Nova Law Review

Volume 43, Issue 2 2019 Article 5

Punishing Bad Actors: The Expansion of Morals Clauses in Hollywood Entertainment Contracts in the Wake of the #MeToo Movement

Jihad Sheikha∗

∗Nova Southeastern University Shepard Broad College of Law, [email protected]

Copyright c 2019 by the authors. Nova Law Review is produced by The Berkeley Electronic Press (bepress). https://nsuworks.nova.edu/nlr Sheikha: Punishing Bad Actors: The Expansion of Morals Clauses in Hollywoo

PUNISHING BAD ACTORS:THE EXPANSIONOFMORALS CLAUSES IN HOLLYWOOD ENTERTAINMENT CONTRACTSIN THE WAKEOFTHE #METOO MOVEMENT

JIHAD SHEIKHA*

I. INTRODUCTION...... 204 II. ABRIEF OVERVIEWOFMORALS CLAUSES ...... 206 A. Morals Clauses Defined...... 206 1. Negotiating Morality...... 206 2. Terminationand Defenses ...... 208 B. ABrief Historyofthe Morals Clause ...... 209 1. TheOriginofthe Morals Clause ...... 210 2. TheClauses Confront Communism...... 211 3. TheModernMoralsClause...... 214 III. THE #METOO MOVEMENT...... 214 IV.#METOO’S EFFECTONHOLLYWOOD’S TALENTAND FINANCES .. 218 A. Weinstein’sTermination...... 218 B. Spacey’s Termination...... 220 C. LouisC.K.’sTermination...... 221 D. Analysis...... 222 V. #METOO MAKES A CHANGE:HOW THE MOVEMENT IS CHANGING HOLLYWOOD DEAL-MAKING BY BROADENING THE LANGUAGEOF MORALS CLAUSES ...... 223 VI.THE NEW MORALS CLAUSES ARE HERETOSTAY ...... 225 A. Broad Morals Clauses AreNothing New...... 225 B. BroaderMoralsClauses Will Be Used as Originally Intended ...... 226 C. BroaderMoralsClauses Will Be Upheld in Court...... 227 D. BroaderMoralsClauses Make Sense...... 230 VII. CONCLUSION...... 231

*Jihad Sheikhaearnedhis bachelor’s degree in Political Sciencewith a minor in PsychologyatFlorida Atlantic University.Heiscurrently aJuris Doctor Candidate forMay 2020 at Nova SoutheasternUniversity, ShepardBroad College of Law. Jihadwould firstliketothank hismother, father,and threesistersfor theircontinuedsupport throughout hislaw school career.Hewouldalsoliketothank hisfriends,colleagues, andother peers whosediscussions helped sparkthisComment’stopic.Jihad is also grateful forthe time and energy spentbyhis fellowcolleaguesofNova LawReview,Volume43, in editing this Comment. Lastly,Jihad wouldliketoacknowledgethe prosecutors andstaff of theSexual Battery andChild AbuseUnitatthe BrowardCountyStateAttorney’s Office in helping representvictims of sexual assault andfor theircontinuedworkingivingavoicetothe voiceless andprotectingthose whocannotprotect themselves.

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I. INTRODUCTION

Nothingseems to sell astory more than agood scandal.1 Thesiren callofcelebrity gossip managestolurethe everyday JoeShmoe andJane Doeintoclicking thelatest TMZ articleorvideo on theirsocialmedia feed, pickingupacrumpled US Weekly at thedoctor’soffice, or forthe more open-minded, flipping throughthe NationalEnquirer to investigatethe latest appearance of BigFoot.2 “Our appetitefor celebrity gossipis...insatiable” andweparticularlycrave twothings: Fame and bad news.3 That is whyitis no surprise that thebombshell of #MeToo took theworld by storminlate 2017.4 The#MeToo movement generated storyafter storyofthe career- ending malfeasance committed by our most belovedcelebrities andpublic figures, in addition to reportsofthe steepfinancial consequences enduredby Hollywood’sstudios,productioncompanies, anddistributors.5 Soon, amere social mediahashtaginstilled fear into theheartsofprominent male celebrities once thought to be untouchable.6 Theupperechelon of Hollywood took noticeand scrambledfor ameans to distance themselves from toxic talent and terminate their existing contracts.7 However, absent breaching acontract illegally, many Hollywood companiesdid nothavethe legal means to end these agreements and, subsequently, lost millions of dollars.8 As asolutiontotheir woes, Hollywood is now consideringthe morals clause,aheavily-negotiatedprovision in atalentagreementthat allows forthe terminationofsaidagreement undercertain circumstances.9 Theconsideration of morals clausesinthe wake of the#MeToo movement is not asurprise.10 Thesecontractual provisions have become

1. DanaDovey, RumorHas It:The ScienceBehindWhy We Love Celebrity Gossipand TabloidMagazines,MED.DAILY (Nov.24, 2015, 9:00 AM), http://www.medicaldaily.com/rumor-has-it-science-behind-why-we-love-celebrity-gossip- and-tabloid-magazines-362710. 2. Seeid. 3. Id. 4. Seeid.;Regan Morris, Is #MeToo Changing Hollywood?,BBC: NEWS (Mar.3,2018),http://www.bbc.com/news/world-us-canada-43219531. 5. See TatianaSiegel, #MeToo Hits MovieDeals:Studios Race to Add Morality Clauses to Contracts,HOLLYWOOD REP.(Feb. 7, 2018, 6:50AM), http://www.hollywoodreporter.com/node/1082563. 6. See Morris, supra note 4; Kyle Smith, AMaleBacklashAgainst#MeToo Is Brewing,N.Y POST (Feb.3,2018,2:43PM),http://www.nypost.com/2018/02/03/a-male- backlash-against-metoo-is-brewing/. 7. See Siegel, supra note 5. 8. Seeid. 9. Id. 10. See StephenM.Gallagher,Note, Who’sReally Winning?: TheTension of Morals Clauses in Film andTelevision,16VA.SPORTS &ENT.L.J.88, 88 (2016) (discussing thestandardnatureofmoralsclauses in theentertainment industry).

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standard practice in advertising, motionpictures, and television agreements andare generallyupheld by thecourts.11 “Morals clausesgive[an]employer ...the right to terminateatalent [contract]”ifthe talent failstoconduct himselfaccordingtothe moralstandardsofsociety,thereby tarnishinghis ownreputationand thereputationofhis employer.12 Forexample,acontract could have amoralsclauseallowingfor thetermination of theagreementin theevent that thehired talent is convictedofadrug offense.13 Upon the talent’s conviction,the morals clause is triggeredand thetalent’semployer hasthe righttoterminate thecontract.14 In themidst of countless celebrityaccusations of sexualimpropriety, morals clausesseem to be an effectivetool Hollywood can usetocombat negativepublicity generatedbytoxictalentwho have lost theirstatusand, most importantly,their value.15 In light of therecentwaveofsexual assault allegationsthatrockedHollywood, studios andproduction companiesplanto usemoralsclauses more oftenand broadentheir language to accountfor possibleaccusations of sexualassault andviolencecommittedbytheir talent.16 By includinglanguagethatallowsfor theterminationofatalent agreement if allegationsofsexualmisconduct come to light,Hollywood studioscan effectivelymitigatepotential financiallosses associated with theseaccusations.17 However, some fear that broadermoralsclauses that are triggered upon mere accusations setabadprecedent forthe industry because they couldbeused unfairlyorevenbeabused by studios andproduction companies.18 This Commentwill addressthese concernsand others that ariseout of theuse of broaderand more expansive morals clauses.19 In addition to defining themoralsclauses andidentifying itscomponents, this Comment will explorethe historical evolutionofmoralsclauses from the1920s up to themodern era.20 This Comment will also provideuseful background

11. Id.;NoahB.Kressler, Note, Using theMoralsClauseinTalent Agreements:AHistorical, Legal andPractical Guide,29COLUM.J.L.&ARTS 235,235 (2005). 12. Gallagher, supra note10, at 88. 13. Kressler, supra note 11, at 245–46. 14. Id. 15. Seeid. at 244(discussing thevalue of morals clauses in thetelevisionand motionpicture industry);Gallagher, supra note 10,at90. 16. See Natalie Robehmed, TheMorality Clause:How #MeToo Is Changing Hollywood Dealmaking,FORBES (Mar.29, 2018,11:22 AM), http://www.forbes.com/sites/natalierobehmed/2018/03/29/the-morality-clause-how-metoo-is- changing-hollywood-dealmaking. 17. Id. 18. Id. 19. See discussion infra Part II–IV. 20. See discussion infra Part II.

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informationofthe #MeToo movement andits effectsonHollywood by providingin-depthcasestudies on theHarveyWeinstein,Kevin Spacey,and LouisC.K.allegations that ledtotheir pariah status in theentertainment industry andcosttheir employersmillionsofdollars.21 Ultimately, this Comment’s propositionisthatweshouldhavelittleconcernoverbroader morals clauses because they areinessence very similartopastmorals clauses that were upheld by thecourts, will likely notbeabused,and will facilitate thenecessary shiftinculturalnorms in Hollywood by shedding light on theepidemicofworkplace sexualharassment and assault.22

II. ABRIEF OVERVIEWOFMORALS CLAUSES

A. Morals Clauses Defined

In contract law, morals clauses arecontractual provisions that give theemployerthe righttoterminate theagreementinthe eventthatthe employee behavesinaway that negativelyimpactshis or herown public imageand therebydamages thereputationofthe employer by association.23 Morals clausesare sought after by many contractingcompanies in an effort to protectthemselves from theimmoral andreckless conduct of the employee—commonlycalledthe talent—and to ensure that thevalue of the film or television programisnot compromised.24 Additionally,morals clauses areused“to quicklydisconnect thecelebrity/productassociationin theconsumer’s mind.”25 Thereare twoelementsofamorals clause:The immoral behavior deemed to triggerthe morals clause andthe employer’s options afterthe clause hasbeen triggered.26 Thesubjectivenatureofmorals is apoint of frequent contention in entertainmentcontract negotiations and consequently leadstalenttoseek legalrecoursetodenybeing bound to its language.27

1. Negotiating Morality

Morals clausesincontractscover conductthatdisregardspublic morals anddecency,shocksorinsults thecommunity,orcasts anegative

21. See discussion infra Part III–V. 22. See discussion infra Part VI. 23. Gallagher, supra note10, at 90. 24. Id.; see also Kressler, supra note 11, at 244. 25. Kressler, supra note 11, at 241. 26. 14 MICHAEL P. ZWEIG,BUSINESSAND COMMERCIAL LITIGATION IN FEDERAL COURTS 768 (4th ed.2016). 27. Gallagher, supra note10, at 90–91(discussing how thesubjectivenature of morals clauses leadstolitigation).

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lightonthe talent themselves, “the financier, theproducer,the employer,or thedistributor.”28 However, due to theinherentsubjectivityofthe term morality,itcan be quite difficulttopinpointwhat public morals or decency actuallyrefersto.29 This ambiguity liesinthe fact that thenatureofmorality is rooted in community customsthatvaryfromcommunity to community andfromgenerationtogeneration.30 In fact,yesterday’ssocietaltaboos may be socially acceptedtoday.31 Forexample,inthe past,anemployee’s homosexuality mighthavebeen thetriggering offensethatterminateda contract,while,inthe present, an employee making homophobicstatements mightbethe trigger.32 Thus,there is no uniformly accepted legaldefinition of amoral standard norcan theretruly be one single accepteddefinitiondue to theconstant evolutionofmoral standards in society.33 Naturally, Hollywood studiostypically adopt an “I know it when Isee it” approach when evaluating their employees conduct.34 In an attempttodealwiththis

28. 2THOMAS D. SELZETAL., ENTERTAINMENT LAW 3D:LEGAL CONCEPTS AND BUSINESS PRACTICES §9:107,Westlaw (database updatedDec. 2018). 29. See SchuylerMoore, Morality ClausesinHollywood: WhatYou Need to Know,FORBES (Mar.12, 2018,5:27PM), http://www.forbes.com/sites/schuylermoore/2018/03/12/morality-clauses-in-hollywood/. [I]t is rather difficult to discernadefinitionfor morality or moralbehavior applicableinall circumstances. This is especially true when oneconsiders the ... sensitivity of making such an evaluation.Atthe very least, moralbehaviorrefersto behavior that comports to an existing code of conductput forwardbyasociety. Fernando M. Pinguelo &Timothy D. Cedrone, Morals?Who Cares AboutMorals? An ExaminationofMoralsClauses in Talent Contractsand WhatTalentNeeds to Know!,19 SETON HALL J. SPORTS &ENT.L.347,352 (2009) (emphasisadded). 30. Pinguelo &Cedrone, supra note 29, at 352 (discussinghow moral standardschangeovertime); seealso Michael Moore, MoralReality,1982WIS.L.REV.1061, 1096(1982)(discussing how societal values change andwill continue to change). “History teaches us that systemsofvaluesevolve, andthere is no reasontothink that theprocess is at an end.”Moore, supra. 31. Gallagher, supra note10, at 91.“As everyone knows, moralstandards seem to ebband flow with thetimes.Inmanycases what wasthought to be improper in 1951 is deemed perfectly acceptablein2016.” Id. 32. Moore, supra note 29. 33. Gallagher, supra note10, at 91; seealso Moore, supra note 30,at1096; Pinguelo &Cedrone, supra note 29, at 352(discussing theinherentsubjectivity of morality). “The skeptical conclusion is that our presentsystemofvaluescannotberegardedasright or objective because we know it will change in thefuture.”Moore, supra note30, at 1096. 34. See Jacobellis v. Ohio,378 U.S. 184, 197(1964) (Stewart,J., concurring). Ihavereached theconclusion,which Ithink is confirmedatleast by negative implicationinthe Court’sdecisions since Roth and Alberts,thatunder the Firstand Fourteenth Amendments criminal laws in this area areconstitutionally limitedto hard-core pornography.Ishallnot todayattemptfurther to define the kindsof material Iunderstandtobeembracedwithinthatshorthand description;and perhaps Icould neversucceed in intelligibly doing so.But IknowitwhenIseeit, andthe motionpicture involvedinthiscaseisnot that. Id.

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moralconundrum, atest has been establishedtoevaluatewhether an employee’sconductmeetsthe requirementofbeing immoral.35 “The test is ‘not morality in theabstract, but whethertakingthe nature of theplaintiff’s employmentintoaccount theactscomplainedofrenderedthe plaintiffunfit to performthe dutieswhich he hadundertaken.’”36 Thus,anemployee’s actions showingdishonestyand untrustworthiness justifiesthe employee’s dismissalbecause theemployer“cannolonger place faithand trustinthe employee ...or, as aresultofthe employee’s behavior,the publicwould be disposed to curtailbusinessrelations with theemployer.”37 Therefore, the triggering offensethatgives theemployerthe righttoterminate thecontract is usually conductthatislikelytodamagethe employer’s reputationand potentially hurtthe companyfinancially.38 During thenegotiation process, talent typically seek to have morals clauses narrowly tailored to be triggered only in the event of specific reprehensibleconduct,suchasconvictionofafelony,makingitmore difficulttotriggerthe moralsclause.39 On theother hand, theemployer seekstodraft broaderclauses that allows forthe terminationofthe contract for various offenses such as accusations, arrests, and public indecency.40 Broaderlanguagegives theemployergreaterdiscretionoverwhenthe morals clause is invoked and thus when the contract is terminated.41

2. Terminationand Defenses

Invoking amoralsclauseinanentertainment contract is a complex business decision that must consider whetherthe employee’s actions are sufficientlylikelytodamagethe employer-employeerelationshipsothata continuedrelationshipwouldcause harm to theemployerortheir investment.42 Employerstypically consider the severity of theemployee’s conductand theoverall investment in theproject.43 However, “[a] morals clause [can]alsobe[triggeredby] theperceptionofwrongdoing,ratherthan

35. 19 SAMUEL WILLISTON,ATREATISEONTHE LAW OF CONTRACTS 632–33, (4th ed.2016) (quoting Child v. Boyd &Corey Boot &Shoe Mfg. Co., 56 N.E. 608, 609 (Mass.1900)). 36. Id. 37. Id. at 633. 38. See Gallagher, supra note10, at 90,104. 39. ZWEIG, supra note 26,at768. 40. Id. 41. Id. 42. Id. 43. Id.

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actual” evidence of wrongdoing.44 Past misconduct that becomespublic can also triggeraclause.45 Whileitcan be argued that morals clausesgivethe contractingcompany immensepower over theagreement, thetalentisnot withoutlegal recourse.46 “[L]itigationoften comesinthe form of asuitfor wrongfultermination or in abreachofanemploymentcontract claim because thetalentbelievesthathis or herbehaviordid not triggerthe clause due to either ambiguity in theclauseitselforalack of requirednotice.”47

B. ABrief Historyofthe Morals Clause

“[M]oralsclauses have [appeared]in...contractsfor nearly a century.”48 Introduced in theearly 1920s, morals clauseshavebeen prevalentinentertainment contractsand have been “generally upheld by the courts.”49 However, thetypeofimmoral conduct these clauses targeted have changedoverthe years.50 Initially,morals clauseswereusedtoaid in the pre-WorldWar II era crusadeagainst celebritysin.51 Then,studios attemptedtostamp out thealleged Communist invasion in Hollywood during theMcCarthyera by invoking morals clauses.52 Finally, today, morals clauses areprimarily used to uphold theethical standardsthatcontracting companiesare expected to liveuptobythe public.53 Today, thereisashift in applicationofmoralsclauses wherestudios andproduction companies now seek to target Hollywood’sprevalent problemoframpant sexualassault accusations againstprominent male celebrities.54 Nevertheless, throughout thecourseofhistory,there hasabeen aconsistenttheme regardingthe additionofmoralsclauses: Protecting thecompany’simage in thepublic eye.55

44. Lauren Rosenbaum,Comment, 140Characters or Less:ALook at Morals ClausesinAthlete Endorsement Agreements,11DEPAUL J. SPORTS L. &CONTEMP. PROBS.129,133 (2015). 45. Id. 46. Gallagher, supra note10, at 90–91. 47. Id. 48. Robehmed, supra note 16. 49. Gallagher, supra note10, at 88;Robehmed, supra note 16. 50. CarolineEpstein,Note, Morals Clauses: Past,Present,and Future,5 N.Y.U. J. INTELL.PROP.&ENT.L.72, 78 (2015) (discussing theevolutionofmoralsclauses). 51. Gallagher, supra note10, at 92. 52. Epstein, supra note 50,at76. 53. Gallagher, supra note10, at 92. 54. See Robehmed, supra note16. 55. Epstein, supra note50, at 75.“Businesses spendconsiderablesumsof moneytocultivatethe ideal image, andnegativeassociations canwreak havocupon their efforts.” Id.

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1. TheOriginofthe MoralsClause

In theearly 1920s,Hollywood wasfrequentlyatodds with the religious sentimentofthe rest of theUnitedStates, whichviewedHollywood as acesspoolofcelebrity sin.56 Many theorizedthatthisperceptionled to a dipinmovie ticketsales whichstagnated themotionpicture industry.57 This slumpinsales wasfurther exacerbated by the“Fatty” Arbuckleincident— Hollywood’sfirst celebrityscandal.58 In 1921, belovedcomedianRoscoe “Fatty”Arbucklesignedamulti-year,“[$3,000,000] contractwith Paramount Pictures.”59 That year,the popularcomedianhostedaLaborDay partyinhis SanFrancisco hotelsuite whereactress Virginia Rappewas later found to be severelyinjured andsubsequently died of herinjuries.60 After Rappe’s death, Arbucklewas chargedwithher murder andaccused of rape.61 Arbucklewas ultimatelyacquitted of this chargebut couldnot free himself fromthe shacklesofthe negativepublic perception that lingered.62 Learning at theexpenseofParamount Pictures, UniversalFilm Companyexecutives enactedanewcompany policystating “thatmorals clauseswould be added to allexistingand newactor agreements.”63 These newclauses permittedthe contractingcompany to discontinue talents’ salaries if they “forfeit[ed] the respect of thepublic.”64 Theprovision stated:

Theactor—actress—agreestoconduct himself— herself—with dueregardtopublic conventions andmoralsand agrees that he—she—willnot do or commitanythingtending to degradehim—her—insociety or bringhim—her—intopublic hatred,contempt, scorn, or ridicule,ortending to shock,insultor

56. 2THOMAS D. SELZETAL., ENTERTAINMENT LAW 3D:LEGAL CONCEPTS AND BUSINESS PRACTICES §9:106,Westlaw (database updatedDec. 2018). 57. Id. 58. See Jude Sheerin,Fatty Arbuckleand Hollywood’s First Scandal,BBC: NEWS (Sept. 4, 2011), http://www.bbc.com/news/magazine-14640719. “Los Angeles-based film historianCariBeauchanp says:‘This wasthe firstscandalinHollywood with box office implications.’” Id. 59. Epstein, supra note 50,at76. 60. Sheerin, supra note 58.“Thestar, thought to have weighedabout [two hundred andsixty pounds]...wasportrayed as afat brutewho hadpinneddownhis prey, rupturingher bladder.” Id. 61. Id. 62. TomMoran, Review —Books: SortingThrough aSordidTale,WALL STREET J. (Oct.5,2013),atC14. Twotrialsendedwith hung juries, andthe thirdjurynot onlyacquittedArbuckle, butwentout of its waytoissueastatement declaringhim “entirely innocentand free from allblame.” Id.;Sheerin, supra note58. 63. Gallagher, supra note10, at 93. 64. Morality Clause forFilms: UniversalWill Cancel EngagementsofActors WhoForfeit Respect.,N.Y. TIMES,Sept. 22,1921, at 8.

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offend thecommunity or outrage public morals or decency,or tendingtothe prejudiceofthe UniversalFilmand Manufacturing Companyorthe motion pictureindustry.65

UniversalStudios sought to usemoralsclauses to achievethree specific goalstomitigatethe publicadmonishment of Hollywood.66 First, thenew provisions were thought to remedy theperceived morally decrepit celebrity lifestylebyactingasarestraining influence on actors and actresses.67 Second, theclauses were intended to reassure thepublicthat theirscreen idolswereexemplary moral figures.68 Third,the moralsclauses were draftedtoprotect UniversalStudios’investmentworth hundredsof thousands of dollarsatthe time.69 Themoralsclauses of todaystill mirror thelanguageusedbyUniversal Studios in 1921 andare used in essentially thesamemanner.70

2. TheClauses Confront Communism

Beginning in late 1947 to the1950s,moralsclausesexpanded to brandnew territory—thepolitical arena.71 This eramarkedthe evolutionof themoralsclausewhere they were employed as toolstostiflepolitical ideology andaffiliation, rather than to target actual immoralconduct.72 During this eraofUnitedStateshistory,Americans were deeply concerned with thespread of Communistideas to theUnitedStates.73 In responseto this RedScare,the HouseCommitteeonUn-American Activities (“HUAC”) wascreated andtasked withinvestigatingprivate citizens,employees, and organizations forpotential tiestoCommunism.74 In additiontotargeting government officialsand labor unions,HUAC eventually turned itssuspicion to Hollywood.75 HUAC served forty-threesubpoenasupon studiodirectors,

65. Id. 66. Seeid. 67. Id. 68. Seeid. Theexact quotereads: “[I]twill reassurethe public,who forthe moment maybeinclinedtofear ...their screen idolshavefeet of clay ....” Morality Clause forFilms: UniversalWill Cancel EngagementsofActorsWho ForfeitRespect., supra note 64. 69. Id. 70. Gallagher, supra note10, at 97. 71. SELZETAL., supra note56, at §9:106. 72. Pinguelo &Cedrone, supra note29, at 355. 73. SeeHouseUn-AmericanActivitiesCommittee,ELEANOR ROOSEVELT PAPERS PROJECT,http://www2.gwu.edu/~erpapers/teachinger/glossary/huac.cfm(last visited May1,2019). 74. Kressler, supra note11, at 238; HouseUn-AmericanActivitiesCommittee, supra note 73. 75. Kressler, supra note 11, at 238.

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writers, andactorsseeking to uncover an allegedCommunist infiltration of Hollywood.76 Tenofthese individuals were deemed unfriendly by the HUAC fortheir failure to testifyabouttheir political affiliation.77 Theseten latercametobeknownasthe HollywoodTen.78 This notorietycaused three of theten writers, Lester Cole,RingLardner, andRobert Scott, to be terminated from employmentbytheir respective studiosdue to theirmorals clauses beingtriggered.79 TheMcCarthyera marked thefirst time morals clauses hadbeen litigated in courtwhich ultimatelyensured that morals clauseswouldgain enoughjudicial acceptancetoendure into themodern age.80 In Loew’s, Inc. v. Cole,81 Lester Cole broughtsuitagainst hisformeremployer, Loew’s (underthe trade-name MGM),for thetermination of hiscontract afterhe refused to testify in frontofthe HUAC.82 Cole broughtanactionagainst MGMseekingadeclaratoryjudgementthatMGM didnot have theright to terminate the contract.83 MGMcontends that Cole’s failuretotestify to the HUAC brought himunderpublic disreputeand invokedhis morals clause.84

76. Pinguelo &Cedrone, supra note29, at 355. 77. Id.;Kressler, supra note11, at 238. 78. Kressler, supra note 11, at 238. 79. Id. 80. Gallagher, supra note10, at 94–96; seealso Pinguelo &Cedrone, supra note29, at 356. 81. 185 F.2d 641(9thCir. 1950). 82. Id. at 645. Thereisnoroom fordoubt as to justwhatColedid before the Committee. Atranscriptofhis testimonyisapart of the pre-trialorder.This discloses thatthe Committee sought to elicit fromhim answerstotwo questions: “Are you amemberofthe Screen Writers’Guild?” and“Areyou noworhaveyou ever been amemberofthe Communist Party?”All that need be said is that althoughColestatedhewould be very happy to answer thesequestions, the Committee didnot succeed in getting an answer from him to either one. Id. at 647. 83. Id. at 645. Cole’s employment contract containeda[moralsclausein] paragraph5 whichread: “The employee agrees to conducthimself with dueregardtopublic conventions andmorals, andagrees that he will notdoorcommitany actorthing that will tend to degradehim in societyorbring himintopublic hatred,contempt, scornorridicule, or that will tend to shock, insult or offend thecommunity or ridicule public morals or decency, or prejudice theproducerorthe motionpicture, theatricalorradio industry in general.” Id. at 645. 84. SeeCole,185 F.2d at 645. On December 2, ...[Cole]was sent anoticeofsuspensionreading as follows: “DearMr. Cole:Atarecent hearing of acommittee of the House of Representatives,you refusedtoanswercertain questions puttoyou by such committee. By your failuretoanswerthese questions,and by yourstatementsand conductbeforethe committeeand otherwiseinconnectionwith thehearings, you have shockedand offendedthe community, broughtyourselfinto public scornand contempt,substantially lessenedyourvalue to us as an employee,and prejudiced us

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Cole arguedthathis conductdid not invoke themoralsclausebecause his failuretotestify was political conductratherthanimmoral conduct.85 Nonetheless, thecourt found that failuretotestify to acongressional committeewas sufficientlyimmoral to invoke themoralsclausesince Cole didnot conducthimself with due regard[for] publicconventions.86 Thus,in upholding theclausewithinthe contract,the courtlegitimized theexistence of morals clauses andacknowledged theirvalue in curbingimmoral conduct.87 Similarly, in RKORadioPictures,Inc.v.Jarrico,88 motionpicture screenwriterPaulJarrico,refused to testifybeforethe HUAC about his allegedCommunist ties.89 RKObrought adeclaratoryjudgementaction, seekingadeterminationthatthe companyhad no obligationtogiveJarrico screencreditbased on theinvocationofthe morals clause in theircontract.90 RKOalleged that themoralsclausewas triggeredbecause Jarricohad “brought himself into public disrepute” by invoking the Fifth Amendment duringthe HUAC proceedings.91 Thecourt held that Jarricoviolatedthe morals clause andthus he wasnot entitled to screen credit because hisrefusal to testify in front of the HUAC qualified as immoral conduct.92 Thus,the California SecondDistrictCourtofAppeal upheldthe clause in thecontract and further legitimized morals clauses in the Hollywood entertainment industry.93

as your employer andthe motionpicture industry in general. By so doingyou have violated yourobligationsunder your contract of employment with us andyour legal obligations to us as ouremployee.” Id. 85. Id. at 647. 86. Id. at 648–49. 87. Seeid. 88. 274 P.2d 928(Cal. 2d Dist.Ct. App. 1954). 89. Id. at 929. 90. Seeid. Thewrittencontractbetween appellantand respondentrecited in part that an essentialconsideration of the contract wasthe popularity andgood reputationofappellant with the public. Further, appellant agreed that during the production anddistributionofthe motionpicture he wouldconduct himself with due regard to publicconventionsand morals andwould notdoanythingwhich wouldtendtodegrade himorbring him into public disgrace,obloquy,ill will or ridicule. Id. at 928–29. 91. SELZETAL., supra note 56, at §9:106; seealsoRKO RadioPictures, Inc., 274 P.2d at 929. 92. SeeRKO RadioPictures, Inc.,274 P.2d at 929–30. 93. Seeid.

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Consistent with theholdings of Loew’s and RKO,the NinthCircuit also upheld morals clauses in similarentertainment contracts.94 Even after Americans’ fear of aloomingcommunist invasion dwindled,these clauses continuedtobeused againstostracizedcelebrities duetoincreased judicial acceptance.95

3. TheModern Morals Clause

Morals clauses,oncecreated to improvethe lowpublic perception of Hollywood andout concealedcommunists, arenow standard provisions in motionpicture andtelevisiontalentagreements thanks to thejudicial legitimacy afforded to them in the1950s.96 This newfound judicial acceptancehelpedfashion morals clausestobeefficient toolsinthe modern age; toolsused to terminateanagreementafter public perceptionoftalent took aturnfor theworst.97 However, thechangingmoral landscape hasnot onlychangedthe waymoralsclauses areusedbut also how frequently they areused.98 Today, these typesofclauses arewidelyupheld butnow focuson battling deviations frommodern ethicalstandards.99 By examining this morphology, this Commentwilldiscuss how themodern useofmorals clauses will be used to fightanemergingethical dilemma—rampantsexual misconductinHollywood.100 In ordertounderstandhow morals clauseswill be used in thefuture, it is prudent to have background informationonthe catalystfor this change,the #MeToo movement—its inception, itsinfluence, andits impending changetoHollywood entertainment contracts.101

III. THE #METOO MOVEMENT

Hollywood hashad itsfairshare of celebrityscandals,102 but it has neverexperienced anything like the#MeToomovement.103 “The phrase and hashtag[#MeToo] hasbeenone of themostviral andpowerful[trends]in

94. Seeid. at 930; Twentieth Century-Fox FilmCorp. v. Lardner, 216 F.2d 844,847–48(9thCir. 1954); Loew’s,Inc.v.Cole, 185F.2d641,658 (9th Cir. 1950). 95. See Gallagher, supra note10, at 94,96. 96. Seeid. at 94–96; Kressler, supra note11, at 250. 97. Gallagher, supra note10, at 98–99. 98. See Robehmed, supra note16. 99. Gallagher, supra note10, at 96. 100. See Robehmed, supra note16. 101. See Gallagher, supra note10, at 98;Robehmed, supra note 16. 102. LauraMartisiute, 5Vintage Hollywood Scandals That First Showed Tinseltown’s Ugly Side,ALL THAT’S INTERESTING (Aug.8,2018), http://www.allthatsinteresting.com/vintage-hollywood-scandals. 103. See Morris, supra note 4.

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social mediahistory.”104 Themovement, startedbyactivistTaranaBurke nearly adecadeago,was catapulted fromasmallgrassrootsorganization into an internationalpowerhouse in amatterofmonths.105 Sinceits inception, themovementhas sought to advocatefor thesurvivors of sexual violence in lowincomecommunitiesand promoteamore substantive discussiononsexualviolenceinthe workplace.106 In less than sixmonths, Hollywood’srampant sexual harassmentepidemicwas thrust into the nationaland internationaldiscourse by victims, theirallies, andsupporters.107 Theunprecedented maelstromthatisthe #MeToo movement began when actress Ashley Judd cameforward about herexperiencewith Hollywood producer andfilmmogul Harvey Weinstein in whichshe divulged that Weinsteinmadesexualadvancestowards herinexchangefor a boostinher career.108 SinceJudd’srevelation, eighty-seven womenhave come forwardaccusing Weinsteinofsexualimpropriety,including rape,over aspanoftwo decades.109 These allegations ledtoWeinstein’s terminationas chiefexecutiveofficer (“CEO”)ofthe WeinsteinCompany,110 theWeinstein

104. JR Thorpe, This Is HowMany PeopleHavePosted Me Too Since October, AccordingtoNew Data,BUSTLE (Dec. 1, 2017),http://www.bustle.com/p/this-is- how-many-people-have-posted-me-too-since-october-according-to-new-data-6753697. 105. JocelynFrye, From PoliticstoPolicy: Turningthe Corner on Sexual Harassment,CTR.AM.PROGRESS (Jan.31, 2018, 2:59 PM), http://www.americanprogress.org/issues/women/news/2018/01/31/445669/politics-policy- turning-corner-sexual-harassment/; Alix Langone, #MeToo andTime’sUpFounders Explain theDifferenceBetween the2Movements —and HowThey’re Alike,TIME:LIVING (Mar.22, 2018, 5:21 PM), http://www.time.com/5189945/whats-the-difference-between-the-metoo-and- times-up-movements/; Vision, ME TOO,http://www.metoomvmt.org/about/#history(last visitedMay 1, 2019). #MeToowas startedbyactivistTaranaBurke aftershe hada conversationwith a[thirteen]-year-old girl whoopeneduptoher aboutthe sexual abuseshe wasexperiencingatthehands of hermother’s boyfriend, accordingtothe NewYorkTimes.Adecadelater,in2006, Burkefoundedthe non-profitJustBe, Inc., an organizationthatsupportsvictims of sexual misconduct,withafocuson young girlsofcolor. Langone, supra. 106. SeeVision, supra note105. 107. Seeid. 108. See StephanieZacharek et al., TheSilenceBreakers,TIME,Dec. 18, 2017, at 34, 36. 109. Sara M. Moniuszko&Cara Kelly, Harvey WeinsteinScandal:A Complete Listofthe 87 Accusers,USA TODAY:LIFE (June 1, 2018,4:51PM), http://www.usatoday.com/story/life/people/2017/10/27/weinstein-scandal-complete-list- accusers/804663001/. 110. Thuy Ong, TheWeinstein Company Filesfor Bankruptcy andEnds ProhibitiveNDAs,VERGE (Mar.20, 2018,10:50 AM), http://www.theverge.com/2018/3/20/17142570/weinstein-company-bankruptcy-protection- nda.

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Company’ssubsequent bankruptcy,111 andthe filing of formal charges againstWeinstein.112 In June 2018, Weinsteinpleaded not guilty to two countsofrapeand one countoffirst degree criminal sexact in theSupreme CourtofNew York.113 The#MeToo movement trulybecameaninternational phenomenon when,inthe aftermathofthe Weinsteinscandal, actress Alyssa Milano encouraged herFacebook andTwitterfollowers to sharetheir experiencesby replying me too to herpost.114 “The hashtagwas [retweeted]nearlyamillion times in [forty-eight] hours....”115 On Facebook,there were approximately twelve millionposts andcommentsabout #MeToo in less than twenty-four hours.116 Internationally,morethaneighty-fivecountries registered tweets exceeding one thousand, with thehashtagtotalingapproximately 1.7 million tweetsworld-wide.117 Butthe movement didnot stop with Harvey Weinstein.118 Sincethe hashtagwentviral, more than eighty celebritiesand otherpublicfigures havebeen accusedofsexualmisconduct, harassment, or assault,119 including KevinSpacey,120 LouisC.K.,121 Bill O’Reilly,122 Bill

111. Jonathan Randles, WeinsteinCo. Filesfor Bankruptcy as Part of Deal with LanternCapital,WALL ST.J.(Mar. 20,2018, 12:35 AM), http://www.wsj.com/articles/weinstein-co-to-file-for-bankruptcy-as-part-of-deal-with-lantern- capital-1521513365. 112. Emanuella Grinberg &Elizabeth Joseph, Harvey WeinsteinPleads Not Guilty to Rape ChargesinCourt,CNN (June 5, 2018,10:55 AM), http://www.cnn.com/2018/06/05/us/harvey-weinstein-arraignment/index.html. 113. Id. 114. SintiaRadu, How#MeTooHas Awoken Women Aroundthe World,U.S. NEWS &WORLD REP.(Oct.25, 2017,3:39PM),http://www.usnews.com/news/best- countries/articles/2017-10-25/how-metoo-has-awoken-women-around-the-world;Alyssa Milano (@Alyssa_Milano),TWITTER (Oct.15, 2017,1:21PM), http://www.twitter.com/alyssa_milano/status/919659438700670976.“If you’ve been sexually harassedorassaultedwrite ‘metoo’asareply to this tweet.” @Alyssa_Milano, supra. 115. More Than 12M Me Too FacebookPosts,Comments, Reactionsin24 Hours,CBS NEWS (Oct.17, 2017, 6:26 PM), http://www.cbsnews.com/news/metoo-more- than-12-million-facebook-posts-comments-reactions-24-hours/. 116. Id. 117. Radu, supra note 114. 118. Samantha Cooneyetal., Here AreAll thePublic Figures Who’ve Been Accused of Sexual MisconductAfterHarveyWeinstein,TIME (Oct.4,2018, 12:01PM), http://www.time.com/5015204/harvey-weinstein-scandal/. 119. Id. 120. Adam B. Vary, ActorAnthony Rapp:KevinSpacey Made aSexual AdvanceTowardMeWhenIWas14,BUZZFEED NEWS (Oct.30, 2017,12:37 AM), http://www.buzzfeednews.com/article/adambvary/anthony-rapp-kevin-spacey-made-sexual- advance-when-i-was-14. TMZwas thefirst to break thestory of this accusation. Alanna Vagianos, KevinSpacey Accused of Sexual AssaultBy3More Men,HUFFPOST:ENT.(July 3, 2018, 5:21 PM), http://www.huffingtonpost.com/entry/kevin-spacey-accused-sexual-assault- 3-more-men_us_5b3bd9fae4b07b827cbbb2c8.

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Cosby,123 andMorganFreeman.124 Themovement, in fact,gainedsomuch attentionthatitevenexpanded outofHollywood andintopolitics,125 academia,126 andother industries.127 Duetothe all-encompassing scope of themovement, it is not surprising that #MeToo hashad an effect on

121. Melena Ryziketal., DetailingLewdActs, 5Women Accuse aComic of Misconduct,N.Y.TIMES,Nov.10, 2017,atA1. 122. WilliamCummings, Bill O’ReillyIsMadatGod forSexual Harassment Scandal,USA TODAY (Oct.24, 2017, 5:39PM), http://www.usatoday.com/story/money/business/2017/10/24/bill-oreilly-mad-god-sexual- harassment-report/795331001/. 123. CarlyMallenbaum et al., ACompleteListofthe 60 Bill CosbyAccusers and TheirReactions to theGuilty Verdict,USA TODAY:LIFE (Apr.27, 2018,4:32PM), http://www.usatoday.com/story/life/people/2018/04/27/bill-cosby-full-list- accusers/555144002/. 124. An Phung &Chloe Melas, WomenAccuse Morgan Freemanof InappropriateBehavior, Harassment,CNN: ENT.(May28, 2018,11:56 PM), http://www.cnn.com/2018/05/24/entertainment/morgan-freeman-accusations/index.html. 125. Dan Corey, Here’s aListofPolitical Figures Accused of Sexual Misconduct,NBC NEWS (Dec. 16, 2017,5:08PM), http://www.nbcnews.com/storyline/sexual-misconduct/here-s-list-political-figures-accused- sexual-misconduct-n827821. In recent months alone, at least[twenty-nine]powerfulmen in entertainment, business, andthe news mediahavebeen publiclycondemned for their allegedsexualmisconduct andmanyhavelosttheir jobs as aresult. The backlash andnationalconversationhavespurredachorus of voicesjoining the #MeToomovement. That focushas lately turnedtonationalpolitics.The allegations, reactions,and consequences span awide range. Al Frankenresigned as aU.S.senator forMinnesota,while AlabamaSenate candidate RoyMoore continued to campaign, even garnering thesupport fromPresident DonaldTrump, himself the target of at least[sixteen]sexualmisconduct allegations. Id. 126. See PeterAldhous et al., He Became aCelebrity forPutting Science Before God. NowLawrence KraussFaces Allegations of Sexual Misconduct,BUZZFEED NEWS (Feb.22, 2018, 11:33 AM), http://www.buzzfeednews.com/peteraldhous/lawrence- krauss-sexual-harassment-allegations (discussing accusations againstLawrenceKrauss, theoretical physicistand cosmologist). 127. See TomGjelten, Amid #MeToo,EvangelicalsGrapple with Misconduct in TheirOwn Churches,NPR: NATIONAL (Jan.24, 2018,11:42 AM), http://www.npr.org/2018/01/24/580193284/amid-metoo-evangelicals-grapple-with- misconduct-in-churchtoo(discussing #MeToo’seffect on thechurch);TaraMurtha, Farmhands,Maids andDomestic WorkersSay #MeToo,WASH.POST,June 10,2018, at B6 (discussing#MeToo’seffect on domestic workers);Davia Temin, Howthe Reputation Riskof #MeToo Is ForcingBusinesses to ReevaluateTheir CorporateCulture,FORBES (May 14, 2018, 12:56 PM),http://www.forbes.com/sites/daviatemin/2018/05/14/how-the-reputation- risk-of-metoo-is-forcing-businesses-to-re-evaluate-their-corporate-culture/(discussing #MeToo’seffect on thecorporaterealm);SamanthaWood, 8DaysLater, #MeToo Movement Expands Well Beyond EntertainmentIndustry,PRNEWS (Oct.23, 2017), http://www.prnewsonline.com/8-days-later-metoo-movement-expands-well-beyond- entertainment-industry/ (discussing #MeToo’seffectonother industries).

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Hollywood’stalentand finances.128 Sincethe inception of morals clauses, Hollywood studiosand production companieshavealwayspaidclose attentiontohow thepublicperceives thecelebrities they contract with and, in turn,their ownreputation.129 Theshift in norms pertaining to reporting sexualharassment andassault have put Hollywood film andtelevision companies in adifficultsituation as many of thecelebrities they contracted with have become toxic.130 This Comment will addressthisissue and explainhow the#MeToomovementhas affected Hollywood film and television companiesand theramificationithas hadfor thecelebrities accused of sexualimpropriety.131

IV.#METOO’S EFFECTONHOLLYWOOD’S TALENTAND FINANCES

Theaccusations of sexualassault againstpopularcelebrities have hit Hollywood studiosright whereithurts—their pockets.132 In thewakeofthe #MeToo movement,several celebritieshavehad theircareers endedorhave hadtheir future projectsterminated.133 This sectionwilladdressthe effectof the#MeToomovementonHollywood andtalenttobetterunderstandwhy Hollywood studiosare lookingtoexpand theuse of morals clauses, anddraft them in away that allows fortermination of thecontractinlight of serious accusations of sexualmisconductorassault,instead of just chargesor convictions of these offenses.134 Case studies on theHarveyWeinstein, KevinSpacey,and LouisC.K.accusations will be used to illustrate this expansionofthe morals clause.135 As this Comment addresses, some of thesecelebrities didnot haveamoralsclauseinsertedintotheir talent agreements—an issueHollywood now planstoremedy.136

A. Weinstein’sTermination

In theincidentthatcatapultedthe #MeToo movement,the Weinstein case showsjusthow much aHollywood companycan lose in theface of

128. Siegel, supra note 5; Wood, supra note 127. 129. See Epstein, supra note50, at 75–76. 130. See Siegel, supra note 5. 131. Seeid. 132. Seeid. 133. Id. 134. Robehmed, supra note 16. 135. See Ryziketal., supra note121;Seigel, supra note 5. 136.Siegel, supra note 5; see also BryanSullivan, KevinSpacey andHarvey WeinsteinEmployment AgreementsSay aLot About Hollywood,FORBES (Nov.15, 2017,2:39 PM),http://www.forbes.com/sites/legalentertainment/2017/11/15/kevin-spacey-and-harvey- weinstein-employment-agreements-say-a-lot-about-hollywood/.

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sexualharassmentallegations made against an employee.137 Weinsteinwas terminated as chairman of theWeinstein Companyafter more than eight womenaccused himofsexualmisconduct, includingrape.138 Thefilm producer hadaloose morals clause in hiscontract with theWeinstein Companythatcouldonlyhavebeen triggeredifhefailedtopay finesand anycosts incurred by thecompany due to hisbehavior.139 This behavior allegedlyincludedsexualharassmentand othermisconduct, giving thefilm producer acontractualloopholetoavoid terminationofthe contract if he was accused.140 However, Weinsteinwas stillabletobeterminatedbythe companywho forced himout in late 2017.141 Following Weinstein’s termination, thecompany plannedtoundergoaninternalinvestigation of the allegations whichcouldcostthe companyapproximately twenty millionto fortymilliondollars.142 Additionally,New York Attorney GeneralEric Schneidermanfiled chargesagainst Harvey Weinstein andBob Weinstein, hisbrother andco-chairman of thecompany,alleging that “the company failed to respond” to sexualharassmentallegations in thepastand even contractually shielded Harvey fromtermination.143 As theallegations

137. See MiaGaluppo&Pamela McClintock, Harvey WeinsteinTerminated from WeinsteinCompany,HOLLYWOOD REP.(Oct.8,2017, 4:15 PM), http://www.hollywoodreporter.com/news/harvey-weinstein-at-weinstein-1046874. 138. Id.;Jessica DiNapoli, TheWeinstein Company Filesfor Bankruptcy,BUS. INSIDER (Mar.19, 2018,10:33 PM), http://www.businessinsider.com/the-weinstein-company- files-for-bankruptcy-2018-3. “Inlight of newinformationabout misconductbyHarveyWeinstein that hasemerged in the past fewdays, the directorsofThe Weinstein Company— Robert Weinstein, LanceMaerov,Richard Koenigsbergand TarakBen Ammar— have determined,and have informedHarveyWeinstein,thathis employment with TheWeinstein Companyisterminated, effectiveimmediately,” read astatement fromthe TWCboard. Galuppo &McClintock, supra note 137. 139. Sullivan, supra note 136. 140. RichardMorgan, BoardApproval Harvey’s Contract SuggestsTWC Complicity,N.Y. POST,June 7, 2018, at 29. “Accordingtothe contract,which Weinstein signed in 2015, afirst offensewouldcosthim $250,000, asecond$500,000and athird $750,000. Foreachadditional instance,the contract continued, thecosttoWeinstein would levelout at [one]million[dollars].” Id. 141. Galuppo &McClintock, supra note 137. 142. Natalie Robehmed &MadelineBerg, With Harvey WeinsteinOut,the WeinsteinCompany Faces Serious Challenges,FORBES:CONSUMER (Oct.8,2017, 3:01 PM), http://www.forbes.com/sites/natalierobehmed/2017/10/08/sexual-harassment-scandal-poses- serious-business-challenges-for-the-weinstein-company/. “These investigations,ifdonethoroughly,can be extremelyexpensive, in therange of [twenty] million to [forty]million [dollars],given that the allegations span three decades,two continents,and involve potentially dozens of individuals,”saidDebra Katz,apartnerwith Katz,Marshall&Banks,who has worked on similarcases. Id. 143. DiNapoli, supra note 138.

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againstWeinstein increased, thereputationand valueofhis former company decreased.144 Aftermonths of legal andfinancial troubles, theWeinstein Companyfiled forbankruptcy in March2018.145

B. Spacey’s Termination

In thecase of KevinSpacey, theOscar winningactor and Houseof Cards star wasaccused by over thirty menofsexualassault.146 On October 30, 2017, actorAnthony Rapp wasthe firsttomakeanaccusationagainst Spacey,claimingthathewas fourteen andSpacey wastwenty-sixwhen Spacey made asexualadvance towardshim in 1986.147 Rapp allegedthat “Spacey laid on topofhim”and triedtoseducehim at Spacey’s apartment.148 Thenextday,“Netflix,the networkbehindSpacey’s Houseof Cards drama, [stated that it was] deeply troubled by the[allegations].”149 On November 3, 2017, Netflixsevered ties with Spacey while HouseofCards wasinproduction in itssixth season.150 Thestreamingservice publicly announced that it will “not be involved with anyfurther productionofHouse of Cards that includesKevin Spacey.”151 This severance of the Netflix/Spacey relationshipincludedthe decision to not releasethe film Gore,the Gore Vidalbiopic, whichwas in postproduction at thetime.152 Spacey contestedhis terminationand claimedthat“Netflix[couldnot] legally fire himbecausehis contract didnot containamoral[s] clause.”153 According to Spacey’s contract,hecan onlybesuspendedorterminated“if he becomes unavailable or incapacitated.”154 However, Spacey wasneither

144. Seeid. 145. Id. 146. KevinSpacey Timeline: Howthe StoryUnfolded,BBC: ENT.&ARTS, http://www.bbc.co.uk/news/entertainment-arts-41884878 (last updatedJan.7,2019); seealso HouseofCards (Media Rights Capital2013). 147. KevinSpaceyTimeline: Howthe Story Unfolded, supra note 146. 148. Id. 149. Id.; see also HouseofCards, supra note 146. 150. KevinSpacey Timeline: Howthe StoryUnfolded, supra note146; KristinePhillips, Netflix Drops HouseofCards StarKevin Spacey AfterNew Allegations Arise,WASH.POST:ARTS &ENT.(Nov. 4, 2017),http://www.washingtonpost.com/news/arts- and-entertainment/wp/2017/11/04/netflix-is-dropping-kevin-spacey-from-house-of-cards/; see also HouseofCards, supra note146. 151. KevinSpacey Timeline: Howthe StoryUnfolded, supra note146; Phillips, supra note 150; seealsoHouseofCards, supra note 146. 152. SeeKevin Spacey Timeline: Howthe StoryUnfolded, supra note 146; Phillips, supra note 150. 153. Sullivan, supra note 136. 154. TheBlast Staff, KevinSpacey Can’tBeOustedfrom HouseofCards Over Allegations;NoMoralsClauseinContract,BLAST (Nov.11, 2017,12:10 AM), http://www.theblast.com/kevin-spacey-morals-clause-contract-house-of-cards/.

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unavailableorincapacitated since“he voluntarilychecked himselfinto treatment in Arizona”after theaccusations againsthim surfaced.155 Netflix andthe production company, Media Rights Capital, were able to circumvent this issuebysuspendingthe actorbased on a sexual harassmentpolicy.156 Nonetheless, thedecisiontoremoveSpacey from Cards andnot releasethe featurefilm Gore reportedly cost Netflix$39,000,000.157 Additionally, Spacey wasalsoset to star in theRidleyScott-directed film Allthe Moneyin theWorld,but wasultimatelycut due to theallegations andthe role was recast to anotheractor,Christopher Plummer.158 Thedecisiontocut Spacey out of afilmthathad alreadywrappedand replace himwith anotheractor wasunprecedented, sincethe film wasdue to be released just sixweeks after thedecision.159 Imperative Entertainment, whichproduced thefilm, reportedly spent$10,000,000—a quarter of themovie’s original budget—to reshoot Spacey’s scenes.160

C. LouisC.K.’sTermination

On November 9, 2017, approximately amonthafter theWeinstein accusations andaweek afterSpacey’s,the NewYorkTimes publisheda storyregarding sexualmisconductaccusations made by five womenagainst famedcomedianand actor,LouisC.K.161 Dana MinGoodman andJulia Wolov, aChicago comedy duo, allegedthatduringa2002 visittoC.K.’s hotel room,hegot completelyundressedand masturbatedinfront of them.162 Similarly, comedian Rebecca Coreywas asked by C.K. if he could masturbate in front of her.163 Aday afterthese accusations surfaced, the

155. Id. 156. Id. 157. Seth Fiegerman, KevinSpacey Cost Netflix$39 Million,CNN: MEDIA (Jan.22, 2018, 8:45 PM), http://www.money.cnn.com/2018/01/22/media/netflix-kevin- spacey-cost/. 158. Brent Lang &Justin Kroll, ReplacingKevin Spacey on Allthe Moneyin theWorld Will Cost Millions,VARIETY:FILM:NEWS (Nov.10, 2017,1:34PM), http://www.variety.com/2017/film/news/kevin-spacey-christopher-plummer-all-the-money-in- the-world-1202611975/; ALL THE MONEYINTHE WORLD (ImperativeEntertainment 2017). 159. Lang &Kroll, supra note 158. 160. Id.; Rachel Withers, ReplacingSpacey: RidleyScott Speaks Outonthe Allthe Moneyinthe World Reshoot,SLATE’S CULTURE BLOG (Nov.29, 2017,4:19PM), http://slate.com/culture/2017/11/ridley-scott-on-the-urgent-reshoot-to-replace-kevin- spacey.html. 161.Ryzik et al., supra note121; seealso Jodi Kantor&MeganTwohey, Sexual MisconductClaimsTrail aHollywood Mogul,N.Y. TIMES,Oct.6,2017, at A1; Kevin Spacey Timeline: Howthe StoryUnfolded, supra note 146. 162. Ryziketal., supra note121. 163. Id.

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comedian cameforward andadmitted to hissexual misconduct.164 FX Productions subsequently cuttieswithLouisC.K.and will no longer credit himasexecutiveproducer;hewillalsonolonger receivecompensation for thefour showsthe comedian wasproducingfor theFXnetwork,including thecritically acclaimedseries Louie.165 HBOcancelled C.K.’s appearance on Night of TooMany Stars: AmericaUnitesfor AutismProgram and refused to show hispastprojectsonits on-demand services.166 Additionally, C.K.’s film ILoveYou, Daddy,initially slated forrelease theweekthe allegations surfaced,had its premiere cancelledand wasnot released domestically167 or internationally.168 Following asetback,the Orchard, who initiallybought theright to thefilmfor $5,000,000, pressed LouisC.K.’s attorneysfor areturndeal.169 Netflixalsocancelledastandupspecial deal with thecomic,estimated to have been worthnearly $30,000,000.170 However, because theagreement containedamorals clause, theservice provider only paid thecomic forthe specialthatwas filmed,savingthe company millions.171

D. Analysis

TheWeinstein,Spacey,and C.K. incidentsshedlight on the motivations of Hollywood studiosand executivesintheir push to include broadermoralsclauses in future entertainment contracts.172 In Weinstein’s

164. ElaheIzadi, LouisC.K.Responds to Sexual MisconductAllegations: These Stories AreTrue, WASH.POST:LIFESTYLE (Nov.10, 2017), http://www.washingtonpost.com/news/arts-and-entertainment/wp/2017/11/10/louis-c-k-these- stories-are-true/. 165. Id.;MadelineBerg, LouisC.K.’sLosses: HowMuchthe Sexual MisconductScandal MayCostthe Comedian,FORBES:MEDIA &ENT.(Nov. 10, 2017,1:21 PM), http://www.forbes.com/sites/maddieberg/2017/11/10/louis-c-k-s-losses-how-much-the- sexual-misconduct-scandal-may-cost-the-comedian/; seealsoLouie (3 Arts Entertainment 2015). 166. Berg, supra note165; seealsoNight of TooMany Stars: America Comes Together forAutismPrograms (ComedyCentral broadcastMar.8,2015). 167. Izadi, supra note 164; I LOVE YOU,DADDY (Circus King Productions). 168. ElsaKeslassy&NickVivarelli, LouisC.K.’s ILoveYou, Daddy Dropped by InternationalDistributors,VARIETY:FILM (Nov.14, 2017, 4:32 AM), http://www.variety.com/2017/film/news/louis-ck-i-love-you-daddy-dropped-by-international- distributors-1202614383/. 169. Anthony D’Alessandro, LouisC.K.BuyingBack ILoveYou, Daddy Following Scandal,DEADLINE (Dec. 8, 2017,12:27 PM), http://www.deadline.com/2017/12/louis-c-k-buying-i-love-you-daddy-back-from-the-orchard- sexual-misconduct-scandal-1202222771/. 170. Berg, supra note165. 171. Id. 172. Robehmed, supra note 16.

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case,the accusations leveledagainst himled to hisfallfromgrace in Hollywood andthe filing of criminal chargesagainst him.173 Additionally, theaccusations ledtoawell-established andprofitablecompany likethe Weinstein Companytofallinamatterofmeremonths.174 Just afew weeks later, KevinSpacey,acritically acclaimedand Oscar awardwinning actor, went from one of themosthighlypaidcelebrities in 2016 to asocialpariah in amatterofdays.175 Additionally,Spaceywas paid forthe entire final seasonofHouseofCards,eventhoughhedoesnot appear in asingle episode.176 Similarly, Louis C.K.,beloved comicand powerhouseofthe comedy industry,lostnearlyevery meansofhis former income in thespanof days,however,hewas stillpaidfor thefirst Netflixstand upspecial which hasnever been released.177 Althoughthe indiefilmcompany,The Orchard, managedtorecoupthe costofthe film by buying andreselling ILoveYou, Daddy back to C.K, the company could not recoup the revenue the film wouldhavegenerated if thefilmhad been released.178 Thus,inlight of these financialpitfalls, Hollywood is readytoturntomoralsclauses oncemore.179

V. #METOO MAKES A CHANGE:HOW THE MOVEMENT IS CHANGING HOLLYWOOD DEAL-MAKING BY BROADENING THE LANGUAGEOFMORALS CLAUSES

From high-ranking movieexecutives to moviestars, rampant sexual harassmentand rape arenow altering how business in Hollywood is conducted.180 Thefearoffinancial loss anddeclining public perception has ledsomeHollywood studiosand executives to consider theadditionofbroad morals clausesinentertainment contractsasasolutiontotheir woes.181 Thesebroad moralsclauses will be draftedinsuchawayastoaccount for accusations of sexualharassment or rape,not just formal chargesand convictions forthese offenses.182 Foxisone studiosthatisattemptingto insert broadmoralsclauses into talent agreements.183 TheFox provisions

173. Seeid. 174. See DiNapoli, supra note 138. 175. See Madeline Berg, Here’s HowMuchMoneyKevin Spacey CouldLose Following HisSexual Harassment Scandal,FORBES (Nov.3,2017, 2:20 PM), http://www.forbes.com/sites/maddieberg/2017/11/03/how-much-money-kevin-spacey-could- lose-following-sexual-harassment-scandal/#2b4746efd786. 176. Siegel, supra note 5. 177. See Berg, supra note165. 178. See D’Alessandro, supra note 169. 179. Siegel, supra note 5. 180. Robehmed, supra note 16. 181. Seeid. 182. Id. 183. Siegel, supra note 5.

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wouldallowfor thetermination of thetalentagreement “ifthe talent engages in conductthatresults in adverse publicityornotoriety or risksbringingthe talent into public disrepute, contempt,scandal, or ridicule.”184 Paramount Pictures is anotherstudioeyeingthe inclusionofbroad morals clausesin entertainmentcontracts with talent.185 Further, severalsmallerdistributors have alreadystarted to include them in theircontracts.186 An exampleofa broadmoralsclausealready addedtoatalent agreement by one film distributor is:

In theevent Distributorbecomesaware of aviolationor allegedviolationofDistributor’s policybyany keyindividual whetherornot such violations occurred priorto, during, or after such services were provided,orDistributor becomesaware that a KeyElement hascommittedorhas been chargedwithanact considered understate or federallawstobeafelony or crimeof moralturpitude,thenDistributor shallhavethe rightto: (i)cease distributionofthe Picture; (ii) delete anycreditgiven to such Key Elementinconnectionwiththe picture; and/or (iii) modify,edit, and/or reshoot thePicture to theextentnecessary to removethe KeyElement from thePicture.187

However, theseclauses will notjustaffecttalent.188 Morals clauses will also be addedtocover Hollywood executives too, sincedirectors and talent canalsobedetrimentally affected by theactions of high-ranking executives, like Harvey Weinstein,especially if thosefigures become associated with sexual impropriety.189 Theinclusion of thesemoralsclauses in Hollywood contractsis alreadyunderfire.190 TheDirectors GuildofAmerica andthe WritersGuild of Americaare laborunionsthathavelong bannedmoralsclauses in member agreements andare especially wary of theincomingwaveofbroader morals clauses.191 Manyothershypothesize that broadermoralsclauses in contracts

184. Id. 185. Id. 186. Id. 187. Id. 188. See Siegel, supra note 5. 189. Id. 190. Seeid. 191. Robehmed, supra note 16. We arealsohearing reportsaswellofmorewidespread useof increasingly onerousmorality clauses, andthatisobviously asignificantconcern forus....While we do nothavecontract language directlyprohibiting these clauses, we will be taking acloselook at this issuetoensurethatthe unionistaking allappropriatemeasurestoprotect ourmembers. Id.

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arebad precedentbecausetheyallowfor an agreement’s terminationinthe eventthatthe talent or executiveismerely accusedofsexualmisconductor rape andnot formally chargedwith anycrime.192 Additionally,someargue that broadmoralsclauses can onceagain be used to target innocent individuals, likethe Hollywood Tenscandalofthe McCarthy era, andlead to unfairtermination.193 This Commentwill addressthese concerns andopine that this newera of broadermoralsclauses areheretostay.194

VI.THE NEW MORALS CLAUSES ARE HERETOSTAY

Hollywood’spushfor broadermoralsclauses in thewakeofthe #MeToo movement maystrikesomeasatruly unprecedentedmove.195 Whileitistruethatthe #MeToo movement hasreverberatedthroughout the entertainmentindustryinawaynoother movement has, broadmorals clauses arenothing newand remainconsistentwiththe morals clauses of the past.196 Thenew morals clauses areheretostayfor threereasons:first,they areverysimilar to themoralsclauses of theearly andmid-1900s andwillbe used in consistencewiththe morals clauses of thepast.197 Second, likethe morals clausesofthe twentieth century,the newwaveofbroader andmore expansivemoralsclauses will be upheldbythe courts sinceprevious courts have upheld similarprovisions.198 Third, public policy callsfor theinclusion of broader morals clauses to help remedy theepidemicoframpant sexual misconductinHollywood.199

A. Broad Morals Clauses AreNothing New

Sincethe inception of themoralsclause,moralsclauses have typically been draftedbroadly giving thecontractingemployerthe power to terminatethe contract in theevent that thetalentcommits an offense that

192. Seeid. 193. Id.; seealso Epstein, supra note 50,at76–78. 194. See discussion infra Part VI. 195. Siegel, supra note 5. Lawyer Linda Lichtersaid, “[t]hisisawholenew territory.” Id. 196. See Gallagher, supra note10, at 92–93. 197. Id. 198. Id. at 96; seealso Epstein, supra note50, at 77; Kressler, supra note 11, at 245–46. 199. See John Dorsey, #MeToo: Use a Morals Clause in ContractstoDeter and QuashPerpetrators of Misconduct,EXHIBIT 10 (Feb.28, 2018), http://www.exhibit10.com/2018/02/28/metoo-use-a-morals-clause-in-agreements-to-deter- and-quash-misconduct/.

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brings them or thecompany in public disrepute.200 TheUniversal Film Company’sfirst morals clause in 1921did notinclude theexact conductthat wouldtriggerthe provision, such as aconvictionofaspecifictypeof felony.201 Instead,the clause conveyed broadsweepinglanguagethat allowedfor theterminationofthe contract foravarietyofreasons.202 For example, the1921Universal morals clause wasdrafted in amanner that allowedfor theterminationofthe contract if thetalentdid not“conduct himself—herself—with dueregardtopublicconventions andmorals.”203 Further, theclausealsogavethe employer theright to terminatethe contract if thetalentengaged in conduct that tended to “shock, insult, or offend the community or outrage [the]publicmorals[and] decency.”204 Therecently proposed Foxmoralsclauseissimilarly draftedinanall-encompassing manner, allowing forthe terminationofthe agreementifthe talent’s behavior results in “adverse publicity or notoriety or risksbringingthe talent into public disrepute, contempt,scandalorridicule.”205 Thus,the newbroader morals clausesare notanovelphenomenon in theentertainment industry and areconsistent with thebroadly tailored morals clausesofthe past.206

B. BroaderMoralsClauses Will Be Used as Originally Intended

Thenew wave of broadmoralsclauseswillalsobeused as originally intended—as atool thecontractingemployerequipsagainst negative public perception of thetalentor, by association, thecompany.207 Muchlikethe aftermathofthe FattyArbucklescandalof1921, contractingemployers of todaysee morals clausesasamethod to protectthemselvesfromfinancial ruin.208 As the#MeToomovementhas shownHollywood,sexualassaultand rape accusations made againsttalenthurttheir employersfinancially because of thetalent’snegativeperceptioninsociety.209 Thus,these broadermorals

200. Gallagher, supra note10, at 92–97. “[T]he language of morals clauses hasonlybeen slightly alteredovertime....” Id. at 92.“[M]orals clauses todayare not all that different from theoriginalone institutedbyUniversalFilmCompany in 1921.” Id. at 97. 201. Id. at 93. 202. Id. 203. Gallagher, supra note 10,at93; Morality Clause forFilms: Universal Will Cancel EngagementsofActorsWho ForfeitRespect., supra note 64. 204. Gallagher, supra note 10,at93; Morality Clause forFilms: Universal Will Cancel EngagementsofActorsWho ForfeitRespect., supra note 64. 205. Siegel, supra note 5; seealso Gallagher, supra note 10,at93. 206. Gallagher, supra note 10,at93–94 (discussing that thelanguageofmorals clauses hasremainedlargely unchanged sincethe 1920s). 207. Pinguelo &Cedrone, supra note29, at 352; Gallagher, supra note10, at 88, 97. 208. Gallagher, supra note10, at 88,93. 209. Fiegerman, supra note157;Robehmed, supra note16.

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clauses aremerelytools to stymie theprobability of financiallossinthe eventofanaccusationofsexualignominy.210 However, thereare thosewho fearthatbroader morals clausesset a badprecedentbecause they couldbeused inappropriately.211 Thosewho sharethisopinion about broadmoralsclauses assertthattheycan be used in malicious ways to target innocentpeopleand refuse them pay.212 These individualsallude to theinappropriateusageofthe morals clauseinthe late 1940s and1950s,whenmoralsclauses were used to target suspected communists.213 However, thecomparisonbetween the#MeTooand theRed Scareisafalsedichotomybecause where#MeToosoughttohelpthe victims of an industry infected by theepidemicofsexualharassmentand rape,the McCarthyera waswrought with themalicious targetingofindividuals merely due to politicalintolerance.214 Further, it is unlikelythattargeting thoseaccused of sexualmisconductwillleadtoawitchhuntand the unnecessary terminationoftalentcontracts because this wouldbea counterintuitivebusinessventure of theemployer.215 An employer would likelyonlyuse themoralsclausetoterminate an agreementifthere is a substantialreasontodoso, including multiple allegations of sexualassault or rapeorasingle allegation with validand unequivocal evidence.216

C. BroaderMoralsClauses Will Be Upheld in Court

Like themoralsclauses of yesterday, it is likely that thenew wave of broadermoralsclauses will similarly be upheldbycourts.217 In fact,litigants typically allege that morals clausesare broadlyorambiguously draftedto such adegreethattheydid nothaveknowledgeofwhatconduct would triggerthe clause.218 Theseallegations arecommonlydismissed as without merit.219 Forexample,inNaderv.ABC Television,Inc.,220 aUnitedStates

210. Robehmed, supra note 16. 211. Siegel, supra note 5. 212. See Robehmed, supra note16. “[Iam] allfor [#MeToo].Itotallysupport it.But Ithink[broad morality clauses] create abad precedent,”saysattorney LindaLichter.“[Itis] one thing to saysomeone is acriminal.[It is]another thing to saysomeone hasbeen accused by someoneand youcan fire themand notpay them.” Siegel, supra note 5. 213.Kressler, supra note 11, at 238, 242. 214. RichardBeck, #MeToo Is NotaWitchHunt,VOX (Jan.11, 2018,9:41 AM), http://www.vox.com/identities/2017/12/21/16803206/metoo-not-sex-moral-panic. 215. Seeid.;Robehmed, supra note 16. 216. See Gallagher, supra note10, at 88;Robehmed, supra note 16. 217. See Nader v. ABCTelevision, Inc.,No. 04-5034,2005U.S. App. LEXIS 19536,at**5–7 (2dCir.2005);Gallagher, supra note10, at 88,96. 218. SeeNader,2005U.S.App. LEXIS19536, at **5–7. 219. Seeid. at **2, **5–7.

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CourtofAppealsupheld amoralsclauseinatalent agreementbetween MichaelNader,anactor on soap opera AllMyChildren,and hisemployer, American Broadcasting Company(“ABC”).221 AfterNader wasarrested for “one countofcriminalsaleofacontrolled substance...and one count of resistingarrest,”ABC subsequently terminated himfromemploymentand Naderwas writtenout of theshow forviolation of hismoralsclause.222 Naderfiled alawsuit againstABC alleging themoralsclausewas ambiguous,overlybroad,and vagueonits face.223 Thetrial courtgranted summaryjudgement forABC holding that Nader’sarrestwas aproper triggerfor theclause.224 On appeal,the Second Circuitagreed with thetrial court’s decision that morals clauses have long been upheld as valid and enforceable.225 Further, thecourtheldthatNader’s actions were aproper triggerfor themoralsclausebecause hisconductgenerated negative media attention upon ABC.226 It is impliedinthe court’sreasoning that the assertionthatthe clause wasoverbroad wasmeritlessbecause, althoughthere wasn’t specific language in the contract that stated that the agreement could be terminated in theevent of an arrest,the languagedid specifically statethat anyconductthatdamages thereputationofthe employer couldtriggerthe clause.227 Thus,regardless of anyformalcharges, amoralsclausewillbe upheld if theemployee’sbehavioradversely affectsthe employer’s reputation.228 Similarly, in Galavizv.Post-Newsweek Stations,229 theFifth Circuit upheld amoralsclauseinanemploymentcontract holdingthataplaintiff’s behavior that adversely affectsthe employer’s reputationisasufficient triggerfor amoralsclause.230 In this case, Virginia Galaviz, atelevision

220. No.04-5034,2005U.S. App. LEXIS19536 (2dCir.2005). 221. Id. at **1. 222. Nader v. ABCTelevision, Inc.,330 F. Supp. 2d 345, 346–47 (S.D.N.Y. 2004). 223. Id. at 348. Nader’s morals clause read: If,inthe opinionofABC, Artistshall commitany act or do anything whichmight tend to bringArtistinto public disrepute, contempt,scandal,or ridicule,orwhichmight tend to reflectunfavorably on ABC, anysponsor of a program,any such sponsor’s advertisingagency, anystations broadcasting or scheduledtobroadcast aprogram,orany licensee of ABC, or to injurethe success of anyuse of the Series or anyprogram,ABC may, uponwrittennoticetoArtist, immediatelyterminatethe Term andArtist’semploymenthereunder. Id. at 346. 224. Id. at 349. 225. Nader,2005U.S.App. LEXIS19536,at**5. 226. Id. at **6. 227. Seeid. 228. Seeid. 229. No.09-50730, 2010 U.S. App. LEXIS11790, at **1 (5th Cir. 2010). 230. Id. at **5.

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news reporter, wasterminatedbyher employer,Post-Newsweek Stations,for triggering hermoralsclauseafter adomestic dispute ledtoher arrest.231 The morals clause didnot specifically include languagethatstatedthatanarrest wouldtriggerthe morals clause.232 Galavizfiled alawsuit againsther former employer andthe district courtgranted summaryjudgment in favorofPost- Newsweek.233 On appeal,Galaviz claimedthather morals clause wasbroad andambiguous.234 Nonetheless, theFifth Circuitheldthather conductwas a sufficient triggerfor themoralsclauseand that it wasnot broadnor ambiguous.235 Thecourt reasonedthatsince hermoralsclauseincluded language allowing forthe terminationofthe agreementifthe employee’s behavior“adversely affectsthe reputationorbusinessof[thestation]orthe standing of [the station]”and Galaviz’sconductdid result in thenegative publicityofthe company, then theterminationofGalaviz waswholly justified.236 Thus,regardlessofanarrest, an employee’s conductthat negativelyimpactsthe reputation of theemployerwillbesufficient to trigger amorals clause.237 Regardingthe newwaveofbroader morals clauses afterthe #MeToo movement,the clauseswillallow forthe terminationofthe agreementeven if thetalentismerelyaccused of sexualharassmentorrape.238 It is the employer’s discretion to determinewhether theaccusations warrantthe terminationofthe agreement.239 However, unlike Nader and Galaviz,the newwaveofmoralsclauses will include language that specifically states that accusations of sexualharassmentorrapecould ultimately triggerthe morals clauses.240 It is worthnotingthatthe contractsinboth Nader and Galaviz did not includespecificlanguagethatarrests wouldtriggertheir respective

231. Id. at **2. 232. Id. If at anytimeEmployee failstoconducthimself or herselfwith due regard to public morals anddecency,orifEmployee commits anyact or becomes involvedinany situationoroccurrence tendingtodegrade Employee in the community or whichbringsEmployee into public disrepute,contempt, or scandal, or whichmateriallyand adverselyaffects thereputationorbusinessof[the station] or the standing of [the station] as abroadcastlicensee, whetherornot information in regard theretobecomes public, [the station] shallhavethe righttoterminate the Agreementontwenty-four ...hoursnoticetoemployee. Id. 233. Galaviz,2010U.S.App. LEXIS11790,at**4. 234. Id. 235. Id. at **5. 236. Id. at **2, **5(alterationinoriginal). 237. Seeid. 238. Siegel, supra note 5. 239. Gallagher, supra note10, at 91. 240. Siegel, supra note 5; seealsoGalaviz,2010U.S. App. LEXIS11790, at **2; Nader v. ABCTelevision, Inc.,No. 04-5034, 2005 U.S. App. LEXIS19536, at **6(2d Cir. 2005).

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morals clausesand yetthe courts stillupheld theseclauses, reasoningthat anyactionthatadversely affectsthe employer is sufficienttotriggerthe moralclauses andterminate theagreement.241 It is likely that sincemodern entertainment agreements will specifically statethataccusations areenough to triggeraclause, future talent cannot successfully claimthatthe new morals clauses in theircontractsare overly broadand ambiguous since they will receive amplenoticeofthese triggers.242 Thus,itlogically followsthat if thebroad morals clauses of thepasthavebeen upheld by thecourts,thenit is likelythatthe newwaveofbroadermoralsclauses that account forsexual misconductand rape allegations will similarlybeupheldbythe courts,so long as theconductadversely impactsthe employersreputation.243

D. BroaderMoralsClauses Make Sense

Giventhe significantimplications sexual assaultand rape have on victims, it is prudentthatHollywood, and othercompanies, adoptbroader morals clauses in entertainmentcontractsthatcan be terminated by legitimate allegations of sexualmisconductorassault.244 Broadermorals clauses will better servepublic policybecausetheycan help shedlight on the sexualharassment andassault culture in Hollywood andserve as a restraininginfluence on talent to preventfuturesexualmisconduct.245 #MeToo’s modus operandiistohelpvictimsofsexualassault andviolence by shedding lightonworkplace misconductand broadermoralsclauses in Hollywood contractscan help assistinthisendeavor.246 Hollywood has alreadyseen an unprecedented shiftinculture in thewakeof#MeToo.247 Influentialorganizations have updatedtheir codesofconductand are implementingnew rulestocurbtalent’smisbehavior.248 Additionally, Hollywood’sculture of silenceonsexualviolencehas been breached and handedlegal artillery in thewar againstsexualviolenceinthe form of Time’s Up.249 TheTime’sUpLegal DefenseFund offers legaland financialsupport

241. SeeGalaviz,2010U.S. App. LEXIS11790,at**1–2; Nader,2005U.S. App. LEXIS19536,at**5–6. 242. See Robehmed, supra note16; Siegel, supra note 5. 243. See Gallagher, supra note10, at 88;Sullivan, supra note 136. 244. See Dorsey, supra note 199. 245. Seeid. 246. See Siegel, supra note 5. 247. Claire Atkinson, From Coffee Shops to Boardrooms, Talk in Hollywood Is on Change After#MeToo,NBC NEWS (Mar.3,2018, 4:10 AM), http://www.nbcnews.com/storyline/sexual-misconduct/coffee-shops-boardrooms-talk- hollywood-change-after-metoo-n852766. 248. Id. 249. See Langone, supra note 105.

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formen andwomen whodesire to fightsexualmisconductbyuse of the justicesystem.250 Legaland financialsupportcoupled with abroader morals clause canhelpvictims of sexualmisconductfindjustice in thecourtroom.251 Additionally,these typesofmoralsclauses can serveasadeterrent to misbehaviorbyproviding an incentive fortalenttoconductthemselvesin amannerthatwouldnot triggerthe clause.252 Morals clauseshavealways been intended to serve as arestraining influenceontalentconduct and broadermoralsclauses areconsistent with this intention.253 In themidst of the#MeTooera,the effectsthatsexualassault andrapeallegations have on a celebrity’s careerare apparent.254 The#MeTooeffect on workplaceculture is,inpart, duetocelebrities acknowledgingthe careerendingimplications of theseallegations.255 Specifically insertinglanguageintoaprovisionofa contract further provides an incentive not to engage in thesefrowned upon behaviors by solidifying the exact type of behaviors that would ultimately triggeramorals clause.256

VII. CONCLUSION

Morals clauseshavebeen around fornearlyone hundred yearsand have been sought outbyemployers as ameanstoprotect theirreputationin thepubliceye.257 Forthisreason, it is no surprise that in thewakeofthe #MeToo movement,Hollywood studios andexecutivesturnedtheir attention onceagain to moralsclauses in an attempttodistancethemselvesawayfrom toxictalentwho were beingtriedinthe courtofpublicopinion.258 Whether theseHollywood companies aregenuine in theirsentiments against workplace sexualmisconductisbesidethe point.259 These companies are businesses likeany otherwhoseprimary focusistobeasprofitableas possibleand aimtoavoid financialruin.260 Showingsolidaritywiththe recent cultural trendofbreakingthe silenceonworkplace harassmentisbut a meansofavoidingfinancial ruin.261 However, some feel uneasy aboutthe prospect of terminatinganagreementsolelyonthe basisofmereallegations

250. Id. 251. Id.; seealso Robehmed, supra note16. 252. Rosenbaum, supra note 44,at131. 253. Seeid. at 151. 254. See Corey, supra note 125; Thorpe, supra note 104. 255. See Robehmed, supra note16; Thorpe, supra note 104. 256. See Robehmed, supra note16; Siegel, supra note 5. 257. Gallagher, supra note10, at 88–89;Robehmed, supra note 16. 258. See Robehmed, supra note16; Siegel, supra note 5. 259. See Robehmed, supra note16; Siegel, supra note 5. 260.Siegel, supra note 5; seealso Robehmed, supra note 16. 261. See Atkinson, supra note 247.

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of misconduct.262 While thesearguments mean well, they fail to takeinto accountthe nature of businessesasrationalentitiesthatwould not terminate an agreementsolelyonthe basisofasingle unsubstantiated allegation with little public condemnation.263 Ablogpostonbabe.net264 accusing comedian andactor Aziz AnsariofsexualmisconductfailedtoleadtoAnsari’s terminationfromNetflix.265 It is likely that Netflix, thestreamerofAnsari’s show Master of None,acknowledged that theallegations made againsthim were unsupported anddid not causethe public to turn againsthim.266 It is even more likely that thestreaming service took noteofthe public conversationthatfollowedthe accusationand determined that it didnot rise to levelofthe allegations made againstKevin Spacey andLouisC.K.267 As of July 2018, Master of None is availablefor streamingonNetflix.268 This Commenthas notattempted to tout what these actors do or do not deserve in light of these allegations.269 Norhas this Commentopinedon thefairnessofpunishing these starsbyterminating theircontracts.270 This Commenthas simply attemptedtoaddress theway in whichsocietalshifts in norms andvaluesaffecttalentcontracts andthe mannerinwhich dealsare made in Hollywood.271 Thecomingwaveofbroader morals clauses in Hollywood entertainmentcontractsinthe wake of #MeToo is but an example of this phenomenon.272 The#MeToomovementisanillustration of how societal norms andvaluesshape thelaw,but also serves as an exampleof how thelaw shapes societybyincluding morals clauses in contracts, which maydeter conductand shed light on thephenomenon of workplacesexual misconduct.273 Therefore, theargumentsmadeherein—that broadermorals

262. See Robehmed, supra note16; Siegel, supra note 5. 263. See ZWEIG, supra note 26, at 768. 264. See Katie Way, IWentonaDate with Aziz Ansari.ItTurnedintothe Worst Night of My Life,BABE (Jan.13, 2018), http://www.babe.net/2018/01/13/aziz-ansari- 28355. 265. See Lisa Bonos, Here’sHow Aziz Ansari CouldUse Master of None’s Next Season to RebuildHis Image,WASH.POST:SOLO-ISH (Jan.24, 2018), http://www.washingtonpost.com/news/soloish/wp/2018/01/24/heres-how-aziz-ansari-could- use-master-of-nones-next-season-to-rebuild-his-image/?utm_term=.095d644c740f;Way, supra note 264. 266. See ChristopherHooton, Master of None Season 3Still on theTable, Aziz Ansari Is DoingGood, Says Lena Waithe,INDEP.: NEWS (Mar.21, 2018,7:49AM), http://www.independent.co.uk/arts-entertainment/tv/news/master-of-none-season-3-aziz- ansari-babe-net-twitter-lena-waithe-a8266406.html. 267. Seeid. 268. Master of None (3 Arts Entertainment2015). 269. See discussion supra Part IV. 270. See discussion supra Part IV. 271. See discussion supra Part V. 272. Siegel, supra note 5. 273. Seeid.;Temin, supra note 127.

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clauses arenot anew phenomenon—willnot be abused,willbeupheld in court, areconsistent with public policy, andserve to alleviateseveral concerns aboutthe broadening of morals clausestoaccountfor allegations andaccusations of sexualmisconductand assault.274

274. See Gallagher, supra note 10, at 88,104–05; Dorsey, supra note 199; Siegel, supra note 5.

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