2 Apr 2015

First reported by  The Hollywood Reporter

  VS.

As anticipated, Creative Artists Agency (CAA) has made their move.  They have filed a lawsuit against United Talent Agency (UTA) and two agents who defected from CAA to UTA, calling the defection a “lawless, midnight raid.”

Thursday, CAA filed with the Los Angeles Superior Court seven alleged causes of action which included claims of breach of fiduciarty duty, breach of duty of loyalty against agents Gregory Cavic and Gregory McKnight, as well as claims of intentional interference with contractual relations against UTA.  The filing does acknowledge that Cavic and Knight were not on contract with CAA, but allege that both were still “on CAA’s payroll  while still accepting generous compensation and benefits from CAA, claiming that they worked clandestinely with each other and UTA to induce a number of CAA employees to immediately terminate their employment with CAA to join UTA.”   The lawsuit further states that “At least three of the employees whom UTA, Cavic, and McKnight induced to leave CAA had entered into enforceable, ongoing contracts with CAA.”

The agents that were under enforceable, ongoing contracts with CAA included Jason Heyman, Martin Lesak and Nick Nuciforo, according to the lawsuit.   A lawsuit has not been filed against the three agents, however a separate arbitration proceeding will be initiated against them as part of the clauses in their CAA contracts which call for arbitrary action for breach of contract.

Further in the lawsuit claims were made that McKnight and Cavic solicited existing clients on behalf of UTA while still employed at CAA, accusing them of delaying meetings and deals with existing and potential CAA clients “in order to make it more likely that they would complete such deals after leaving CAA and becoming partners at UTA with the intent to divert as much of CAA’s business to UTA as possible.”  The suit also states that the two agents encouraged clients to avoid or alter relationships within CAA in anticipation of the move to UTA.

A damaging clause in the suit made alleged claims that Cavic and McKnight proposed that CAA clients co-sign deals with UTA at the Sundance Film Festival held in late January, which would support the claim that UTA and the two agents conspired to harm CAA.

Damages have not been alleged, but could be multiple millions.  Punitive damages and legal fees are also requested in the suit.

 See also Arbitration Proceedings Against Three Agents

See Also UTA Grabs more Agents, Clients from CAA