“The Most Interesting Man in the World” Gets His Counterclaim Tossed

Last fall, Jonathan Goldsmith, known as the “most interesting man in the world” of Dos Equis advertisement fame, was sued for breach of contract by his former talent agency after allegedly withholding commissions owed to the agency. Goldsmith, who began portraying the “most interesting man in the world” in 2006, earns approximately $1 million per year and is required by contract to pay a 10% commission to his talent agency. The ongoing lawsuit in Los Angeles is over Goldsmith’s alleged failure to pay those commissions.

What began as a straightforward breach of contract case took an interesting turn when Goldsmith filed a counterclaim in February, alleging that the owner of the talent agency was not who he said he was, but rather a failed actor who assumed a fake name in an effort to launch a new career as a personal manager. The counterclaim further alleges that after Goldsmith executed a contract extension with Dos Equis, which required strict confidentiality of its terms, Plaintiffs disclosed its payment terms, damaging Goldsmith’s relationship with Dos Equis and jeopardizing his future as the beer’s spokesman.

This month, Los Angeles Superior Court Judge Barbara Meiers granted Plaintiffs’ motion to dismiss Goldsmith’s counterclaim, noting that Goldsmith was unable to establish any probability of success on his claims and that there was no basis to support the countersuit. Goldsmith plans to appeal the dismissal of his counterclaim, and this litigation is shaping up to be costly for both sides. The case serves as an interesting reminder that staying out of court and avoiding costly litigation requires not just ironing out specific contract terms up front, but also adhering to them. A textbook example of when litigation simply isn’t worthwhile, this case indicates that it would likely have been less costly for Goldsmith to pay the 10% commission than to wage war in the courtroom by bringing frivolous counterclaims.

Frank Gulino is an award-winning composer and attorney with Berenzweig Leonard, LLP. He can be reached at FGulino@BerenzweigLaw.com.

Big Verdict for Funk Legend Sly Stone Puts Royalties in the Spotlight

Rock and Roll Hall of Famer Sly Stone has been awarded $5 million by a Los Angeles jury in a breach of contract case claiming that Stone’s former manager and business partners cheated Stone out of more than a decade’s worth of royalties. Stone is best known as the leader of the funk group Sly and the Family Stone, which he led to fame in the 1960s and 1970s with a number of big hits, including “Dance to the Music” and “Everyday People.”

Photo: www.slystonemusic.com

In 1989, a then-destitute Sly Stone was approached by manager Gerald Goldstein, who promised to revitalize Stone’s career. Goldstein proceeded to form Even St. Productions Ltd., of which Stone was made an employee and co-owner, and to which all royalties from Stone’s music were assigned. Although Sly Stone was supposed to receive a share of the royalties that Even St. Productions collected on his behalf, Goldstein and his attorney allegedly redirected and misappropriated the royalty revenue, and Stone received no royalty payments between 1989 and 2000. With evidence of alleged shady accounting practices coming out during trial, the defense’s argument that the royalty revenue went to paying off Stone’s IRS debt failed to convince the jury, who awarded Stone $5 million in damages.

This is an important verdict for artists, entertainers, and composers of all kinds; not only does it reinforce the importance of a creator’s rights to work generally, but also the strength of a creator’s rights to royalties specifically. This case also brings attention to the oppressive, one-sided deals many entertainers are presented with on a routine basis. In desperate times, the promise of a revitalized career sounds too good to pass up. However, it is certainly in every artist’s best interest to dig deeply into the terms of any management agreement to ensure that someone who promises you the world isn't trying to take the shirt off your back. A verdict of this size reminds us that, even in an age rife with music piracy and digital consumption, the public recognizes an artist’s right to profit from his or her work, and disapproves of those who would take advantage of the artistic community.

Frank Gulino is an award-winning composer and attorney with Berenzweig Leonard, LLP. He can be reached at FGulino@BerenzweigLaw.com.