Ehrlich v. Diggs
United States District Court for the Eastern District of New York
169 F.Supp.2d 124 (2001)
David Ehrlich (plaintiff), a California resident, orally agreed to manage the rap group Gravediggaz for 15% of gross entertainment earnings tied to work arising during his management, terminable at will by either side; he later helped the group land a recording contract that included an option for member Robert Diggs (defendant), a New York resident, to sign as a solo artist, which Diggs eventually did. Ehrlich sued Diggs for commissions from his group work, solo career, production work, and a later group; Diggs moved to dismiss or for summary judgment, arguing the oral agreement was barred by the statute of frauds since it contemplated earnings potentially extending beyond a year.
Whether an oral agreement terminable at will by either party violates the statute of frauds where it obligates a party to pay commissions on earnings that may commence or arise beyond one year of the agreement's making.