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Entertainment Law Question #11?


Here is a hypothetical sisutaion in which there may be more than one right answer. What do you think?

Reckless Records hired Eddie Executive to work for them for 2 years. Before his time with Reckless is up, he agrees to work for another company when he finishes his contract with Reckless. Reckless sues Executive for seeking other employment with competition while still working for them.

Reckless was represented by Andrea Attorney at the time Reckless made its deal with Executive. Executive signed the contract in a conference room in the record company's office, and Attorney was present. Attorney was introduced to Executive as "the lawyer for Reckless Records" and he was told that Attorney would answer any questions Executive might have about the contract. Executive was not represented by a lawyer at that meeting or before. Attorney did not tell Executive that he could or should have a lawyer of his own look over the contract before signing it. Executive asked a few questions....

...which Attorney answered truthfully and accurately. Later, when Reckless sued Executive for breach of contract, Executive claimed that Attorney had breached fiduciary duties owed to him and filed a cross-complaint against Attorney so alleging.

Is there any merit to Executive's cross-complaint against Attorney?

no, as no fiduciary duty was owed to EE by counsel, who clearly indicated that he represented RR, and offered only to answer questions that EE asked, not to advise or represent EE, nor was counsel under any duty to advise EE that he could/should consult his own attorney

HUH??

Goes to show, never sign any legal document without having it reviewed first by some form of legal advisor.

Lessons learned the hard way are usually retained the longest.

Agree with Nancy Kay, AA owed no fiduciary duty to EE. AA represented RR. There is no conflict of interest and no breach of fiduciary duty. If an attorney represents a company (corporation), the attorney does not concurrently represent the officers (EE).

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