Brown v. Cosby

In Brown v. Cosby (E.D.Pa. 1977) 433 F. Supp. 1331, 1342, which applied California law, the plaintiff alleged defendants had agreed to pay him a " 'fair share' " of the profits earned from the commercial exploitation of certain characters they had developed. The plaintiff characterized the contract as a "continuing one, . . . analogous to an installment contract." ( Id. at p. 1337.) The Brown court disagreed, reasoning: "In the instant case the contract did not provide a specific time when payments were due. The contract was not an installment contract, at least in the sense that one party's performance consisted primarily of making regular periodic payments." ( Id. at p. 1338.) Thus, the court rejected the plaintiff's contention the running of the statute of limitations commenced every time the defendants failed to pay plaintiff a " 'fair share' " of the profits. ( Id. at p. 1342.) Instead, the court ruled: "At the time defendants first failed to account to plaintiff for his 'fair share' of profits . . .,plaintiff had a true cause of action" and the limitations period began to run. (Ibid.)