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MCA Records, Inc. v. Newton-John

California Court of Appeal

90 Cal. App. 3d 18 (1979)

Facts

In 1975 singer Olivia Newton-John (defendant) entered an agreement with MCA Records, Inc. (MCA) (plaintiff) for Newton-John to deliver a certain number of recordings over a period of two to five years. Newton-John later stopped delivering recordings. MCA filed a breach-of-contract claim and sought injunctive relief. The court granted MCA a preliminary injunction restraining Newton-John from recording for another record company through 1982. Newton-John appealed, contending that MCA failed to guarantee minimum annual compensation of $6,000, which was statutorily required of employers seeking to enjoin an employee from rendering services to others. Newton-John argued that the $200,000 annual advance provided by MCA left less than $6,000 if she subtracted the costs of producing her records, which were contractually under her control. The California Court of Appeal granted certiorari.

Rule of Law

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Issue

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Holding and Reasoning (Fleming, J.)

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A "yes" or "no" answer to the question framed in the issue section;
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The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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