Rko Radio Pictures, Inc. v. Sheridan. Sheridan v. Rko Radio Pictures, Inc

This case presents cross-appeals from a judgment rendered below on a jury verdict in a breach of contract suit brought by Sheridan against RKO. Jurisdiction was based on diversity of citizenship. 'The jury returned a verdict in favor of Sheridan for $50,000 plus interest.

On April 29, 1949, Sheridan and RKO entered into a written contract whereby RKO employed Sheridan to portray the leading female role in a motion picture entitled “Carriage Entrance.” RKO agreed to pay Sheridan $150,000 for the term of the contract: $50,000 thereof payable on the first regular payday after photography commenced, the remainder deferred and payable only from the gross receipts of the picture.

Paragraph 1 of the contract stated that Sheridan was not required to render any services under the agreement unless and until she approved the script, the director and the leading male actor» At the time Sheridan signed the contract, she also signed a letter prepared by RKO, in which she stated that she approved the script, director and Robert Young as leading male actor. The letter further stated that RKO was not obliged to assign Young to the picture, but that Sheridan reserved the right to approve any…