Remus Films, Ltd. v. William Morris Agency, Inc.

This is plaintiff’s appeal from a judgment of dismissal entered after the court had sustained a demurrer without leave to amend. As appears from the pleadings, the action arose out of the following events:

On May 31, 1956, plaintiff entered into a written agreement with Stewart Granger, an actor, whereby he agreed to perform in a motion picture entitled “The Whole Truth.” Concurrently with the execution of the agreement plaintiff loaned to Granger the sum of $50,000, which was to be repaid to plaintiff by an offset against money which plaintiff was to pay for Granger’s services at the commencement of his performance. It was further agreed that if Granger failed to render services, the $50,000 would become immediately due and payable. Granger's obligation was also evidenced by a nonnegotiable note, signed by Granger, whereby he promised to pay to plaintiff the sum of $50,000 on or before February 1,1958.

Contemporaneously with the employment agreement, defendant entered into a written guaranty agreement, whereby defendant promised plaintiff that if Granger failed to render services and failed to repay the $50,000, defendant would pay it, and the note would then be assigned to…