Wyler Summit Partnership v. Turner Broadcasting System, Inc.

Director William Wyler's 1958 contract with MGM entitled him to percentage compensation from the film's receipts, capped at $50,000 per year in installments — a term inserted at Wyler's own request to manage his income tax exposure. The film earned Wyler and his heirs (plaintiffs) $3.3 million total, of which only $1.8 million had been paid; MGM's successor Turner (defendant) retained the remaining $1.5 million under the installment cap, earning interest on the deferred amount. When the heirs proposed waiving the installment provision to receive the balance sooner, Turner refused, and the heirs sued for unjust enrichment, breach of contract, and breach of the duty of good faith. The trial court dismissed, ruling as a matter of law both that waiver required an express contractual provision and that the installment cap benefited both parties, not Wyler alone.

Whether a contracting party may waive conditions placed in a contract solely for that party's benefit.