Denlea & Carton LLP (together with Steptoe) successfully represented Elite Model Management in a series of four recent rulings in the Los Angeles Superior Court, defeating attempts by brands to shift California Labor Code waiting-time penalties onto the agency.
Over the past year, a new tactic has emerged in California photo-shoot payment disputes: when sued for late payment under the Labor Code, brands and producers have increasingly tried to pull the model’s agency into the litigation and argue that, if the brand is liable, the agency should reimburse them.
Courts have now repeatedly rejected that approach.
Denlea & Carton obtained four separate dismissals, each reinforcing a core principle: waiting-time penalties are directed at employers — not talent agencies acting in their representative capacity. When the agency is not the employer and the paperwork reflects an agency relationship, courts are unwilling to recast the agency as the statutory “wage payer.”
Summary of the Four Rulings
1) Kusez v. Anastasia Beveryly Hills (Dept. 57 – Sept. 24, 2025)
The brand asserted indemnity, contribution, and other theories seeking to shift potential waiting-time exposure to the agency. The court found the brand had not pled a shared legal obligation that would justify shifting penalties, though it allowed amendment on other theories.
2) Kusez v. Anastasia Beverly Hills (Dept. 57 – Feb. 10, 2026)
After multiple amendments, the court sustained Elite’s demurrer without leave to amend and ordered dismissal with prejudice.
3) Riley v. Endless Blu (Dept. 17 – Dec. 22, 2025)
Following one amendment, the court again sustained the demurrer without leave to amend. The brand failed to allege facts establishing a breach of contract.
4) Iakovina/Riley v. Lucy In The Sky (Dept. 45 – Feb. 5, 2026)
The court sustained Elite’s demurrer to the amended cross-claims without further leave to amend. It rejected the brand’s attempt to impose “implied Labor Code obligations” that conflicted with the express terms of the invoice.
Industry Implications
These rulings provide important guidance for participants in the modeling, production, and creator-economy sectors:
This update is for informational purposes only and does not constitute legal advice.
Denlea & Carton LLP is pleased to announce that John Kane and Chris Gallagher have recently joined the firm, further strengthening our capabilities in complex commercial litigation, investigations, and high-stakes dispute resolution.
“John and Chris are outstanding litigators who bring exceptional experience and perspective to our firm,” said Jeff Carton. “Their backgrounds in complex litigation and investigations complement the firm’s strategic growth and align with our commitment to deliver sophisticated legal solutions to our clients.”
John Kane represents clients in complex commercial litigation matters in state and federal courts throughout New York. His practice includes drafting complaints and dispositive motions as well as managing all phases of discovery in complex litigation matters.
Before joining Denlea & Carton, John served as counsel in the New York office of an international law firm, where he focused on bankruptcy and financial restructuring litigation. He is also an experienced jury consultant, offering valuable insight into trial strategy and juror research.
Passionate about sports law, John has appeared on and written commentary for the sports law podcast Conduct Detrimental, where one of his articles won the 2024 NIL Essay Competition.
John earned his undergraduate degree from Boston College and his law degree from the University of Virginia School of Law. He is admitted to practice in New York State as well as the United States District Courts for the Southern and Eastern Districts of New York.
Reflecting on joining the firm, John said:
“It’s been an extraordinary experience so far. I have worked on a wide range of interesting matters, including on behalf of the USTA, the Estate of Ernest Hemingway, the United States Equestrian Federation, and other high-profile organizations. At Denlea & Carton, I have been given opportunities to tackle new types and phases of litigation, and I learn something new every day. The culture here is incredibly inclusive and supportive. I’m proud to be a member of the team.”
Chris Gallagher joins the firm with extensive experience in complex commercial litigation, investigations, and white-collar matters, representing clients in state and federal courts through all phases of litigation, including pleadings, motion practice, and discovery.
Chris previously spent more than 14 years at a major national law firm, where he focused on investigations and complex commercial litigation. During that time, he played a significant role in the investigation and prosecution of matters arising from the Bernard L. Madoff Investment Securities fraud, one of the most consequential financial fraud cases in U.S. history.
Chris graduated from Fordham University where he earned both a Bachelor of Arts in English and his J.D. While attending law school, he was a member of the Brendan Moore Trial Advocacy Team.
He is admitted to the New York State Bar and to practice before the United States District Courts for the Southern and Eastern Districts of New York.
Chris is a member of the New York State Bar Association, New York City Bar Association, and the Fordham Law School Alumni Association. He also serves as a Board Member of the Community Fund of Darien, a nonprofit enterprise supporting essential social service organizations that provide food, housing, healthcare, education, job training, and youth development throughout Fairfield County, Connecticut.
“Upon joining Denlea & Carton, I was immediately thrown into the deep end, and I’ve rediscovered the excitement of being a litigator,” Chris said. “After almost a decade and a half at a large Manhattan firm, here I feel I can make a genuine difference for my clients. I’ve been developing a personal rapport with my clients and immersing myself in their businesses, and I feel a substantive responsibility to advance their interests. It’s great to work in a truly client-driven, collaborative atmosphere.”
The addition of Kane and Gallagher reflects Denlea & Carton’s continued investment in expanding its litigation bench with attorneys who have deep experience in complex disputes and investigations to serve our elite clientele.
After delivering opening statements to a rapt Westchester jury, Jim Denlea and Chris Dennis successfully settled a medical malpractice case for $1,000,000. Our client, the victim of surgical malpractice committed by a prominent Hudson Valley surgeon, sustained life-altering damages when the defendant surgeon attempted a procedure that was not recognized in surgical practice, as within any accepted standard of care. While no amount of money can ever make up for the physical and emotional pain and suffering experienced by our client, we were delighted to help hold her physician accountable, and to recover a significant sum to redress her injuries.
Jim Denlea and Craig Cepler recently settled a wrongful termination action on extremely favorable economic terms. Jim and Craig were able to demonstrate that our client’s former employer had ulterior motives for withholding payment of vested commissions to him. The matter was settled just prior to the start of an evidentiary hearing, and results in a significant recovery for the client as he prepares to pursue his next employment opportunity.
The Firm filed a motion to dismiss an ADA website accessibility case brought against its longtime client, the United States Tennis Association, by a serial litigant. The lawsuit was recently reported in Bloomberg Law, as reflected in the attached article. The firm is privileged to be the USTA’s litigation counsel. Jeff Carton and Steve Schoenfeld are leading the Firm’s defense. Click here to read more.
