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Contracts Keyed to Calamari
Kagan v. K-Tel Entertainment, Inc.
Facts
The Plaintiffs are International Program Consultants, Inc. ("IPC"), and its principal shareholder, officer and director, Russell J. Kagan (collectively referred to as the "Plaintiffs"). The Defendants are K-Tel Entertainment, Inc. ("K-Tel") and Metro-Goldwny-Mayer/United Artists Entertainment Company ("MGM/UA")(collectively referred to as the "Defendants"). The Plaintiffs were "engaged" by K-Tel to "place a pilot and locate a distributor for a successful television series." The agreement between K-Tel and the Plaintiffs was never written down, however certain payments were made. The Plaintiffs placed the series with MGM/UA. K-Tel entered into a written agreement with MGM/UA in February 8, 1984 for MGM/UA "to pay certain fixed amounts for each episode." K-Tel fell into financial difficulty after producing only eight episodes of the program. As a result of this default, MGM/UA notified K-Tel that it was removing its producer. K-Tel declared bankruptcy. MGM/UA had paid K-Tel all the money it owed it at the time it was pulling its producer. In an attempt to remedy its default, K-Tel assigned its rights and obligation under the agreement to Hal Roach Entertainment, Inc. ("Roach"). MGM/UA was not a party to the assignment agreement, but did agree in a separate agreement to substitute Roach for K-Tel as a producer. The Plaintiffs brought this action to recover from MGM/UA certain monies (a 10% fee), promised to them by the producer (K-Tel and, later, Roach) under a theory of unjust enrichment.
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