Range Countersues CAA in Poaching Dispute

In an escalating legal battle, Range Media Partners has filed a counter-lawsuit against Creative Artists Agency (CAA) in Los Angeles Superior Court. This move, described as necessary due to CAA’s alleged misconduct, marks a significant development in the ongoing dispute over employee poaching and competition within the entertainment industry.

Background of the Dispute

The conflict began over a year ago when CAA accused Range of unlawfully poaching its talent. CAA, directed by Bryan Lourd, claimed that Range was misleading clients by operating as a management agency while also acting as a talent agency. In response to these claims, Range argues that it is defending its right to compete fairly.

Allegations in the Counter-Suit

Range’s counter-complaint asserts that CAA has actively worked to undermine its growth through intimidation tactics. Key allegations include:

• Violation of California’s unfair competition law.
• Tortious interference with employee mobility.
• Use of illegal noncompete agreements to threaten Range’s potential hires.

Legal Context

California law strictly prohibits noncompete agreements, a fact emphasized in Range’s filing. The counter-complaint highlights that CAA knowingly continues to enforce these void agreements, aiming to maintain control over its former employees who consider joining Range. It points out that only those employees contemplating joining Range face threats regarding their equity, while agents moving to other firms retain theirs.

Previous Arbitrations and Current Legal Maneuvers

The legal tussle has roots in past arbitrations. Several former CAA agents, now with Range, have been engaged in closed-door arbitration over denied equity, estimated in the tens of millions of dollars. CAA has also filed its own suit, alleging breach of fiduciary duty and tortious interference, further complicating the legal landscape.

Key Figures and Clients

Both companies have a shared portfolio of approximately 150 clients, including notable names such as:

• Michael Shannon
• Emilia Clarke
• Shailene Woodley
• Dan Levy

Injuries and Damages Sought

In its filings, Range seeks over $1 million in damages and an injunction to prevent CAA from continuing its allegedly unlawful practices. Notably, the arbitration process has reportedly been in Range’s favor, with arbitrators indicating that CAA’s noncompete clauses are illegal.

Future Implications

The dispute has broader implications for industry practices, especially as California’s Senate Bill 699, effective January 1, 2024, aims to make noncompete agreements illegal for California employees. Thus, the outcome of this case could influence the operations of agencies in the entertainment sector.

Conclusion

The counter-suit filed by Range signifies increasing tensions in the rivalry with CAA. As both parties prepare for a complex legal battle, the potential for changes in employee mobility and agency practices looms large over the industry.