Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: April 20, 2015
The Firm
201-896-4100 info@sh-law.comWhat do Charlie Sheen, Tiger Woods and Rashard Mendenhall all have in common? All three were involved in legal disputes based on the moral turpitude clauses in their respective contracts.
A moral turpitude clause basically accounts for the fact that sometimes people make mistakes – or worse, just aren’t particularly responsible individuals to begin with – and that certain brands or businesses may not want to be associated with such persons following illicit behavior. Sometimes it’s difficult to judge character, and sometimes the opportunity is just too good to pass up, but often a moral turpitude clause is there to save business relationships turned sour due to one party’s misbehavior.
Remember when Charlie Sheen was winning? Remember Tiger Woods’ Escalade? Remember when Rashard Mendenhall publicly questioned celebration of Osama Bin Laden’s death? Each of these incidents led to a legal dispute, because each contract contained a moral turpitude clause that one party thought had been violated.
Let’s talk athletes for a bit. A large portion of many sports icons’ revenue comes via endorsement deals. The most popular athletes, and some quasi-famous ones, often tout massive contracts with a variety of companies eager to put the individual’s face on their brands.
Say a famed and beloved athlete has one such contract with a sneaker brand – the kids love him, he’s making millions through commercial deals and he is plastered on every street corner and television set in the country. Let’s say said athlete is consequently arrested with drug paraphernalia, narcotics intended for sale and weapons in his vehicle. That’s not a good look in front of the kids. It makes sense that the company would want to get out of it’s contract with the athlete – you don’t want a drug dealer selling shoes to the children. That’s where the clause comes in handy. The individual’s crime is immoral, and thus a violation of the clause and subsequently the contract, offering a perfect path out.
However, other times, such as in the case of Mendenhall, the action isn’t so much criminal as it is disagreeable. In his case, the suit was eventually settled privately. Whether something constitutes a violation of a moral turpitude clause is a case-by-case situation, but including one in a contract is often helpful for maintaining brand integrity through a crisis.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

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

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

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

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

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

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
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!