Terrence Howard Sues CAA Over ‘Empire’ Salary
The actor takes issue with the agency urging him to accept talent fees less than what he claims he should have gotten, which allegedly benefited other clients CAA represented. "Discovery will show that this was racism," said Carlos Moore, a lawyer representing the actor.
December 8, 2023
Terrence Howard is suing
CAA for an alleged conflict of interest in the agency’s dealings over his compensation on
Empire.
In the lawsuit, filed in Los Angeles Superior Court on Friday, Howard alleges his agents who packaged the deal with Fox prioritized the interests of themselves and the show’s producers, which it also represented, by inducing him to take below-market salaries over his six-season run starring in the series. CAA declined to comment.
“I trusted CAA to look after me, and they looked after themselves,” Howard said
James Bryant, a lawyer representing Howard, takes issue with packaging fees, in which agents are paid directly by a studio for attaching actors or a director to a writer’s pitch. “Over the last several years, agencies have become much more powerful and found a much more lucrative way of making money,” he said. “It’s by being the packaging agent, where you represent actors, producers, production companies and your own financial interest. That’s where that fiduciary duty begins to break down. That’s why we’re here today.”
In addition to Howard, CAA represented series co-creators Lee Daniels and Danny Strong, as well as production company Imagine Entertainment.
According to Bryant, the suit alleges that Howard was provided misleading information over salaries of similarly situated actors. When he asked what others at his level of fame were being compensated, his agents allegedly gave him faulty comparisons when he should’ve been getting paid on the level of Kevin Spacey in
House of Cards or Jon Hamm in
Mad Men.
The complaint states, “Not only did it become abundantly clear that his agents led him on a path to rely on information that was misleading, he discovered that this was the result of the fact that CAA was not acting in his best interest, but in the in interest of their own financial benefit as well as the interest of the Production Companies and the producers, Daniels and Strong. Under normal circumstances, had CAA not been the packaging agent, and had CAA not been concurrently representing the Production Companies, where their sole financial interest would have been the 10% fee from the compensation received by Howard, they would have most certainly fought for Howard in a manner that most producers are accustomed to seeing CAA agents engage in.”
Asked about his pay, Howard said his deal afforded him $325,000 per episode “at the height of what I was being paid” in season six. He added, “I was never given a producer credit even though I rewrote most of the scenes and acted in the capacity of producer.”
The suit also claims that there was a racial component to the agency’s alleged refusal to negotiate in the best interest of Howard, who says he was underpaid by as much as 50 percent compared to top actors in hit series.
“Discovery will show that this was racism,” said Carlos Moore, a lawyer representing the actor. “You won’t find in discovery that a white actor — Oscar-nominated, Golden Globe-nominated — was treated like that.”
Bryant stressed, “CAA simply told Howard, ‘We’re not going to take the 10 percent agency fee this time because we packaged things together.’ In reality, it was a terrible thing because they had no incentive to fight for this man when he demanded to have his salary negotiated comparable to every other lead white actor out there.”
Howard brings claims for breach of fiduciary duty, among others for fraud. He’s represented by James Bryant and Brian Dunn of The Cochran Firm, as well as solo attorney Carlos Moore. They urged other actors who believe they were similarly misrepresented by CAA to come forward to them.
This isn’t the first suit that Howard has filed over his compensation on
Empire, one of the most watched shows on the network during its run. In 2020, he sued 20th Century Studios over allegedly unpaid royalty fees for use of his name and likeness on merchandise. The complaint claimed breach of contract and demanded an accounting.
He also played the role of defendant in another suit from his former talent management firm accusing him of breaching an oral contract by failing to pay post-termination commissions. Authentic Talent and Literary Management claimed that they were entitled to 10 percent of all gross revenue he received from employment in Hollywood during the time they represented him. Notably, this included
Empire