Forward of an anticipated look at Cannes Lions subsequent month, Michael Kassan has prevailed in his bid to maneuver to arbitration a lawsuit from UTA trying to block him from organising a brand new enterprise after his messy exit from the company.
Los Angeles Superior Court docket Choose Kerry Bensinger, in an order issued on Thursday, discovered that Kassan and UTA “didn’t exempt from arbitration” a declare that the corporate filed asserting that he’s barred from competing with MediaLink or from soliciting its workers and shoppers.
In a press release, UTA stated its focus is “on supporting the nice work MediaLink has at all times carried out and continues to do on behalf of its shoppers, and we sit up for unlocking new alternatives collectively.” It added, “We are going to proceed to pursue this matter by means of authorized channels and are assured that the info will prevail.”
On the ruling maintaining the case out of open courtroom, Sanford Michelman, a lawyer for Kassan, stated that “UTA broke its personal arbitration settlement, similar to it broke” his shopper’s contract.
“Kassan waived his severance which provides him the best to compete and UTA’s try at making an attempt to wreck him in public with these frivolous costs has failed,” he continued.
The authorized struggle erupted in March, with Kassan claiming that he resigned from UTA after being lied to about his tasks and privileges and the company saying it fired him for misusing firm funds. In an arbitration motion initiated by Kassan towards UTA naming chief government Jeremy Zimmer, he alleged that UTA fraudulently induced him to conform to a sale of MediaLink “solely to then stroll again the very guarantees made” concerning what he would oversee on the company and allowances for his particular bills finances. He resigned on March 6, allegedly preempting the company terminating him the following day.
UTA sued, accusing Kassan of treating firm cash as a “private slush fund.” It amended its grievance shortly after to drop claims for fraud and breach of contract, electing to litigate them in arbitration, however saved a sole declare for injunctive reduction.
The difficulty revolves round whether or not Kassan has to honor a noncompete clause. He argued he offered “good cause” when he exercised his proper to terminate his contract and isn’t certain by its restrictions. A day after Kassan stepped down, UTA presupposed to terminate him for “trigger.”
Agreeing with Kassan that the case doesn’t belong in open courtroom, Bensinger concluded that there’s “no dispute an arbitration settlement” covers UTA’s declare.
Beneath the so-called companion service settlement, Kassan agreed to “undergo closing and binding arbitration of all claims, disputes and controversies arising out of, regarding or in any approach related to my employment or its termination.” One other part of the settlement notes that the arbitration settlement is “meant by the events as a whole and unique assertion of the phrases” and “supersedes and replaces all prior or contemporaneous oral or written negotiations or agreements on the topic.”
The courtroom rejected arguments from UTA that there was a carveout within the settlement for a declare of injunctive reduction.
“Because the settlement directs, Plaintiffs should arbitrate their claims towards Defendants and should search injunctive reduction within the arbitral discussion board,” the order said.
UTA continues to pursue claims in arbitration, as does Kassan.
Kassan has confirmed that he plans to attend Cannes Lions Worldwide Pageant of Creativity, the place he might announce a brand new enterprise rivaling MediaLink.
In March, Kassan additionally sued UTA’s lawyer, Bryan Freedman, for defamation. The MediaLink founder accused Freedman of making an attempt to tarnish his popularity the course of UTA in a bid to stop workers and shoppers from following him to his subsequent enterprise.
The submitting of the lawsuit adopted UTA withdrawing some claims towards Kassan after it filed a grievance in courtroom moderately than in arbitration. Kassan despatched Freedman a letter threatening sanctions if he didn’t dismiss the lawsuit.