Written By: Leah C. Stevenson, Esq.
Growing up in the 90s, I was always fascinated by famous child stars who appeared in some of the well-known tv shows, sitcoms, and movies. Tia & Tamera Mowry (Sister Sister), the Olsen twins (Full House), Macaulay Culkin (Home Alone), Lindsey Lohan (The Parent Trap), Raven Symone (That’s So Raven), and Hilary Duff (Lizzie McGuire) are just to name a few. All of these young stars had amazing talent and we literally watched many of these actors grow up on screen. I often wondered how these child stars caught their big breaks at such young ages and how they managed to appear on our screens every day, while attending school and enjoying the pleasures of childhood as well. As I got older, I became more fascinated in the business affairs and legalities for minors in the industry and I wanted to learn more about the requirements and safeguards in place to protect minors in the entertainment industry. Thankfully, states such as California and New York have legal safeguards and protocols to protect the interests of minors. Below are just a few of the protocols and requirements parties must adhere to when contracting with minors in the entertainment industry.
Minors Can Disaffirm Contracts
One of the major legal issues for contracting with minors in the entertainment industry is that a minor can disaffirm the contract at any time while they are still a minor or at a reasonable time once they become an adult. While contracts with minors are enforceable, minors are still permitted to repudiate the contract on the grounds of infancy and by simply stating their parent or legal guardian lacked the requisite authority to enter into the agreement on their behalf. However, in California, a minor is not permitted to repudiate a contract that was approved by a superior court in any county of the state.
Judicial Approval for Contracts with Minors
New York, California, and other states have adopted laws regarding judicial approval of contracts with minors. While the procedure for acquiring judicial approval can be tedious and difficult to navigate, companies who employ minors often seek judicial approval to ensure minors cannot repudiate the agreements in the future. However, judicial approval is rarely granted solely by submitting documentation to the court and oftentimes, a hearing will be conducted where the contracting party, the parent/ legal guardian, the minor, and any parties of interest answer substantive questions regarding the contractual terms of the agreement. Generally, this hearing discusses the requirements of the minor, the term of the agreement, and other important factors that should be considered before rendering a decision.
The state laws of New York provide judicial approval is required for certain agreements for services of minors and the law dictates that the minor’s agreement cannot have a duration of more than seven years (New York’s Arts and Cultural Affairs Law §35.03). Alternatively in California, the laws require judicial approval of certain contracts, but there is no set limitation on the term of a minor’s contract in the state (Ca. Family Code §6750, et seq.).
Once judicial approval is obtained by a court of law, the minor is held to the legal standard of adult responsibility, and thus the minor cannot repudiate the agreement based on the defense of infancy. Additionally, the court will likely find a portion of the minor’s earnings must be held in a trust and set aside until the minor reaches the age of majority.
Coogan Trusts
Coogan Trusts were established to protect and hold the funds of minors in the entertainment industry and to protect the minors against parents and legal guardians squandering and misappropriating the funds during the minor’s infancy. Coogan Trusts were named after Jackie Coogan, who became the film industry’s first child star when he starred alongside Charlie Chaplin in 1921 and whose earnings were squandered by his parents. This particular trust was named after Coogan because his case helped to establish precedent to protect minors against misappropriation of funds by parents and legal guardians. The Coogan Act requires at least 15% of all child performer’s earnings to be set aside and remain in trust for them until they reach adulthood. Additionally, the Act provides that a trustee must manage the funds in accordance with strict investment guidelines whereby the funds can only be invested in certain securities or investments.
The Coogan Trusts, judicial approval, and other protocols and safeguards have been adopted by various states to protect the interests of minors in the entertainment industry. While these safeguards mandate additional requirements for parties who contract with minors, these protocols are imperative to protect the interests of minors who add significant value to the entertainment industry.
DISCLAIMER: The information provided on this website is solely for educational purposes and does not constitute legal advice. Instead, all information, content, and materials available on this website are for general informational purposes only. This website is not intended to create an attorney-client relationship between you and Leah C. Stevenson, Esq. and you should not act solely on the information given on this website without seeking the advice of a licensed attorney.
