CN Presents Pty Ltd v De Vito [2009] NSWSC 388

CN Presents Pty Ltd v De Vito [2009] NSWSC 388

The management agreement was an oral, binding agreement under which CNP and Gardner would manage De Vito, initially for five years later reduced to three years, for 20% of her earnings with a three-year retention period. However, the plaintiffs did not establish an implied term requiring De Vito substantially to follow reasonable advice, and the incidents relied on did not amount to repudiation. The plaintiffs' resignation therefore was not justified by repudiation by De Vito. CNP nevertheless proved the separate business agreement that De Vito would pay $50,000 plus GST for setting up CDV Records, with $25,000 already paid, and De Vito agreed that $7,000 was payable for expenses. De Vito...

Jurisdiction
Australia
Judgment Date
13 May 2009
Procedural Posture
Equity Division Commercial List Contract Proceeding With Cross Claim / Principal Judgment After Hearing; Parties to Be Heard on Costs Before Formal Orders
Outcome
CNP was entitled to recover $30,000 from De Vito plus $7,000 for agreed expenses and interest; the management agreement damages claims by CNP or Nellis and Gardner were not made out; De Vito's cross-claim was not made out. Formal orders were deferred pending submissions on costs.
Legal Topics
['oral Management Agreement' 'formation of Contract Subject to Formal Documentation' 'repudiation' 'implied Terms' 'damages' 'cross Claim for Breach of Management Agreement and Fiduciary Obligations']
['contract Law' 'equity' 'entertainment Industry'] ['oral Management Agreement' 'formation of Contract Subject to Formal Documentation' 'repudiation' 'implied Terms' 'damages' 'cross Claim for Breach of Management Agreement and Fiduciary Obligations']

Case Brief

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Procedural Posture

Equity Division Commercial List Contract Proceeding With Cross Claim / Principal Judgment After Hearing; Parties to Be Heard on Costs Before Formal Orders

Legal Issues

  1. 1 ['Whether there was a concluded management agreement between CNP, Gardner and De Vito, and its terms.' 'Whether the management agreement was binding notwithstanding contemplation of later formal documentation.' 'Whether De Vito repudiated the management agreement by not following management advice.' 'Whether CNP was entitled to payment under the business agreement for setting up CDV Records and reimbursement of expenses.' 'Whether De Vito established her cross-claim for alleged breaches by the plaintiffs, including excessive production, unnecessary staff, lease expenses, unsuccessful promotion and excessive public relations consultants.']

Ratio Decidendi

The management agreement was an oral, binding agreement under which CNP and Gardner would manage De Vito, initially for five years later reduced to three years, for 20% of her earnings with a three-year retention period. However, the plaintiffs did not establish an implied term requiring De Vito substantially to follow reasonable advice, and the incidents relied on did not amount to repudiation. The plaintiffs' resignation therefore was not justified by repudiation by De Vito. CNP nevertheless proved the separate business agreement that De Vito would pay $50,000 plus GST for setting up CDV Records, with $25,000 already paid, and De Vito agreed that $7,000 was payable for expenses. De Vito...

Court Disposition

CNP was entitled to recover $30,000 from De Vito plus $7,000 for agreed expenses and interest; the management agreement damages claims by CNP or Nellis and Gardner were not made out; De Vito's cross-claim was not made out. Formal orders were deferred pending submissions on costs.

Orders

  • ['CNP is entitled to recover $30,000 from De Vito plus $7,000 for agreed expenses and interest.' 'The claims by CNP or Nellis and Gardner under the management agreement are not made out.' 'The claims of De Vito against CNP or Nellis are not made out.' 'The parties are to be heard on costs before formal orders...