American Federation of Musicians of the United States and Canada v. Paramount Pictures Corp., No. 16-55996 (9th Cir. 2018)
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The Ninth Circuit reversed the district court's grant of summary judgment for Paramount in an action under section 301 of the Labor Management Relations Act. AFM filed suit alleging breach of Article 3 of the Basic Theatrical Motion Picture Agreement, a collective bargaining agreement, in connection with the motion picture, Same Kind of Different As Me, which was scored in Slovakia.
The panel held that the district court misinterpreted Article 3 to apply only if a signatory producer employs the cast and crew shooting the picture; Article 3 functions as a work preservation provision that dictates when a signatory has to hire those musicians; and Article 3 applied when a signatory studio produces a motion picture and has authority over the hiring and employment of scoring musicians. The panel held that there was a disputed question of fact as to whether Paramount produced the movie and had sufficient authority over the hiring of scoring musicians such that Article 3 applied. Finally, the panel rejected Paramount's affirmative defense that Article 3 violated the National Labor Relations Act's "hot cargo" prohibition and reversed two of the district court's evidentiary rulings.
Court Description: Labor Law. The panel reversed the district court’s grant of summary judgment in favor of defendant Paramount Pictures Corp. in an action brought under § 301 of the Labor Management Relations Act, alleging breach of a collective bargaining agreement in connection with the motion picture Same Kind of Different As Me, which was scored in Slovakia. The American Federation of Musicians of the United States and Canada, a bargaining representative for musicians, alleged breach of Article 3 of the Basic Theatrical Motion Picture Agreement of 2010, which required signatory movie studios to score domestically, with AFM musicians, any motion picture that the studios produced domestically. Paramount contended that Article 3 did not apply because it did not produce SKODAM. The panel held that the district court misinterpreted Article 3 to apply only if a signatory producer employed the cast and crew shooting the picture. The panel concluded that the Basic Agreement was a labor agreement involving scoring musicians, and Article 3 functioned as a work preservation provision that dictated when a signatory has to hire those musicians. Therefore, Article 3 applied when a signatory studio produced a motion picture and had authority over the hiring and employment of scoring musicians. Whether a studio also employed the cast and crew was not relevant to AFM V. PARAMOUNT PICTURES 3 Article 3. The panel held that, on the summary judgment record, it was a disputed question of fact whether Paramount produced SKODAM and had sufficient authority over the hiring of scoring musicians such that Article 3 applied. The panel rejected Paramount’s affirmative defense that Article 3 violated the National Labor Relations Act’s “hot cargo” provision, which prohibits an employer from entering into an agreement to cease or refrain from dealing in the products of another employer or to cease doing business with any other person. Paramount asserted that AFM’s suit to enforce Article 3 violated the hot cargo provision because AFM’s tactical objective was to force SKODAM Films, a neutral employer, to employ AFM musicians. The panel held that the hot cargo provision does not apply to valid work preservation agreements. The panel’s conclusion that there was a genuine dispute of material fact whether Paramount had authority over the hiring and employment of scoring musicians prevented summary judgment on the hot cargo defense. Reversing two of the district court’s evidentiary rulings, the panel held that the district court abused its discretion in excluding an expert report and an internal Paramount email. The panel remanded the case for further proceedings. 4 AFM V. PARAMOUNT PICTURES
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