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.