It seems that when it comes to celebrities, one of the most common reasons for contract disputes is unpaid profits or royalties. And Chuck Norris is the latest celebrity to sue for unpaid profits. Norris, through his production company – Top Kick Productions – has sued CBS for profits from Walker, Texas Ranger.
What Is Breach of Contract?
When you sign a contract, it’s expected that each party to the contract will perform in accordance with the contract. If one party fails to fulfill its contractual obligations, it breaches the contract. A breach can occur in several instances including not performing at all, not performing on time, or not performing in accordance with the terms of the contract. Generally, breach of contract is the legal theory that a celebrity uses to sue for unpaid profits.
In Norris’s case, the suit alleges that CBS acted in a way to “collect significant fees and revenues” from the show to “materially breach the 23 Percent Profit Clause.” The suit also alleges that CBS breached the implied covenant of good faith and fair dealing by failing to account for and pay Top Kick’s revenue.
Related Resources:
- Contract Law (FindLaw’s Learn About the Law)
- Bill Nye, the Lawsuit Guy; Science Show Host Sues Disney for Unpaid Royalties (FindLaw’s Celebrity Justice)
- Very Live Lawsuit Claims AMC Stole ‘The Walking Dead’s’ Producers’ Money (FindLaw’s Celebrity Justice)
- Can Artists Who Are Minors Sign Contracts? (FindLaw’s Celebrity Justice)
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