In documents obtained by ET, Clarkson claims the company violated the California Labor Code by "procuring, offering, promising, or attempting to procure employment or engagements” without being properly licensed. She also argues that all of their agreements be "declared void and unenforceable," including their reported verbal contract in which she agreed to pay them 15% commission on her gross earnings. ET has reached out to Clarkson.
Clarkson alleges in her labor petition that the company evaded "the licensing requirements" of the Talent Agencies. Among their alleged violations include failing to submit a written application for a license and a formal talent agency agreement. She also claims that they demanded "unconscionable fees and compensation" from her for "illegal services," failed to deposit a $50,000 surety bond with the Labor Commissioner, failed to post a schedule of fees in their offices which is in violation of the California Labor Code, as well as failed to maintain proper records.
"Based on these wrongful acts," Clarkson argues that all agreements should be "declared void and unenforceable," that she doesn't have to pay Starstruck any commission they are seeking, and that they should return any money she previously paid them.
Starstruck's attorney Bryan Freedman, meanwhile, expressed in a statement ET, that the singer's petition "conveniently ignores the fact that Kelly had her own licensed talent agency [Creative Artists Agency] at all times."
"While Starstruck Management Group provided talent management services on her behalf, it did so at all times that CAA was her agency of record," he continued. "It is unfortunate that Kelly is again attempting to avoid paying commissions that are due and owing to Starstruck to try and achieve some perceived advantage in her ongoing custody and divorce proceedings."
According to court documents obtained by ET in September, Starstruck sued Clarkson, claiming they are owed more than $1.4 million in unpaid commissions. The suit alleges a breach of oral contract, and seeks declaratory relief and an accounting.
The company has represented Clarkson for the last 13 years and was paid a 15% commission on her gross earnings. The suit alleges that the singer has paid the firm $1.9 million this year, but owes another $1.4 million, and that they will "likely" be owed about $5.4 million by the end of 2020 in estimated commissions.
The lawsuit does note that Clarkson and Starstruck do not have a written management agreement, alleging that the terms of their deal were verbally negotiated by her attorney and business manager in 2007. The docs also claim that Clarkson spoke with Narvel, confirming their management agreement.