\u201cI\u2019m going after him hard,\u201d Freedman says. \u201cThe bully is going to get bullied.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lawyers say Paradigm and APA are setting themselves up for legal fights by cutting agents before their contracts expire. Literary agent Debbee Klein\u2019s lawsuit filed Thursday against Paradigm Talent Agency is full of stunning allegations, including payoffs to prostitutes and other criminal misconduct, but it\u2019s the language around Klein\u2019s contract termination and cuts to her [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":43745,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[370,104,2704,100,2705,2706,125,119],"tags":[1343,2708,2709,958,979],"class_list":["post-16535","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-billboard","category-bryan-j-freedman","category-debbee-klein","category-entertainment","category-paradigm-talent-agency","category-sam-gores","category-sean-m-hardy","category-tv_film","tag-apa","tag-coronavirus","tag-covid-19","tag-uta","tag-wme"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.7 (Yoast SEO v23.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Paradigm Agent&#039;s Lawsuit May Be First of Many Coronavirus Breach of Contract Claims - Liner Freedman Taitelman + Cooley LLP<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Paradigm Agent&#039;s Lawsuit May Be First of Many Coronavirus Breach of Contract Claims\" \/>\n<meta property=\"og:description\" content=\"Lawyers say Paradigm and APA are setting themselves up for legal fights by cutting agents before their contracts expire. Literary agent Debbee Klein\u2019s lawsuit filed Thursday against Paradigm Talent Agency is full of stunning allegations, including payoffs to prostitutes and other criminal misconduct, but it\u2019s the language around Klein\u2019s contract termination and cuts to her [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/\" \/>\n<meta property=\"og:site_name\" content=\"Liner Freedman Taitelman + Cooley LLP\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-03T18:37:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-03T01:03:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dev.creativespikedigital.com\/lftc\/wp-content\/uploads\/2025\/03\/billboard-pro-logo-white_and_red_fill-black_bkgrd-Featured-Image.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1500\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"ftllp_admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ftllp_admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/\"},\"author\":{\"name\":\"ftllp_admin\",\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/#\/schema\/person\/3689b4a848bd17e31eca52e5c5ee63af\"},\"headline\":\"Paradigm Agent&#8217;s Lawsuit May Be First of Many Coronavirus Breach of Contract Claims\",\"datePublished\":\"2020-04-03T18:37:00+00:00\",\"dateModified\":\"2025-03-03T01:03:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/\"},\"wordCount\":910,\"publisher\":{\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/#organization\"},\"image\":{\"@id\":\"https:\/\/dev.creativespikedigital.com\/lftc\/news\/entertainment\/paradigm-agents-lawsuit-may-be-first-of-many-coronavirus-breach-of-contract-claims\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dev.creativespikedigital.com\/lftc\/wp-content\/uploads\/2025\/03\/billboard-pro-logo-white_and_red_fill-black_bkgrd-Featured-Image.jpg\",\"keywords\":[\"APA\",\"Coronavirus\",\"covid-19\",\"UTA\",\"WME\"],\"articleSection\":[\"Billboard\",\"Bryan Freedman\",\"Debbee Klein\",\"Entertainment\",\"Paradigm Talent Agency\",\"Sam Gores\",\"Sean M. 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