Metro-Goldwyn-Mayer, Inc. v. Scheider

Producer Metro-Goldwyn-Mayer, Inc. (MGM) (plaintiff) planned to film a new television show. MGM hired actor Roy Scheider (defendant) to play the lead role in the pilot episode and then in the series if the show was commissioned by a network. In September 1971, the parties orally agreed to general terms and finances. Additional terms were negotiated while the pilot was filmed, with supplemental oral agreements being reached by February 1972. However, there was no agreement as to the start date for filming the series if it was commissioned. After filming the pilot, Scheider refused to film the series. MGM sued Scheider for breach of contract, seeking both damages and an injunction preventing Scheider from working for third parties during the period he should have been rendering services to MGM. Scheider countered that there was no enforceable contract to film the series because the parties never agreed to a start date for filming. Standard industry practice was that if a pilot was shown to a network in the winter, then it was expected to appear on television the following fall if commissioned. Both parties were aware of that custom and that filming for a fall show needed to start no later than June. The trial court originally concluded that there was a contract with industry custom supplying the missing term as to the start date. However, the court also found that the statute of frauds required that the agreement be in writing. Consequently, the parties’ oral agreement was unenforceable. The appellate division found the statute of frauds inapplicable and modified the trial court’s judgment to grant MGM the requested injunction. Scheider appealed to the New York Court of Appeals.