Ayala Law Our attorney Eion Oosterbaan secured a $598,000 jury verdict in favor of an online content creator in a Broward County, Florida, case involving an alleged breach of a social media management agreement, defamatory statements, and unauthorized commercial use of her name and likeness.
The case highlights the financial and legal risks creators can face when they entrust their businesses, online presence, and personal brands to third-party management companies.
When a Social Media Management Company Fails to Deliver
The creator entered into a contract with a management company that promised social media management, brand development, marketing strategy, and support for her social media accounts. In exchange, the creator agreed to pay the company a commission on her earnings and meet specified content-production requirements.
According to the claims in the lawsuit, the creator paid approximately $40,000 in commissions but did not receive the services promised under the agreement. She also incurred additional expenses to meet the contract’s content requirements.
After the business relationship ended, the dispute escalated. The lawsuit alleged that the management company published false statements about the creator online and used her name, image, and likeness in promotional content without her authorization. The creator sought damages for breach of contract, defamation, and unauthorized commercial use of her identity.
How the Jury Awarded $598,000 in Damages
Following a jury trial to determine damages, the court entered final judgment awarding the creator $598,000 across three claims:
$70,000 for breach of contract: This included $40,000 in commission payments for services not performed and $30,000 in out-of-pocket expenses associated with the contract’s content requirements.
$490,000 for defamation: The award included $390,000 for lost net earnings and $100,000 for harm to reputation, personal humiliation, and mental anguish and suffering.
$38,000 for unauthorized use of name, image, and likeness: This award addressed the commercial or advertising use of the creator’s identity without authorization.
The court’s final judgment also included prejudgment interest, with the amount continuing to accrue as specified in the judgment.
What Online Creators Should Know Before Signing a Management Contract
For content creators and other social media entrepreneurs, a management agreement can affect far more than marketing. It can determine how much revenue a company receives, what services it must provide, how a creator can end the relationship, and who controls the commercial use of the creator’s identity.
Before signing, creators should understand the services being promised, how commissions are calculated, what happens if the company fails to perform, and whether the agreement adequately protects their content, accounts, and personal brand.
If a management company fails to honor its contractual obligations or uses a creator’s identity without permission, those actions may raise legal issues that deserve careful review.
Protect Your Brand and Your Business
Your online presence is a business asset. The contracts you sign and the people you authorize to represent you can have a direct impact on your income, reputation, and future opportunities. Content Creator Content Creator Content Creator Content Creator Content Creator Content Creator Content Creator Content Creator
Ayala Law represents clients in business litigation, contract disputes, and claims involving commercial harm.
If you are an online creator dealing with a management company that has failed to deliver on its promises, damaged your reputation, or used your identity without authorization, please don’t hesitate to contact one of our experienced attorneys at 305-570-2208.
You can also contact our team directly at: [email protected]
Schedule a case evaluation online here.
[The opinions in this blog are not intended to be legal advice. You should consult with an attorney about the particulars of your case].
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