2024 08 23 Respondent's Brief Pardoe V Salazar
2024 08 23 Respondent's Brief Pardoe V Salazar
2024 08 23 Respondent's Brief Pardoe V Salazar
B336831
vs.
Jude Salazar,
Respondent;
Rick Siegel
Intervener/Appellant;
Jude Salazar
3425 Motor Avenue, Apt 326
Los Angeles, CA 90034
562.294.1810
1
CERTIFICATE OF INTERESTED PARTIES
2
TABLE OF CONTENTS
I. INTRODUCTION ..................................................................... 9
3
4. The TAA Clearly States What Activity
It Regulates ...................................................... 31
5. The Statute, and Cases Interpreting it,
Provide Ample Notice of the Consequences
for Violation. ..................................................... 33
6. The Absence of Criminal or Civil Penalties
Does Not Make the Talent Agency Act
Toothless ........................................................... 35
7. The Rules of Statutory Construction Do Not
Mandate Any Result Except Avoidance .......... 39
8. The Statute and Case Law Give the
Commissioner Ample Standards to Guide
4
TABLE OF AUTHORITIES
Cases
5
Kashani v. Tsann Kuen China Enter. Co. (2004)
118 Cal. App. 4th 531................................................................ 49
Siegel v. Bradstreet,
360 Fed.Appx. 832 (9th Cir. 2009) ................................ 9, 20, 21
Siegel v. Su,
770 Fed.Appx. 877 (9th Cir. 2019 Mem.) ....................... 9, 20, 21
6
Styne v. Stevens (2001)
26 Cal.4th 46 ..................................................................... passim
US v. Evans (1948)
333 U.S. 483 .............................................................................. 36
Constitutions
7
Statutes
Cal. Lab. Code § 1700.4(a) ............................... 24, 31, 38, 41, 43, 45
Cal. Lab. Code § 1700.5 ................................... 17, 24, 32, 38, 43, 45
Other Authorities
8
I. INTRODUCTION
Unfortunately, this court has been dragged into Appellant
Rick Siegel’s decades-long crusade against the California Talent
Agencies Act, Cal. Lab. Code §1700, et seq. (the “TAA”).1 Not
surprisingly considering Appellant’s history of cases, the appeal
starts with an erroneous position – that because the TAA does
not include a specify for violations of the outright bar against
procurement, neither the Labor Commissioner nor the Courts can
void (in whole, or in part) management contracts for
commissions, or order disgorgement of commissions paid under
such contracts.
The simple reality is that the TAA is remedial in purpose,
9
that is in no way limited to the TAA. Instead, Appellant seeks to
distort the simple principle that the underlying contract – as an
illegal contract – is unenforceable as matter of law with the
assertion that a remedy was “created” by the Labor
Commissioner. The unenforceability of a contract (and
appropriate severance) – as recognized by Cal. Civ. Code §1598
and 1599 does not constitute a “remedy” but rather a reality as
reflected by this District’s statement with great clarity in
Waisbren v. Peppercorn Productions, Inc. (1995) 41 Cal.App.4th
246, 261-262 (partially overruled by Marathon Entm 't, Inc. v.
Blasi [2008] 42 Cal. 4th 974, 986 ["Marathon"] with respect to the
doctrine of severance) where this District stated:
10
criminal penalties, in part because “the most effective
weapon for assuring compliance with the Act is the
power ... to ... declare any contract entered into
between the parties void from the inception.” (Id. at
p. 17.) By following the Commission’s advice and
not enacting criminal penalties, the Legislature
approved the remedy of declaring agreements
void if they violate the Act. Thus, an agreement
that violates the licensing requirement is illegal
and unenforceable despite the lack of criminal
sanctions.
11
is a party.” (Wong v. Tenneco, Inc. (1985) 39 Cal.3d
126, 135, 216 Cal.Rptr. 412, 702 P.2d 570, citation,
italics, and internal quotation marks omitted; see
also Hydrotech Systems, Ltd. v. Oasis Waterpark
(1991) 52 Cal.3d 988, 997-1002, 277 Cal.Rptr. 517,
803 P.2d 370 [unlicensed contractor cannot sue for
fraud].)”
(Emphasis added.)
Appellant’s primary argument against this long-standing
situation is to reference an erroneous aspect of Wood v. Krepps
(1914) 168 Cal. 382, one of the key cases upon which the 1967
case of Buchwald v. Superior Court (1967) 254 Cal.App.2d 347,
351 relied in holding that an illegal contract could not be
12
Here, there is no dispute that the TAA is a remedial statute
for the protection of artists3 and the existing precedent under the
TAA mandates the affirmation of the trial court’s judgment and
dismissal of the appeal.
II. STANDARD OF REVIEW
Respondent notes that Appellant failed to identify any
standard of review. Considering that the arguments presented by
Appellant focus on the interpretation of the Talent Agencies Act,
Cal. Lab. Code §1700, et seq., and legal standards relating to the
relief ordered by the Superior Court (i.e., voiding the
management agreement on the grounds of illegality and ordering
disgorgement of fees paid under the illegal contract), Respondent
13
51 Cal.4th 524, 529 (questions of statutory construction are
reviewed de novo).
III. STATEMENT OF THE CASE – PROCEDURE
Plaintiffs Diane Pardoe and Sarah Pardoe filed their
original breach of complaint (22STLC0463) on June 17, 2022
(Appendix Document [“Doc.”] 1). Subsequently, Respondent
Salazar filed a motion to stay with the Superior Court based on
the controlling California Supreme Court precedent, e.g., Styne v.
Stevens (2001) 26 Cal.4th 46 which mandates a stay of the action
where a colorable claim is raised under the TAA because the
California Labor Commissioner had exclusive original
jurisdiction to determine whether Salazar's claims fall within the
14
was void ab initio. They were ordered to disgorge all profits in the
amount of $8,713.74. Doc. 12.
On March 2, 2023, Plaintiffs along with their “non-attorney
representative, Rick Siegel” (now Appellant/Intervener), filed an
appeal of the Labor Commissioner’s decision with the Superior
Court thus creating the case on which this appeal is based --
LASC Case No. 23STCP00683. In an effort to consolidate the
claims, Respondent filed a notice of related cases in both
22STLC0463 and 23STCP00683. On July 28, 2023, Judge Meiers
ordered that 22STLC0463 and 23STCP00683 were related and
that they all be transferred to her so they may be heard in the
same courtroom. Doc. 13.
15
23STCP00683 was that the Plaintiffs’ conduct violated the Talent
Agencies Action (Cal. Lab. Code §1700, et seq,) and the
agreement was thereby illegal, and hence the breach of contract
case on the same agreement was barred. Plaintiffs were unable to
present valid arguments on the res judicata/collateral estoppel
issues, and Judge Meiers ordered the case dismissed with
prejudice. Doc 27.5
On February 9, 2024, Appellant filed an appeal of case no.
22STLC0463 (the original breach of contract action) which is
pending before the Appellate Division of the Superior Court. By
his own admission via email to Respondents, Appellant
attempted to merge the two related appeals, but was unable to do
16
unconstitutional and that the California courts which have
interpreted the TAA are wrong. AOB, p. 17.
The TAA provides that “[n]o person shall engage in or carry
on the occupation of a talent agency without first procuring a
license therefore from the Labor Commissioner.” Cal. Lab. Code §
1700.5. Section 1700.4 defines a “[t]alent agency” as “a person or
corporation who engages in the occupation of procuring, offering,
promising, or attempting to procure employment or engagements
for an artist or artists . . . .”
Appellant here challenges the constitutionally of the TAA
on several grounds: Appellant erroneously asserts that (1) the
TAA is unconstitutionally vague on its face and as applied
17
decided over the past 50+ years, or outright distortions of the
operative law.
B. Summary of Argument
Appellant makes a facial and as applied challenge to a
statutory scheme that has been validly applied for more than 25
years, including by California’s highest court.
The TAA is not unconstitutionally vague simply because
the Legislature adopted a framework that delegates the initial
determination of factual disputes to the Commissioner. The
statutory scheme clearly prohibits unlicensed persons from
procuring employment for artists, and leaves it to the
Commissioner and the courts and to determine whether
18
applicability of this rule to personal managers’ contracts has been
affirmed by the California Supreme Court and every court of
appeal to consider the issue.
Appellant argues that because the TAA itself does not
provide a remedy for violation of its licensing requirement,
persons not in the “occupation of talent agent” (i.e., unlicensed
personal managers) are free to ignore it. But the absence of
criminal or civil penalties does not make the TAA toothless. In
enacting the TAA, the California Legislature wisely authorized
the Commissioner to resolve what are inherently fact-specific
controversies, and apply statutory concepts to complex situations
arising in a specialized industry. The Commissioner, with the
19
Appellant is no stranger to this court at both the state and
federal level and has managed to use this case as an opportunity
to resurface arguments he brought against the Labor
Commissioner, in 2008 and 2018. Both of his cases were
dismissed with prejudice. See, e.g., Siegel v. Bradstreet, 360
Fed.Appx. 832 (9th Cir. 2009), affirming 2008 WL 4195949, *3-4
(C.D. Cal. 2008) (unpublished case rejecting a variety of
arguments by Mr. Siegel that challenged the constitutionality of
the Talent Agencies Act, including due process arguments that
the Act fails to provide notice as to what may be a violation and
that the Act does not specify remedies); see also, Siegel v. Su, 770
Fed.Appx. 877 (9th Cir. 2019 Mem.), affirming 2018 WL 1393984
20
As Appellant did before, he once again attempts to sidestep
the line of governing California cases construing the TAA, and
urges this Court instead to focus only on the text of the statute
and authorities that have nothing to do with the TAA, and then
conduct his own de novo interpretation of California law.
Compare, Siegel v. Bradstreet, 360 Fed.Appx. 832 (9th Cir. 2009),
affirming 2008 WL 4195949, *3-4 (C.D. Cal 2008); see also, Siegel
v. Su, 770 Fed.Appx. 877 (9th Cir. 2019 Mem.), affirming 2018
WL 1393984 (C.D. Cal. 2018). 6
V. LEGAL BACKGROUND
A. Purpose of the TAA
As recently as 2009, the California Legislature reaffirmed
21
services by prohibiting or restricting false or
misleading advertising and other unfair, dishonest,
deceptive, destructive, unscrupulous, and fraudulent
business practices by which the public has been
injured in connection with talent services.
Id.
The stated purpose of the Act is remedial. For example, an
agent must have his form of contract approved by the Labor
Commissioner, maintain his client’s funds in a trust fund
account, record and retain certain information about his client,
refrain from giving false information to an artist concerning
potential employment, and refrain from sending talent to
dangerous places. See Cal. Lab. Code §§ 1700.23, 1700.25,
22
R4 1985, p. 36.4.7 In 1978, the Legislature considered, but opted
not to establish, a separate licensing scheme for personal
managers, but did change the statute’s name from the Artists’
Managers Act to the Talent Agencies Act. Marathon, 42 Cal. 4th
at 984-85. 8
In 1982, the Legislature provisionally amended the TAA to
add a one- year statute of limitations, eliminate criminal
sanctions, and establish a “safe harbor” for managers to procure
employment if they collaborated with a licensed agent. Marathon,
42 Cal. 4th at 985. The Legislature also established a 10-member
California Entertainment Commission (the “Entertainment
Commission”), including three each of agents, managers and
23
Entertainment Com. Rep., pp. 22–34). Marathon at 985. The TAA
has remained largely unchanged ever since. Id.
C. Mechanics of the TAA
The TAA defines what a talent agency is by describing the
scope of the activities (§1700.4) and declares that no person shall
engage those activities without a license (§1700.5). The TAA’s
definition of a talent agency narrowly focuses on conduct
intended to secure professional “employment or engagements” for
an “artist or artists.” § 1700.4(a). “Thus, it does not cover other
services for which artists often contract, such as personal and
career management (i.e., advice, direction, coordination, and
oversight with respect to an artist’s career or personal or
24
corporation, any manager—is a talent agency subject
to regulation. (§§ 1700, 1700.4, subd. (a).)
Consequently, as the Courts of Appeal have
unanimously held, a personal manager who solicits or
procures employment for his artist-client is subject to
and must abide by the Act.
25
provisions. Marathon, 42 Cal. 4th at 981 (citing Styne v. Stevens,
supra, 26 Cal. 4th at 54–56 and § 1700.44(a)). But the
Commissioner’s determinations are not final; either party may appeal
to the superior court within 10 days. § 1700.44(a). If no trial de novo
is requested (or is requested but no bond is posted), the prevailing
party may petition to confirm the Commissioner’s award and enforce
the resulting judgment. Buchwald v. Katz, (1972) 8 Cal. 3d 493, 500.
The appealing party is entitled to a de novo hearing in the
superior court, not simply a review of the Commissioner’s
proceedings. Id. at 498. Still, in the de novo trial parties can and do
rely on evidence, testimony and pleadings presented in the
Commissioner’s hearing. Id.; see also Marathon, 42 Cal. 4th at 982.
26
conduct that it is unconstitutionally overbroad”). The present
complaint seeks this sweeping relief against the entire TAA.
AOB, p. 59. Where the complaint does not charge statutory
overbreadth, “a facial challenge must fail where the statute has a
plainly legitimate sweep.” Washington State Grange v.
Washington State Republican Party, (2008) 552 U.S. 442, 449.
In contrast, the typical as-applied attack challenges only
one of the rules in a statute, a subset of the statute’s applications,
or the application of the statute to a specific factual circumstance,
under the assumption that a court can “separate valid from
invalid subrules or applications.” Hoye v. City of Oakland, (9th
Cir. 2011) 653 F.3d 835, 857, quoting Richard H. Fallon, Jr., As-
27
difference between an as-applied and a facial challenge lies only
in whether all or only some of the statute’s subrules (or fact-
specific applications) are being challenged, the substantive legal
tests used in the two challenges are ‘invariant.’” Hoye, supra, 653
F.3d at 857–858., quoting Legal Aid Services of Oregon, supra, 608
F.3d at 1096. In other words, how one must demonstrate the
statute’s invalidity remains the same for both types of challenges,
namely, by showing that a specific rule of law, usually a
constitutional rule of law, invalidates the statute, whether in a
personal application or to all. See Nat’l Abortion Fed’n v. Gonzales,
(2d Cir. 2006) 437 F.3d 278, 293-94.
2. Applicable Standards for Facial Challenge
28
(9th Cir. 1980) 623 F.2d 624, 626 (statute is not
unconstitutionally vague if it gives fair warning of the proscribed
conduct). A statute may be found to be unconstitutional if it “is so
standardless that it authorizes or encourages seriously
discriminatory enforcement.” Holder v. Humanitarian Law
Project, (2010) 130 S. Ct. 2705, 2718 (quoting United States v.
Williams, (2008) 553 U.S. 285, 304). But the Due Process Clause,
under which a vagueness challenge falls, does not present an
“insuperable obstacle to legislation” by demanding impossible
standards of precision for criminal laws. United States v. Petrillo,
(1947) 332 U.S. 1, 7; see also Holder, 130 S. Ct. at 2719 (“We have
said that when a statute ‘interferes with the right of free speech
29
labels"]). Appellant argues that it there is clear intent on the part
of the legislature to regulate managers and that the California
Supreme Court’s “holding is wrong” and urges a different reading
of state law. Doc. 4. But even if this Court were inclined to agree
with Appellants’ interpretation of state law, it is “constrained to
defer to the highest state court on a matter of state law and may
not construe [state law] differently than did the [state] Supreme
Court.” Styers v. Ryan, (9th Cir. 2015) 811 F.3d 292,297 n.5.
Marathon and Styne make clear that, as a matter of California
law, the TAA “establishes its scope through a functional, not a
titular, definition. Marathon, 42 Cal. 4th at 986.
The California Supreme Court in Marathon, was in fact
30
4. The TAA Clearly States What Activity It
Regulates
The Act, remedial in nature, provides that only licensed
talent agents -- and not unlicensed managers such as Plaintiffs --
can perform the services of talent agents, which are defined as
"procuring, offering, promising, or attempting to procure
employment or engagements for an artist . . . ." See Cal. Lab.
Code §§1700.4(a) [defining what constitutes a talent agency],
1700.5 [setting forth basic licensing requirement for all persons
who engage in the conduct of a talent agent]; Park v. Deftones,
(1999) 71 Cal.App.4th 1465, 1469-1471; Waisbren v. Peppercorn
Productions, Inc., (1995) 41 Cal.App.4th 246, 252-255. Thus,
31
misguided. Labor Code section 1700.5 expressly provides that
“[n]o person shall engage in or carry on the occupation of a talent
agency without first procuring a license therefore from the Labor
Commissioner.” That simple phrase cannot be interpreted other
than as exclusively reserving procurement activity to licensed
talent agents. See, Marathon, 42 Cal. 4th at 986.
In contrast, a person may counsel and direct artists in the
development of their professional careers, other otherwise
“manage” artists – while avoiding any procurement activity
(procuring, promising, offering, attempting to procure artistic
employment of engagements) – without the need for a talent
agency license. In addition, such person may procure non artistic
32
the Plaintiffs (i.e., the Pardoes) “procured” work as they admitted
the fact.
5. The Statute, and Cases Interpreting it, Provide
Ample Notice of the Consequences for
Violation.
It is clear that the consequences for violating the TAA are
contract illegality and voidness. Appellant contends that the
Legislature has never enacted an express penalty for doing so
without a license. AOB, p. 7. But what the Appellant does is ask
the Court to ignore one of the most fundamental tenets of the law
– that the Courts will not enforce illegal contracts – as well as
decades of precedent applying that principle. For example,
33
4th at 992 n.11 (approving Styne), 994 ("the Labor Commissioner
has the 'power' to void contracts"); Yoo v. Robi, (2005) 126 Cal.
App. 4th 1089, 1103 ("California courts have uniformly held that
a contract ... is void ab initio"); Waisbren v. Peppercorn Prods.,
Inc., (1995) 41 Cal. App. 4th 246, 261; Buchwald v. Superior
Court, (1967) 254 Cal. App. 2d 347, 351 (1967).10
Contrary to Appellant’s contention, the Labor
Commissioner is not prescribing a penalty beyond what the
legislature prescribed. AOB, p. 42. It is simply finding the
contract is unenforceable based upon illegality. These findings
should be considered in the context that earlier versions of the
TAA included a criminal sanction, but the Legislature removed it
34
licensing requirements is illegal and unenforceable despite the
lack of criminal sanctions.” Waisbren, 41 Cal. App. 4th at 262; see
Yoo, 126 Cal. App. 4th at 1104. This long-standing interpretation
of the TAA is no mystery, especially to a sophisticated repeat
player like Appellant.
6. The Absence of Criminal or Civil Penalties
Does Not Make the Talent Agency Act
Toothless
Appellant argues that “as the TAA has no prohibitionary
statute or penalty provision…it is clear the Act as it has been
enforced against Appellants and others is extrajudicial and
unconstitutional.” AOB, p. 38, ¶ 2. By Appellant’s reasoning,
35
The fact that the artist’s remedy may operate to the
detriment of an unlicensed manager does not transform that
remedy into a penalty, criminal or otherwise.11
Appellant also argues that the Commissioner has created a
remedy that the Legislature withheld. AOB, p. 28, ¶ 1, citing
Dyna-Med, Inc. v. Fair Employment & Housing Comm., (1987) 43
Cal. 3d 1385, 1388. However, in sharp contrast to the simple
declaration that the management contract is illegal,
unenforceable and supports disgorgement as to commissions, in
Dyna-Med, Inc., the Fair Employment and Housing Commission
imposed punitive damages against an employer without
statutory authority. The California Supreme Court found that
36
serve but one purpose—to punish and through punishment, to
deter.” 43 Cal. 3d at 1387–1388. Therefore, the imposition of
punitive damages without specific statutory authority was
unsupported and was not a recognized corollary for the purported
improper conduct. Here, avoidance of an illegal contract is not
punitive, it is simply a matter of how the law works.
Moreover, avoidance is purely remedial and neither
punitive nor compensatory. Also, the civil remedy of contract
avoidance is not the invention of the Commissioner, but the
consequence of the ancient rule that courts will not enforce an
illegal contract. (e.g., Wood v. Krepps, (1914) 168 Cal. 382, 386).
This is recognized by the California Supreme Court in Marathon
37
and limits those who can engage in such conduct; the result is
that contractual arrangements in violation are illegal. Cal. Lab.
Code §§1700.4(a) and 1700.5.
The cases that Appellant cites fail to give any support to its
position. For example, in Dyna-Med, Inc. v. Fair Employment &
Housing Com the Fair Employment and Housing Commission
imposed punitive damages against an employer. The California
Supreme Court held that the purpose of the FEHA is to provide
effective remedies to eliminate discrimination, and noted that the
statutorily authorized remedies were exclusively corrective and
equitable in nature, designed to make employee whole. “Punitive
damages, by contrast, are neither equitable nor corrective;
38
7. The Rules of Statutory Construction Do Not
Mandate Any Result Except Avoidance
Appellant attacks the entire TAA and states that by
accepting, adjudicating and ruling on petitions for controversy
against “managers,” the Labor Commissioner and all involved
knowingly and inexplicably ignore a multitude of rules of
statutory construction. AOB, p. 9. In support, Appellant provides
a list of rules he believes have been violated all entirely based on
his inexcusable misinterpretation of the TAA.
Respondent hereby attempts to clarify and answer each of
Appellant’s continued false contentions and misinterpretation of
statutory construction rules as follows:
contract voidance.
39
however other licensing schemes are structured, the Legislature
void.
the text of both Cal. Lab. Code §§1700.4 and 1700.5, only a
argues that the TAA violates it because the history of the TAA
p. 32, ¶ 1. The TAA has always had clear legislative intent and
supra, 26 Cal. 4th at 50, 51; see also Marathon, 42 Cal. 4th at 984.
40
Rule 5: “Presumption may not be used in determining a
the meaning of a statute are the persons who are subject of the
agency.”
41
Rule 8: “The purpose of defining a word within a statute is
so that that its ordinary (dictionary) meaning is not implied or
assumed.” U.S.C Rules of Statutory Construction, rule 8.
Appellant argues that the TAA violates Rule 8 because the Talent
Agencies act is silent on the proper remedy for illegal
procurement. AOB, p, 34. As noted above, when the Legislature
decided to eliminate criminal sanctions from the TAA, it left
untouched and approved the existing civil remedy of contract
avoidance and the administrative mechanism that governs how
and when it is applied. Entertainment Com. Rep., pp. 17-18.
Rule 10: “It is a violation of due process of law to employ a
‘statutory presumption,’ whereby the reader is compelled to guess
42
v. Curry, (1993) 13 Cal.App.4th 616, 628 and in Marathon, (2008)
42 Cal.4th at 987.
Rule 12: “Expressum Facit Cessare Tacitum Rule: what is
expressed makes what is silence cease: where we find express
declaration we should not resort to implication.” U.S.C Rules of
Statutory Construction, rule 12. Appellant argues that the TAA
violates Rule 12 because they feel that the Commissioner’s
interpretation of the TAA is not just unsupportable, it is absurd
and extrajudicial. AOB, p. 42, ¶ 2. Once again, Appellant ignores
that (a) more than 100 years of common law establishes that
contracts in violation of law are unenforceable, (b) statutory
authority enacted in 1872, and (c) decades of cases enforcing
43
protection of talent, and where someone other than a licensed
talent agent engages in procurement, the conduct is illegal.
What is so confusing about that?
Rule 15: “Judges may not extend the meaning of words
used within a statute, but must resort ONLY to the meaning
clearly indicated in the statute itself.” U.S.C Rules of Statutory
Construction, rule 15. Appellant argues that the TAA violates
Rule 15 of statutory construction because there is no specified
prohibition or remedy included in the statute. AOB, p. 44, ¶ 3.
Here, avoidance of an illegal contract is a commonly recognized
remedy based upon illegality, and therefore well within the
authority delegated to judges or administrative agencies.
44
8. The Statute and Case Law Give the
Commissioner Ample Standards to Guide Her
Exercise of Discretion
Appellant argues that Respondent’s case is the first and
only time the Commissioner has found CA Civil Code §1598 and
§1599 gives her authority to void the contractual rights of
unlicensed procurers who violate CA Labor Code §1700.4 (a) and
1700.5 and therefore makes the TAA the epitome of
unconstitutionally vague. AOB, p. 47-48. However, as this Court
is aware, these statutes enacted in 1872 simply reflected common
principles of common law recognized by the legislature at that
time. These are not new provisions; they are statutory
45
Finally, administrative deference is unnecessary because
the statutory phrase, “procure employment” is unambiguous. In
sum, Appellant cannot carry its burden to show both that the
statute is so vague that a person of ordinary intelligence cannot
ascertain what is prohibited, or that it is impermissibly vague in
all of its applications, or that it is in any way unconstitutional as
applied to personal managers.
B. NEITHER THE TAA NOR ITS APPLICATION
VIOLATE THE THIRTEENTH AMENDMENT
Appellant contends that since a violation of the TAA sets
up a basis for avoiding a covered contract, it deprives personal
managers of compensation for unlicensed services and therefore
46
railroad workers who refused to become members of labor unions
challenged the constitutionality of union shop clauses in the
collective bargaining agreements between the unions and the
railroads. The challenged clauses permitted the unions to order
the employing railroads to dismiss the plaintiffs. The Ninth
Circuit rejected the workers’ contention that this arrangement
resulted in their involuntary servitude. Even though quitting
would cause the workers serious financial hardships, the
Thirteenth Amendment did not apply because the workers were
“not being compelled or coerced to work against their will for the
benefit of another.” Id. at 138.
Likewise here, the fact that Appellant and Plaintiffs’ can
47
punishments inflicted.” However, Appellant’s argument relies on
his continued misinterpretation that the Act has no fine, no
penalty and no consequence and therefore the Commissioner’s
application and enforcement of contract voidance is a violation of
the Excessive Fines Clause. AOB, p. 49, ¶ 3.
But that argument is directly foreclosed by Marathon,
Waisbren, and the general rule of contract voidness in California
law. In Marathon, the California Supreme Court affirmed that
the right approach is to interpret the TAA in light of general
contract law, "giving effect to both." Marathon, 42 Cal. 4th at 991.
The touchstone is legislative intent; and for the TAA, the
Legislature specifically removed the existing criminal sanction
48
person['s]" purported lack of knowledge of the Civil Code does not
transform their illegal contract into a legal one.
Along the same lines, Appellant has attempted to argue
that the TAA is vague because it is structured differently than
other licensing statutes. AOB, p. 28-31. This line of argument is
irrelevant; as demonstrated above, licensing schemes differ, and
however other licensing schemes are structured, the Legislature
clearly intended that contracts made in violation of the TAA be
void.
This line of argument is also overstated. Some licensing
schemes include an explicit prohibition on recovery for unlicensed
work. ·See, e.g., Cal. Bus. & Prof. Code § 7031 (contractors); Cal.
49
see also McIntosh v. Mills, (2004) 121 Cal. App. 4th 333 (illegal
fee-sharing agreement).
In this respect, the TAA is no more vague than other
licensing statutes. Although other licensing schemes include both
a criminal penalty and contract voidness, the TAA, the
Legislature determined that the lesser penalty of contract
voidness was sufficient. Entertainment Com. Rep., pp. 17-18.
Presumably Appellant, a personal manager and repeat offender,
would not want the Legislature to add back a criminal sanction
for violations of the TAA.
VII. CONCLUSION
For all the foregoing reasons, Respondent respectfully
50
CERTIFICATE OF WORD COUNT
(California Rules of Court, Rule 8.204(c)(1))
The undersigned Respondent in pro per hereby certifies
that pursuant to Rule 8.204 of the California Rules of Court, the
foregoing Respondents’ Brief is produced using 13-point Century
type and contains less than 12,000 words, including footnotes,
which is fewer than the 14,000 words permitted by rule for this
brief.
The undersigned Respondent in pro per relies on the word
count of the computer program (MS Word) used to prepare this
brief.
Dated: August 23, 2024 Respectfully submitted,
51
PROOF OF SERVICE
I am over the age of 18 and a party to the within action.
On August 23, 2024, I served the within document(s) described
as:
RESPONDENT’S BRIEF
52
SERVICE LIST
53