Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

In Hollywood Arbitration, the Problem is the Process

Author: Scarinci Hollenbeck, LLC

Date: September 15, 2015

Key Contacts

Back

What’s wrong with the arbitration process?

U.S. District Judge Richard Berman recently vacated NFL Commissioner Roger Goodell’s decision, as an arbitrator, to uphold the four-game suspension of the New England Patriot’s Tom Brady due to what he considered a faulty arbitration process. This decision won’t only affect the way the league and its players interact, it could also change the way arbitration processes work in entertainment.

Some talent-side litigators in Hollywood consider arbitration processes between their clients – directors, writers and actors among others – to be biased toward studios, the Hollywood Reporter explained. This is because the arbitration outfit that often oversees legal disputes in the entertainment business, JAMS, is generally assumed to prefer the studios over the individuals they employ. The for-profit organization is mysterious in that many of the details on cases it helps to work out aren’t exactly public, and there are many of these disputes.

Is JAMS biased toward studios?

The issue is, like Berman’s ruling that Goodell’s arbitration process was faulty, so too do many believe that JAMS’ own efforts to resolve cases may have problems, due to the fact that the organization may be anxious about losing business from Hollywood studios. Additionally, talent, the media outlet reported, generally has little influence in negotiating arbitration provisions. These factors combine to cost the actors, directors, writers and others millions of dollars annually.

“Every studio requires arbitration,” Neville Johnson, an anti-JAMS attorney, explained to the Hollywood Reporter. “It’s a stacked deck. You can’t win … Generally, there are only three ways to overturn an arbitration ruling. [The arbitrator] has to be drunk, bribed or he won’t let in relevant evidence.”

Johnson went on to call Berman’s decision and its potential subsequent effect on all sorts of future arbitration processes “one of the big issues in the coming century.”

Could the Berman decision change future arbitrations?

Going back to Deflategate for a moment, Berman didn’t decide that Tom Brady was not “generally aware” of the fact the footballs he was using were underinflated against league regulations, simply that Goodell’s decision to uphold his suspension was flawed. Leading up to the case between Brady and the league over the arbitration decision, there was the contention that Brady may lose due to the fact that judges often defer to arbitrators’ decisions. This, however, could not have been more wrong as evidenced by Berman’s thorough undressing of Goodell’s arbitration process. It indicated that just as much as the arbitrator’s final decision matters, so does the process.

Berman’s decision is likely to give talent-side litigators a confidence boost in future arbitration processes, The Hollywood Reporter noted. If the way JAMS approaches cases is faulty in ways similar to the way that Goodell handled the arbitration between the league and Brady, then the precedent set by Berman could begin to tilt the odds away from studios and back toward neutrality. Then actors, directors, writers, talent-side litigators and everyone else who may have disputes with studios have Brady and Berman to thank.

If you believe you may be involved in a flawed arbitration process, contact a lawyer with knowledge of entertainment law to determine how to shift the scale back in your favor

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now post image

A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now

Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]

Author: Sean M. Pena

Link to post with title - "A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now"
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses post image

Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses

When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]

Author: John D. Giampolo

Link to post with title - "Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses"
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know post image

Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know

For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]

Author: George McGowan

Link to post with title - "Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know"
Estate Planning for Digital Assets Under New Jersey Law post image

Estate Planning for Digital Assets Under New Jersey Law

As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]

Author: Marc J. Comer

Link to post with title - "Estate Planning for Digital Assets Under New Jersey Law"
The Role of Representation and Warranty Insurance in M&A Transactions post image

The Role of Representation and Warranty Insurance in M&A Transactions

In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]

Author: George McGowan

Link to post with title - "The Role of Representation and Warranty Insurance in M&A Transactions"
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What? post image

You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?

Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]

Author: Sean M. Pena

Link to post with title - "You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!