[Update, 7/7/20, 8:30 a.m.: Added Richard Freeman's comment on pending cases.]
LOS ANGELES — LA Direct agent Derek Hay filed an appeal with the Los Angeles County Superior Court last month requesting a “Trial De Novo” concerning the issues brought before the Labor Commission in 2018 by five of his former models, initially identified only as "Jane Doe Nos. 1-5," and which resulted in a June 10 decision by a Commissioner largely against Hay.
Hay also announced through the appeals document, filed on June 18, that he will post an “undertaking” (appeals bond) for twice the amount of the nearly $25,000 sum awarded by the Labor Commissioner to the models collectively, which will stay the enforcement of the award during the appeal/Trial De Novo process.
According to Hay's attorney, the Trial De Novo has been granted and is been assigned to a Los Angeles judge.
The Trial De Novo is a common appeals strategy in civil and small claim cases where one of the parties continues to fight a case after a ruling against them. The Trial De Novo request asks to set aside the decisions from a lower court — in this case, the proceedings of the Labor Commission — and re-try the case (“de novo” means “anew” in Latin).
According to the rules of the Trial De Novo, the on-record transcript of testimonies and cross-examination from the original trial — or Labor Commission proceedings — can be entered into the record of the new trial.
Hay is asking for a Trial De Novo on the issues raised by the Jane Does in their complaint and a judgment against them, including costs and attorney fees.
Last June 10, California Labor Commissioner Patricia Salazar issued a 50-page decision on the original complaint against Hay and LA Direct. The commissioner's decision found against Hay and LA Direct on seven of ten issues, including multiple breaches of contract, and held Hay "legally responsible in his individual capacity and/or as owner of Direct Models for any violations committed.”
The Attorneys Speak
Hay’s attorney Richard Freeman told XBIZ that his client and the agency “have filed the notice of appeal from the decision of the Labor Commissioner. The result of filing the appeal is that the case will start anew in the Los Angeles County Superior Court and it will proceed as any other lawsuit involving a dispute between parties.”
“It has been been assigned to a judge, Judge Richard J. Burdge, who will oversee the procedures and will at some point assign a jury trial date for the issues in the case,” Freeman continued. “Before the case is assigned to trial, there will be an opportunity for Direct Models to obtain documents from and records about all of the Jane Does and they will have an opportunity to take the depositions of those Jane Does and other witnesses.”
“It really is a brand-new lawsuit and the decision of the Labor Commissioner plays no role, it has no effect whatsoever on anything that happens.”
Allan Gelbard, the attorney for the Jane Does, told XBIZ he believes his clients “will actually do even better at our Trial De Novo."
“While the hearing officer’s decision was clearly in our favor, there were several issues I believe she missed that will permit my clients even greater relief,” Gelbard added. “In addition, several of the issues are purely legal and I believe my clients will prevail on them following a motion for summary adjudication.”
Gelbard also referred to two separate pending cases also involving Hay — California criminal charges against him, for which he is free on bail, and a Labor commission proceeding concerning LA Direct’s license.
After the initial publication of this piece, Hay's attorney Richard Freeman told XBIZ that his client "has denied the two criminal allegations against him, based on the claims of the Jane Does, implicitly rejecting the claims of two of the other Jane Does" and that "the Licensing Case has yet to be re-set for a Hearing after a February Hearing Date at the Office of Administrative Hearings was continued [postponed]."
Read XBIZ's coverage of last month's Labor Commission ruling here.
