By Jacqueline Sudano
A Carlsbad, Ca. married couple (Scott and Shana Sepkovic) doing business as Crown Athlete Management Group, Inc. is being sued in the Superior Court of California in San Diego for illegally representing action sports athletes in violation of California state law.
In the lawsuit brought by law firm Callahan & Blaine on behalf of Pro Circuit Racing, Inc., the plaintiff action sports corporation alleges that Crown AMG was in violation of the Miller-Ayala Athlete Agents Act when it entered into a contractual representation agreement with Pro Circuit, and continued to represent Pro Circuit while in violation of the Act. One of the sponsorship deals Crown AMG secured for Pro Circuit was with Hanson Beverage Company, the producer of Monster Energy Drink.
The lawsuit comes as a result of Crown AMG demanding additional commissions from Pro Circuit on old sponsorship deals, according to Callahan & Blaine.
In its complaint, the plaintiff sports corporation alleges three causes of action: (1) violation of the Miller-Ayala Athlete Agents Act (Business & Professions Code §18895, et seq.); (2) rescission of written contract; and (3) unfair business practices. Pro Circuit’s prayer for relief totals $440,000, which it claims was the amount of damages incurred in commissions improperly received by Crown AMG.
Court documents allege that Crown AMG did file the necessary paperwork with the California Secretary of State in 2004, in order to comply with the Miller-Ayala Athlete Agents Act, but the paperwork was incomplete, and in some places, false and misleading.
The Act requires that any represented entity must be listed on the filing with the state before representation may begin, and any amendments must be filed within seven days of any change. Pro Circuit points out that it was never listed on Crown AMG’s filing. As the Act states, any agreement and contract entered into by an agent who has not properly filed is rendered unenforceable. Additionally, the statute provides for a refund of all commissions paid to the agent, as well as recovery of attorneys’ fees, costs, and punitive damages.
In its third claim for unfair business practices, Pro Circuit alleges that Crown AMG used unlawful, unfair, and/or fraudulent business acts or practices in dealing with Pro Circuit. Pro Circuit alleges that Crown AMG held itself out as a legitimate, registered California sports agent, and stated so in its representation agreement. In the sponsorship procurement contract between the two entities filed with the court, it states: “This athlete agent…has current public disclosure information on file with the California Secretary of State as required by the Miller-Ayala Athlete Agents Act…”
Daniele J. Callahan, of Callahan and Blaine, counsel for Pro Circuit, weighed in on the importance of the lawsuit. “It is unfortunate that some sports agents think they can get rich by preying on these action sports athletes in violation of the law. The sports agent law is in place to protect the athletes in those situations. I anticipate that other action sports athletes who unknowingly paid commissions to Crown AMG and Scott Sepkovic that they were not entitled to receive will likely be seeking their refunds as well.”
Sudano is a graduate of the University of Texas at Austin School of Law
