• Sheen’s Case Against Warner Brothers/CBS and Lorre
  • February 1, 2012
  • Law Firm: IP Law Click PC - Glendale Office
  • The Morals Clause could allow Warner Brothers/CBS to suspend Sheen’s contract if he committed a felony. That is essentially a question of fact, in that to what extent did Sheen’s conduct constitute felonious acts which under the clause would enable Warner Brothers/CBS to cancel the contract. However, the problem is that Warner continued to negotiate the contract and employ him despite Sheen’s past conducts and known tendencies.  This is analogous to radio personality Shock Jock Imus’ case with CBS.  In the lawsuit against him for his controversial remarks against Rutgers University women’s basketball team players, he prevailed because the studio was very well aware of Imus’ disparaging remarks before and kept on granting him extensions.

    If on the other hand, there is no Morals Clause and the deal between Warner Brothers and Sheen, is Pay or Play, then Sheen will argue that he has survived “banging seven gem-rocks” cannot be held against him.  In other words, you cannot tell Sheen what to do when he is not on air.  Indeed, Warner Brothers knew about Sheen’s behavior including stints in rehab and an arrest on charge of then-wife Brooke Mueller, but only acted after Sheen insulted Lorre, the studio’s top producer.

    However, Warner Brothers/CBS could argue that Sheen not CBS violated the contract based on Force Majeure Clause in that Sheen’s incapacitated condition and changes in his attributes rendered him unable to perform his essential duties.  Facts supporting this violation include Sheen’s attending rehab and showing up late to work.  Warner Brothers and CBS have claimed that this could forfeit Sheen’s rich deal and force him to reimburse CBS producers for lost revenues amounting to $250 million if the show is cancelled permanently.  This is premised on the notion that Sheen despite his willingness to show up on set, has become such high risk and has damaged so many relationships that conducting the show has become impossible.  But even then, Sheen could argue that CBS entered the contract with Sheen knowing about Sheen’s troubles and Sheen is actually seeking help by attending rehab.  The contract is not becoming impossible to perform.

    Article by Dorisa Shahmirzai, Esq. Founder of IP Law Click

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