Return to main Advice page

Legal Eagle

Contracts

Q: Employers cancelling contracts - can I sue?

A performer friend was dropped from a well-known artist's nationwide tour just days before it was due to begin, because the headline act decided they wanted to do the entire show solo. To my knowledge the star has never opted to do this previously, and my friend had a contract. Could he sue for compensation, even assuming he has the financial means?

A: As in all such cases, the answer must depend on the terms of your friend's contract. If, for example, he was engaged on the specific condition that the other contracting party had the option to cancel your friend's contract if the headline act were to decide to do the entire show solo, then clearly he would have no cause for complaint.

Likewise, if there was some other contingency which was not fulfilled and on which the engagement was conditional. Subject to this, if there was a firm commitment by the other contracting party for your friend to perform in the production, then your friend would have a good cause of action for cancellation of his contract.

He would, however, need to show the extent of his financial loss resulting from such cancellation, and he would have to give credit against his claim for any earnings from any other work done during the relevant contract period which he would not have been able to obtain if his contract had not been cancelled. He would also have a duty to mitigate his loss by using reasonable endeavours to obtain replacement work of the same nature throughout the relevant period.

Something may turn on the identity of the other contracting party. It is not clear from your question whether your friend was engaged by the headline act concerned or by a third party promoter.

In the latter event, if the headline act was aware that you had been engaged as a supporting artist but nevertheless insisted on the promoter dropping you from the tour, you might well have a claim against the headline act as a co-defendant for inducing the promoter to break his contract with you.

First published August 2000