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In re Carrere
United States Bankruptcy Court for the Central District of California
64 B.R. 156 (1986)
In August 1985, actress Tia Carrere entered a personal-services contract with American Broadcasting Company (ABC) to perform on the soap opera General Hospital until August 1988. ABC guaranteed Carrere an average number of episodes per week and agreed to pay Carrere between $600 and $700 for each episode in which she performed. While Carrere’s contract with ABC was still in effect, Carrere agreed to appear on the show The A Team. If Carrere became a regular on The A Team, she would have made more money than if she stayed on General Hospital. In March 1986, Carrere filed a Chapter 11 bankruptcy petition and sought to reject her ABC contract. Carrere filed a declaration in support of her motion to reject the ABC contract, in which she made clear that her main goal in seeking bankruptcy protection was to reject the ABC contract so that she could enter the contract with The A Team. ABC opposed the rejection of its contract and also moved to dismiss Carrere’s bankruptcy proceeding, arguing that Carrere had filed for bankruptcy in bad faith.
Rule of Law
Holding and Reasoning (Mund, J.)
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