Actor Terrence Howard is seeking a reconsideration of a Los Angeles Superior Court decision that dismissed his lawsuit against Creative Artists Agency LLC, according to court documents from Monday. Howard filed the original lawsuit in December 2023, alleging that the talent agency fraudulently convinced him to take less money for his starring role as Lucious Lyon in the Fox television series Empire. Los Angeles Superior Court Judge Cherol J. Nellon heard arguments on the reconsideration motion on Monday and took the issues under submission.
Arguments and Courtroom Disagreements Over Exhibits
In the reconsideration motion, Howard’s attorney contends that certain exhibits believed by Judge Nellon not to have been lodged with the court on July 22 were indeed handed over two days earlier, on July 20. The 57-year-old actor’s lawyer is asking for the July 31 dismissal motion to be reversed, or alternatively, for the court to permit additional briefing alongside a further hearing. According to the actor’s attorney, “CAA’s own moving evidence… did not establish that additional Universal Bridges revenue could not benefit Howard.”
In contrast, defense attorneys for Creative Artists Agency argued in their court papers supporting the dismissal that Howard lacked standing to bring his claims and that the claims were barred by the statute of limitations. Furthermore, defense lawyers maintained that the agency negotiated diligently on Howard’s behalf and characterized his claims and damages as speculative and “utterly meritless.”
The Loan-Out Company Ownership Issue
Judge Nellon initially issued her dismissal ruling on July 31. Despite assuming that Howard could demonstrate causation, breach, duty, and the elements of fraud concerning liability, the judge ruled that he had not established a triable issue regarding his right to damages. The core of the judge’s reasoning hinged on corporate structure.
Judge Nellon explained that even if there were an increase in compensation, the funds would have been to the benefit of Howard’s loan-out company, Universal Bridges, and not to the actor personally. Typically established by athletes, writers, musicians, or actors, a loan-out company is a personal business arrangement where the founder is employed by their own corporation, which then provides their services to other employers or third-art studios.
Did You Know? “Empire” had a debut that averaged nearly 10 million viewers, marking Fox’s most-watched debut in three years, according to court filings from the December 2023 lawsuit.
Context of the “Empire” Success and Next Steps
The lawsuit detailed the massive initial footprint of the Fox drama, noting that “Empire” was an instant success that not only exceeded the network’s viewership expectations but also brought in significant praise by critics throughout the entertainment industry. The ongoing reconsideration motion means the legal battle may see further developments depending on how Judge Nellon evaluates the newly emphasized exhibits regarding Universal Bridges and the disputed filing dates.
Frequently Asked Questions
When did Terrence Howard file his lawsuit against Creative Artists Agency?
Howard filed the lawsuit in December 2023 in Los Angeles Superior Court.
What is a loan-out company in the context of this case?
A loan-out company is a personal business structure created by an entertainer or athlete where the creator becomes an employee of their own corporation, which then loans their services to third-party employers like television studios.
Why did Judge Nellon dismiss the lawsuit on July 31?
The judge ruled that Howard failed to create a triable issue regarding his entitlement to damages, concluding that any increased compensation would have benefited his loan-out company, Universal Bridges, rather than Howard personally.
Related reading