ORIGINAL

LARRY R. FELDMAN (State Bar No. 45126) JOSHUA STAMBAUGH (State Bar No. 233834)

KAYE SCHOLER LLP

tf

Los Anselwsuportor Court

AUG 24 2011

1999 Avenue of the Stars, Suite 1700

Los Angeles, California 90067 Telephone: (310)788-1000 Facsimile: (310)788-1200 Attorneys for Plaintiff
EDWARD GRADINGER

* &

^EgcutlvoOfflcer/ciarh iDeputy

SUPERIOR COURT OF THE STATE OF CALIFORNIA

FOR THE COUNTY OF LOS ANGELES

B;C-468124
EDWARD GRADINGER, an individual,
Plaintiff,
COMPLAINT FOR:
v.

Case No. BC

(1) BREACH OF CONTRACT; AND

TWENTIETH CENTURY FOX FILM

CORPORATION, a Delaware corporation; and DOES 1 through 20, inclusive,

Defendants.

(2) BREACH OF IMPLIED COVENANT OF

GOOD FAITH AND FAIR DEALING

Plaintiff EDWARD GRADINGER complains and alleges as follows:

INTRODUCTION
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royalties and "bonus" payments for the television series "The Wonder Years," Defendant

Despite its express contractual obligation to pay Plaintiff Edwatd^jYadtngeS o 2 o$I S

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Twentieth Century Fox Film Corporation ("Fox") has decided to deny Mr. GradingeJgthe

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compensation that he has rightfully earned. Through his hard work and commitment to the
development of high quality television programming, Mr. Gradinger negotiated an agreement with
60315622 2.DOC COMPLAINT

New World Pictures, Ltd. that allowed Mr. Gradinger to enjoy the ongoing benefits of his
investments, and required New World to pay him royalty or "bonus" payments for The Wonder

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Years. Fox assumed that obligation from New World, but has now refused to pay Mr. Gradinger the bonus payments to which he is entitled. After having admitted its contractual obligation to pay
bonuses to Mr. Gradinger, and having actually paid these bonuses for overten years, Fox has now
decided simply not to live up to its agreement. Fox has materially breached its contract with Mr.

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Gradinger, who has now suffered, and continues to suffer, substantial damages.
PARTIES

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2.

Plaintiff Edward Gradinger (hereinafter "Mr. Gradinger") is, and at all relevant

times has been, a citizen of California and a resident of Los Angeles^ California.
3. Plaintiffis informed and believes that Defendant Twentieth Century Fox Film

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Corporation (hereinafter "Fox") is a Delaware corporation with its principal placeat 10201 West
Pico Boulevard in Los Angeles, California 90035.

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4.

Defendants Does 1 through20 inclusive (together with Fox, "Defendants") are sued

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under fictitious names because their true names and identities are as yet unknown to Mr.

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Gradinger. When Mr. Gradinger ascertains their names, he will amend this Complaint to allege
their true names and identities. Mr. Gradinger is informed and believed and therefore alleges that
each of Does 1 through 20 inclusive is responsible in some manner for Defendant Fox's material

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breaches of its contractual obligations which hascaused, and continues to cause Mr. Gradinger to
suffer damages, and that Does 1 through 20 inclusive, and each of them, proximately caused, at least in part, some or all of Mr. Gradinger's damages alleged in this Complaint.
JURISDICTION AND VENUE

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5.

This Court has jurisdiction over all causes of action asserted herein.

6.

Venue is proper in this Court pursuant to California Code of Civil Procedure 395

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because the Defendant resides in this County, the contract underlying this complaint was entered

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into in this County, and the contractual obligations set forth in this Complaint are to be performed
in this County.

60315622 2.DOC

COMPLAINT

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FACTUAL ALLEGATIONS

7.

On or about June 26, 1986, Mr. Gradinger entered into an employment agreement

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(the "Agreement") with New World Pictures, Ltd. ("New World"), which provided for Mr. Gradinger to perform services as the President of New World's television group. In the
Agreement, New World agreed to pay Mr. Gradinger various forms of compensation, including an

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annual salary and royalty or "bonus" payments for certain television series that were produced and
distributed during Mr. Gradinger's employment.

8.

Pursuant to paragraph 4(d) of the Agreement, Mr. Gradinger is entitled to bonus

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payments for any prime time network television series produced and distributed by New World, the first episode of which had commenced production during the term of Mr. Gradinger's
employment, which had its initial broadcast on a network basis over certain television networks, and for which not less than sixty-six (66) episodes of such series had been delivered to the network
during Mr. Gradinger's employment (a "Covered Series").

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9.

Pursuant to paragraph 4 (d)(ii) of the Agreement, Mr. Gradinger is entitled to

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receive certain bonus payments, per episode, for any Covered Series that had a "run" in domestic
syndication.

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10.

On or about January 24, 1990, and further revised on February 14, 1990 and

February 15, 1990, Mr. Gradinger entered into an amended agreement (the "Amended

Agreement") with New World, which released and discharged Mr. Gradinger from any and all

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duties and obligations under, and inconnection with, the earlier Agreement.1
11. The Amended Agreement provides that Mr. Gradinger continues to be entitled to all

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compensation described in Paragraph 4 of the original Agreement, including the bonus payments
for any Covered Series.

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Although the terms of the Amended Agreement are incorporated by reference into this Complaint, the Amended Agreement itself is not attached to the Complaint due to the
27

confidential nature of certain terms and conditions.

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60315622 2.DOC COMPLAINT

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12.

Paragraph 2(d)(i) of the Amended Agreement provides that The Wonder Years shall

be deemed a Covered Series for which Mr. Gradinger is entitled to bonus payments pursuant to
Paragraph 4 of the original Agreement.

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13.

Paragraph 2 (d)(iv) of the Amended Agreement included an expansion of domestic

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syndication for Covered Series to include "non-standard television," including basic cable, if the
Covered Series generates average gross receipts of 5250,000 per episode. 14. Between 1992-97, The Wonder Years first aired in domestic syndication, and Mr.

Gradinger was paid bonus payments pursuant to the terms of the Agreement and the Amended
Agreement.

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15.

In or about 1990-92, New World granted television distribution rights in The

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Wonder Years to Turner Program Services (now part of Warner Bros. Television Distribution) for an advance payment of approximately $570,000 per episode, without any allocation of the advance
between syndication and "non-standard television."

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16.

In 1997, the Agreement and Amended Agreement between Mr. Gradinger and New

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World were assigned to Fox, who assumed all rights, liabilities, duties and obligations of the
Agreement and Amended Agreement between New World and Mr. Gradinger.
17. Between October 1, 1997 and September 30, 1999, The Wonder Years was licensed

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to run on Nickelodeon (a cable network). On February 9, 1998, Fox wrote a letter to Mr.

Gradinger which confirmed that under the Amended Agreement, Mr. Gradinger was entitled to the
payment of royalties in connection with the cable broadcast of The Wonder Years on Nickelodeon. 18. Between October 1, 1999 and September 30, 2001, the license to run The Wonder

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Years on Nickelodeon (a cable network) was extended by two years. On July 16, 1999, Fox wrote

a letter to Mr. Gradinger which confirmed that under the Amended Agreement, Mr. Gradinger was
entitled to the payment of royalties in connection with the extended licensed broadcast of The
Wonder Years on Nickelodeon.

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19.

Between October 1, 2001 and September 30, 2004, The Wonder Years was licensed

to run on ABC Family (a cable network). On June 15, 2001, Fox wrote a letter to Mr. Gradinger

60315622 2. DOC

COMPLAINT

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which confirmed that under the Amended Agreement, Mr. Gradinger was entitled to the payment ofroyalties in connection with the licensed broadcast ofThe Wonder Years on ABC Family.
20. In or about 2007, The Wonder Years was licensed to run on ION Television (a
"non-standard television" station). Fox did not dispute that Mr. Gradinger was entitled to

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payments under the Amended Agreement for the run on ION Television, and paid Mr. Gradinger
the bonus payments he was entitled to under the Amended Agreement for this run.

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21.
22.

In our about October 2010, The Wonder Years was licensed to run on The Hub (a
On or about March 17, 2011, over ten years after Fox had conceded that Mr.

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cable network) for twenty-three (23) months.

Gradinger was entitled to bonus payments for The Wonder Years on both syndication and non
standard television runs, Fox has refused to pay Mr. Gradinger pursuant to the terms of the
Amended Agreement.
CAUSES OF ACTION

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FIRST CAUSE OF ACTION FOR BREACH OF CONTRACT

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(Against All Defendants)

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23.

Mr. Gradinger hereby realleges and incorporates by reference paragraphs 1through

22 above as though set forth in full herein.

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24.

On or about June 26, 1986, Mr. Gradinger and New World entered into the

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Agreement pursuant to which New World agreed to pay Mr. Gradinger various forms of
compensation, including an annual salary and royalty or "bonus" payments for certain Covered
Series.

25.

Pursuant to paragraph 4 (d)(ii) ofthe Agreement, Mr. Gradinger is entitled to

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24

receive certain bonus payments, perepisode, for any Covered Series that had a "run" in domestic
syndication.

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26.

On or about January 24, 1990, and further revised on February 14, 1990 and

February 15, 1990, Mr. Gradinger entered into an amended agreement (the "Amended

Agreement") with New World, which released and discharged Mr. Gradinger from any and all
duties and obligations under and in connection with the earlier Agreement.
5
60315622 2.DOC
COMPLAINT

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2

27.

The Amended Agreement provided that Mr. Gradinger continues to be entitled to

all compensation described in Paragraph 4 of the original Agreement, including the bonus
payments for any Covered Series.

3
4

28.

Paragraph 2(d)(1) of the Amended Agreement provides that The Wonder Years shall

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be deemed a Covered Series for which Mr. Gradinger is entitled to bonus payments pursuant to
Paragraph 4 of the original Agreement.

29.

Paragraph 2 (d)(iv) of the Amended Agreement included an expansion of domestic

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syndication for Covered Series to include "non-standard television," including basic cable, if the
Covered Series generates average gross receipts of $250,000 per episode. 30. In 1997,the Agreement and Amended Agreement between Mr. Gradinger and New

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World were assigned to Fox, who assumed all rights, liabilities, duties and obligations of the
Agreement and Amended Agreement between New World and Mr. Gradinger. Therefore,

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Defendants, and each of them, were obligated to pay Mr. Gradinger the bonus payments for
Covered Series for each run of The Wonder Years.

31.

On at least three separate occasions, Fox stated in writing to Mr. Gradinger that a.)

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The Wonder Years was a Covered Series under the terms of the Agreement and Amended
Agreement; and that b.) Mr. Gradinger was entitled to bonus payments for a run of The Wonder
Years on non-standard television.

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23

32.

Mr. Gradinger has at all times performed the terms of the Agreement entered into

on June 26, 1986 in the manner specified by the Agreement.

33.

Mr. Gradinger has at all times performed the terms of the Amended Agreement

entered into on January 24, 1990, and further revised on February 14, 1990 and February 15, 1990
in the manner specified by the Amended Agreement.

24

34.

Beginningon or about march 17, 2011, and continuing until the present,

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!

Defendants, and each of them, have failed and refused, and continue to refuse, to tender their

performance as required by the Amended Agreement. This includes that Defendants materially
breached the Amended Agreement beginning within the last year, by refusing to make bonus
payments to Mr. Gradinger for the run of The Wonder Years on The Hub network.
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60315622 2.DOC COMPLAINT

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35.

Mr. Gradinger reasonably relied on Defendants' commitment within the Amended

Agreement to make such bonus payments, and as a direct and proximate result of Defendants'

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4

failure to perform their obligations underthe Amended Agreement as alleged herein, Mr.

Gradinger has incurred damages in an amount to be quantified and proven at or before trial, but
exceeding the jurisdiction limit of this court.

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7

36.

As a further direct and proximate result of Defendant's failure to perform their

obligations under the Amended Agreement as alleged herein, Mr. Gradinger has suffered, and will

continue to suffer, consequential damages in an amount to be quantified and proven at or before

trial, but exceeding this Court's jurisdictional limit.
SECOND CAUSE OF ACTION FOR BREACH OF IMPLIED COVENANT OF GOOD
FAITH AND FAIR DEALING

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37.

(Against All Defendants)

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Mr. Gradinger hereby realleges and incorporates by reference paragraphs 1 through

36 above as though set forth in full herein.

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38.

Every contract includes an implied covenant of good faith and fair dealing.

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Defendants, through their authorized representatives, breached the implied covenant of good faith

and fair dealing by, inter alia, refusing to pay bonus payments to Mr. Gradinger for the run of The
Wonder Years on The Hub network, as required by the terms of the Amended Agreement.

39.

As a direct and proximate result of Defendants' actions, Mr. Gradinger has been

damaged in an amount to be quantified at or before trial but exceeding the jurisdictional limit of
this court.
// // //
// // //

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60315622 2.DOC

COMPLAINT

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PRAYER FOR RELIEF

WHEREFORE, Mr. Gradinger prays for judgment against Defendants, and each of them, as
more fully set forth below:

3
4
5

(A) (B)
(C)

On all causes of action, for compensatory damages according to proofat trial; For all costs of suit and fees, including reasonable attorney's fees as appropriate; and
Any other relief the Court may determine is appropriate.
Respectfully submitted
KAYE SCHOLEf^LLP

6
7

Dated: August 19,2011

8 9 10
a.
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Larry Be. Feldman

Attorneys for Plaintiff EDWARD GRADINGER

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60315622 2.DOC

COMPLAINT

ATTORNEY OR PARTY WITHOUT ATTORNEY (Name. SWa Bar number, and address): >. sBTa

ORIGINAL
FOR COURT USE ONLY

CM-010

"Larry R. Feldman (State Bar No. 45126) Josh Stambaugh (State Bar No. 233834)
Kaye" Scholer LLP
1999 Ave. of the Stars, 17th Floor
FAX NO.: 310.788.1200

JLBsD L08Ane"6ii6lgSrOourt

Los Angeles,
TELEPHONE NO.;
ATTORNEY FORWaffle):

CA 90067
310.788.1000

SUPERIOR COURT OF CALIFORNIA. COUNTY OF LOS AngeleS

street address: 111 N.
MAILING ADDRESS:

Hill

Strreet

cityandzip code: Los Angeles,

BRANCH NAME: CeH t Ta 1

CA 90 012

TO
CASENU^-4k81Z4
Counter I Joinder

CASE name: (jT] Unlimited

(Amount
demanded

Gradinger v. Twentieth Century Fox Film

Complex Case Designation
I I

Corporation
CIVIL CASE COVER SHEET

ILimited
(Amount
demanded is

JUDGE: Filed with first appearance by defendant (Cal. Rules of Court, rule 3.402) DEPT: Items 1-6 below must be completed (see instructions on page 2). 1. Check one box below for the case type that best describes this case:

exceeds $25,000) $25,000 or less)

Auto Tort

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[ I I

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factors requiring exceptional judicial management:

This case lH is

LXJ is not complex under rule 3.400 of the California Rules of Court. If the case is complex, mark the
d. t I Large number ofwitnesses
in other counties, states, or countries, or in a federal court

a.

I Large number ofseparately represented parties

issues that will be time-consuming to resolve

b. I IExtensive motion practice raising difficult or novel e. I I Coordination with related actions pending in one or more courts c [_J Substantial amount of documentary evidence f. [__] Substantial postjudgment judicial supervision
I nonmonetary; declaratory or injunctive relief c. I I punitive 3. Remedies sought (check all that apply): a. LKJ monetary b. |

4. Number ofcauses of action (specify): Breach of contract; breach of good faith & fair dealing
5. This case [__] is l_Xj is not a class action suit. 6. If there are any known related cases, file and serve a noticeof related case. (You mayuse form CM-015.)
Date: l

Larrv R.
tt_

Feldman (State Bar No.

(TYPE OR PRINT NAME)

45126)

r
(SIGNATURE OF PARTY OR ATTORNEY FOR PARTY)

NOTICE

Plaintiff must file this coversheet with the first paperfiled in the action or proceeding (except small claims cases or cases filed under the Probate Code, Family Code,or Welfare and Institutions Code). (Cal. Rules of Court, rule 3.220.) Failure tofile may result
in sanctions.

Filethis cover sheet in addition to any cover sheet required by local court rule.

If this case is complex under rule 3.400 et seq. ofthe California Rules ofCourt, you must serve a copy ofthis cover sheet on all
other parties to the action or proceeding.

Unless this is a collections case under rule 3.740 or a complex case, this cover sheet will be used for statistical purposes only.
Paso i of 2

Form Adopted lor Mandatory Usa

Judicial Council of California

CIVIL CASE COVER SHEET.

CM-01O|Rv. July 1,2007)

So^

Cal. Rules of Court, rules 2.30. 3.220. 3.4OO-3.403. 3.740:

US"
IUS

^*'" Standards ofJudicial Adminijiration, jld.3.10

ORIGINAL
shorttitle: Gradinger v. Twentieth Century Fox Film Icase number Dp ACO] J a
Loam

tffflltrf&fc

r lor Court

AUG 24 2011

^cutlveOflcer/Cfor*
. Deputy
CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

{CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION)

This form is required pursuant to LASC Local Rule 2.0 in all new civil case filings In the Los Angeles Superior Court.

Item I. Check the types of hearing and fill in the estimated length of hearing expected for this case:

JURY TRIAL? I X I YES CLASS ACTION? I

] YES LIMITED CASE? ['

) YES TIME ESTIMATED FOR TRIAL

IHOURS/I 1 1DAYS

Item II. Select the correct district and courthouse location (4 steps - Ifyou checked "Limited Case", skip lo Item III, Pg. 4):

Step 1: After first completing the Civil Case Cover Sheet Form, find the main civil case cover sheet heading for your case in the left margin below, and, to the right in Column A , the Civil Case Cover Sheet case typeyou selected.
Step 2: Check one Superior Courttype of action in Column B below which best describes the nature of this case.

Step 3: In Column C, circle the reason for the court location choice that applies to the type ofaction you have checked.
For any exception to the court location, see Los Angeles Superior Court Local Rule 2.0.
Applicable Reasons for Choosing Courthouse Location (see Column C below)
1. Class Actions must be filed in the Stanley Mosk Courthouse, Central District. 2. Maybe filed in Central (Other county, or no Bodily injury/Property Damage).
3. Location where cause of action arose.

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6, Location of property or permanently garaged vehicle. 7, Location where petitioner resides. Location wherein defendant/respondent functions wholly. 9, Location where one or more of the parties reside. 10 Location of Labor Commissioner Office
8.

Step 4: Fill in the information requested on page4 in Item III; complete Item IV. Sign the declaration.
A
t: o
0

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<

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<D
O.

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| A7210 Medical Malpractice-Physicians &Surgeons i A7240 Other Professional Health Care Malpractice

TO

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1..2..3..4., 8.

.= 3

1 2 . 4. 1., 2., 4.

t5>

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II
%
fc E
lit

1
Other

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1
1

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t 2., 4.

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LACIV 109 (Rev. 01/11)

LASC Draft 03-04

CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

LASC, rule 2.0

Page 1 of 4
LA-CV108

short title: Gradinger v. Twentieth Century Fox Film

.Gfirpoxation.
A
Civil Case Cover Sheet

CASE NUM8ER

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Type of Action (Check only one)

c
Applicable Reasons See Step 3 Above
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2"& ~ c
(0
(A
I-

1
E
n

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I A6013 Fraud (no contract)

1., 2., 3.
1 2., 3.

c
o

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[ 1 1
1

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2 1:
o

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o
w

2.

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I A6023 Wrongful Eviction Case

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0.

a*

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Of

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8
n

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e

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2.6

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LACIV 109 (Rev. 01/11)

LASC Draft 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

LASC, rule 2,0

Page 2 of 4

shorttiue: Gradinger v. Twentieth Century Fox Film

Corporation
A
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I A6003 Antitrust/Trade Regulation

I A8007 Construction Defect

1., 28.

Construction Defect (10)

a.

1 2., 3.

Claims Involving Mass Tort

(40)

E
o

I I
I

I A600B Claims Involving Mass Tort I A6035 Securities Litigation Case

| A6036 Toxic Tort/Environmental

1., 2., 8.

Securities Litigation (28)

o

1., 2., 8.

'to

Toxic Tort

>
o

Environmental (30)
insurance Coverage Claims from Complex Case (41)

1..2.,3.,8.

a.

I
I
I

| A6014 Insurance Coverage/Subrogation (complex case only)

I A6141 Sister State Judgment
I A6160 Abstract ofJudgment

1.. 2.5.8.

2., 9. 28.
2., 9. 2., 8.
2., 8.

if
c

Enforcement

I
I

I A8107 Confession of Judgment (non-domestic relations)

I A6140 Administrative Agency Award (not unpaid taxes)

Oi Judgment (20)

LU

I I A6114 Petition/Certificate for Entry of Judgment on Unpaid Tax I _] A8112 Other Enforcement of Judgment Case
RICO (27)
1/1

2., 8. 9.

I A6033 Racketeering (RICO) Case

1.,2.,8.

3 O
<U

JS
Q.

I
Other Complaints (Not Specified Above) (42)

I A6030 Declaratory Relief Only

I A8040 Injunctive Relief Only (not domestic/harassment)

1., 2., 8,

r TO 01

(O

2., 8. 1 2., 8.
1..2..8.

8
3= .2
O

I I
I
I

I A6011 Other Commercial Complaint Case (non-tort/non-complex) I A6000 Other Civil Complaint (non.tort/non-complex)
I A6113 Partnership and Corporate Governance Case
I A6121 Civil Harassment

Partnership Corporation Governance (21)

2., 8.

2.,39.

">

<=
o

Other Petitions ti
to

I I
I

I A6123 Workplace Harassment I A6124 Elder/Dependent Adult Abuse Case

I A6190 Election Contest

2., 3., 9.
2 3., 9.
2.

.2
o

o>
=

5;
.2 .2

(Not Specified Above)

(43)

I
I
I

I A6110 Petition for Change of Name

I A6170 Petition for Relief from Late Claim Law
I A6100 Other Civil Petition

2., 7,

's
1"

2., 3., 4., 8.

29.

1"

LACIV 109 (Rev. 01/11)

LASC Draft 03-04

CIVIL CASE COVER SHEET ADDENDUM

AND STATEMENT OF LOCATION

LASC, rule 2.0

Page 3 of 4

short title: Gradinger v. Twentieth Century Fox Fi.lm Corporation

CASE NUMBER

Item III. Statement of Location: Enter the address of the accident, party's residence or place of business, performance, or other

circumstance indicated in Item II., Step 3 on Page 1, as the proper reason for filing in the court location you selected.
REASON: CHECK THE NUMBER UNDER COLUMN C WHICH APPLIES IN THIS CASE

aooress: 111 North Hill

Street

~]l,[X]2.n3.n4.n5.LI36.D7. 8.LZ39.[ZI10.
CITY:

STATE:

ZIP CODE:

Los Angeles

CA

90012

Item IV. Declaration of Assignment: I declare under penalty of perjury under the laws of the State of California that the foregoing is true

and correct and that theabove-entitled matter is properly filed for assignment tothe Stanley Mosk
Central
(b),(c)and(d)].

courthouse In the

District of the Los Angeles Superior Court [Code Civ. Proa, 392 et seq., and LASC Local Rule 2.0, subds.

Dated:

f-Tf-S
PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDER TO PROPERLY COMMENCE YOUR NEW COURT CASE:

1.

Original Complaint or Petition.

2.
3.

If filing a Complaint, a completed Summons form for issuance by the Clerk.

Civil Case Cover Sheet form CM-010.

4.
5.

Complete Addendum to Civil Case Cover Sheet form LASC Approved CIV 109 (Rev. 01/07).
Payment in full of the filing fee, unless fees have been waived.

6.
7.

Signed order appointing the Guardian ad Litem, JC form FL-935, if the plaintiff or petitioner is a minor under 18 years of age, or if required by Court.
Additional copies of documents to be conformed by the Clerk. Copies of the cover sheet and this addendum must be served along with the summons and complaint, or other initiating pleading in the case.

tJ

LACIV 109 (Rev. 01/11)

LASC Draft 03-04

CIVIL CASE COVER SHEET ADDENDUM AND STATEMENT OF LOCATION

LASC, rule 2.0

Page 4 of 4