Judge Awards Plaintiffs Over $400K in Attorneys Fees in Derek Hay Civil Case

Judge Awards Plaintiffs Over $400K in Attorneys Fees in Derek Hay Civil Case

LOS ANGELES — California Superior Court Judge Gail Killefer has awarded former clients of LA Direct Models over $400,000 in attorneys fees and court costs, to be paid by agency founder Derek Hay.

The case dates back to a 2018 complaint by four performers then represented by the agency, alleging numerous improprieties, including the coercion of sexual acts under threat of having their careers destroyed if they didn't comply. After a fifth performer came forward, attorney Allan Gelbard, representing the five models, filed a petition with the State Labor Commission of California to determine whether Hay had violated several sections of the California Talent Agencies Act.

After a lengthy process that included multiple hearings, California Labor Commissioner Patricia Salazar found in favor of the models on seven violations of the act. In subsequent litigation, the models were awarded $103,264 in attorneys fees and $3,401 in costs. 

Following an appeal of the case, Killefer last month awarded the models an additional $283,860.90 in attorneys' fees and $11,632.35 in costs, bringing the total amount to $402,158.25.

Gelbard, who had initially asked for $560,000, emphasized that while he was satisfied with the ruling, the financial considerations were not his main motivation.

"As I told the court in our last hearing, this case was never about the money to me," he told XBIZ. "It was about protecting my clients, and establishing that all adult industry performers have a right to be treated fairly by their respective agents.

"Both the labor commissioner and the trial court found that Mr. Hay’s unlawful conduct was willful," Gelbard notes. "He was ordered to disgorge all funds he earned from my clients and pay their attorney’s fees and costs. He no longer has a California Talent Agency license, and he is now a convicted felon. Finally, the 'booking fees' kickback scheme he employed has been found to be a breach of an agent’s fiduciary duty to his client as a matter of law. As such, I am satisfied with the overall outcome of this case."

In August 2024, Hay was sentenced to nine months in county jail and a further two years' probation after pleading guilty to one charge of conspiracy to commit pandering and one charge of perjury stemming from the complaints. 

Hay's lawyer, Richard Freeman, told XBIZ that while he appreciated that the full $560,000 wasn't awarded, he had hoped the amount would have been further reduced. He added that he believes there is still room for the amount to come down.

"Right now, it's an interim ruling, and doesn't take effect until there's a final order signed by the judge and filed with the court," he said. "I don't consider the ruling to be a final formal order, or have any legally binding effect."

Click here to read XBIZ's extensive coverage of the case.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Segpay Partners With Corey Silverstein for Legal Services

Segpay has partnered with adult industry attorney Corey D. Silverstein for specialized legal compliance and policy support for its merchant network.

AEBN Reveals Kasey Kei as Top Trans Star for Q2 of 2026

AEBN has named its top trans stars for the second quarter of 2026, with Kasey Kei landing atop the leaderboard.

Missouri Governor Signs Bill Making AV Regulations State Law

Missouri Governor Mike Kehoe signed a bill into law on Thursday requiring adult websites to age-verify users in the state, finalizing a legislative “stamp of approval” for AV rules after Missouri’s attorney general unilaterally imposed similar regulations last year.

Utherverse Launches 'Adult Game Fest' Virtual Convention

Virtual reality and metaverse technology company Utherverse is launching its inaugural Adult Game Fest convention and trade show, taking place Sept. 24-26.

Ofcom Fines Fapello $845,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 630,000 pounds (about $845,000) against adult website fapello.com for failing to comply with provisions of the Online Safety Act.

KiwiSourcing Joins Pineapple Support as Sponsor

Outsourcing and consulting firm KiwiSourcing has joined the ranks of over 70 adult businesses and organizations committing funds and resources to Pineapple Support.

AdultHTML Introduces AI-First Development Services

AdultHTML has introduced an AI-first development service, giving clients access to experienced software developers who use AI to streamline software development.

Texas Court Orders Adult Site Domain Locked for AV Violations

A district court in Texas has issued a writ requiring domain registry Verisign to “lock” an adult website’s domain over noncompliance with the state’s age verification law.

Adult Web Hosting Service 'QloudHost' Launches

QloudHost, a new web hosting service for adult websites, has launched.

Peter Hooke Launches New Paysite

Peter Hooke has launched an official website through PAYSITE.

Show More