Stephen King Terminates Attorney

The New York Appellate Division for the First Judicial Department modified an order dismissing a civil case brought by an attorney against Stephen King’s literary agent

Plaintiff, an attorney, assisted defendant Arthur B. Greene, an accountant and financial manager, in various matters that Greene handled as a literary agent for Stephen King. While plaintiff was initially compensated on an hourly basis, in or about 1988, Greene began paying him a percentage of the commissions that he received from King on completed deals, with the percentage increasing over time to compensate plaintiff for work he was doing on projects that were not generating any revenue.

On March 30, 2012, plaintiff was terminated after King stated that he did not want him working on his business. At first, defendants continued to pay plaintiff a share of Greene’s commissions on completed work, but they soon stopped paying him. As a result, plaintiff commenced this action in which, in the now remaining causes of action, he seeks to recover, under theories breach of an oral contract, or alternatively, quantum meruit or unjust enrichment, a share of Greene’s commissions on revenue- generating projects on which plaintiff completed his work before he was terminated. Defendants contend that once plaintiff stopped providing services for Greene, he was not entitled to any further compensation, even on completed deals that were still generating commissions.

The court held that summary judgment was not appropriate on breach of contract claims and

The motion court found that defendants were not unjustly enriched because plaintiff was well compensated for his work over the years, and his compensation kept growing as a percentage of the amount Greene was paid. The court dismissed the quantum meruit claim upon the finding that plaintiff was paid through April 2012. However, material issues of fact exist with respect to whether plaintiff is entitled to some further compensation for the work he completed before his termination and for which he did not receive a share of the commission or any direct compensation at all (see Balestriere PLLC v Banxcorp, 96 AD3d 497, 498 [1st Dept 2012]). Material issues of fact also exist as to whether defendants were enriched by plaintiff’s work, and whether it would be unfair for defendants to retain that benefit without payment to plaintiff (see John Anthony Rubino & Co., CPA., P.C. v Swartz, 84 AD3d 599 [1st Dept 2011]).

A page turner.

Law 360 reported on the motions court ruling.

Kramer had filed suit in late 2012, claiming he’d had a “harmonious and highly productive” relationship with King over three decades, but Greene and his wife Susan Greene had sabotaged that connection by lying to King about Kramer’s compensation demands, resulting in his unfair termination.

(Mike Frisch)