Court Dismisses Terrence Howard’s Lawsuit Over “Empire” Compensation

Los Angeles Superior Court Judge Cherol Nellon dismissed the lawsuit filed by actor Terrence Howard against Creative Artists Agency (CAA) in 2023. Howard alleged that CAA’s representation of both him and the series’ co-creators created a conflict of interest that led him to accept a below-market per-episode salary for his role as Lucious Lyon on Fox’s drama *Empire*. The court ruled that Howard failed to demonstrate a viable claim for damages because any increase in his compensation would have been paid to his loan-out company, Universal Bridges, rather than directly to him. The ruling was issued on July 31 after arguments were heard on July 22.

[Update] Terrence Howard Loses Legal Battle Claiming CAA Failed to Secure His Requested $750K ‘Empire’ Salary Hollywood ReporterNBC Los Angeles

Howard’s contract negotiations with Fox began in 2018 when CAA pushed for a renegotiation of his terms. He sought profit participation, promotional opportunities, and a higher per-episode fee comparable to deals secured by actors such as Kevin Spacey for *House of Cards* and Jon Hamm for *Mad Men*. Fox declined to reopen the deal, and a subsequent request in 2019 to raise his fee from $325,000 to $750,000 per episode was also rejected. Howard’s relationship with CAA soured as he claimed the agency failed to disclose that it also represented series co-creators Lee Daniels and Danny Strong, as well as production company Imagine Entertainment, creating a potential conflict under the industry’s packaging-fee model.

Hollywood Reporter

• Original per-episode salary: $325,000

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• Requested per-episode salary: $750,000 (rejected by Fox)

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• *Empire* pilot viewership: nearly 10 million viewers, Fox’s highest-rated debut in three years

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• Howard’s court declaration expressed that, had CAA disclosed the packaging conflicts, he would have sought independent advice and insisted on a written demand to Fox.

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• “Had CAA disclosed those facts when they mattered, I would have sought independent advice separate from CAA, required corrected compensation information, insisted on a written demand to Fox, and reconsidered whether CAA should continue advising me regarding Empire,” — Terrence Howard, the judge

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• “The immediate economic result of an increase in compensation would have been an increase in revenue to Universal Bridges only,” — Los Angeles Superior Court

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• “Fox rejected the $750,000-per-episode demand and stated it was not prepared to increase my compensation beyond $325,000 per episode,” — Terrence Howard, the judge

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• “Had I known before the meeting that CAA would not present or advocate its own proposed strategy directly to Fox, I would have insisted that CAA put that strategy in writing to Fox before Mira Howard (Howard's former wife) and I met with Fox or made any direct demand.” — Terrence Howard, the judge

NBC Los Angeles

The dismissal underscores the legal challenges actors face when alleging agency conflicts under the packaging-fee system, a practice where agencies receive commissions for bundling creative talent with producers. The ruling highlights that plaintiffs must demonstrate concrete, non-speculative damages to succeed, particularly when compensation is routed through a loan-out entity. The case may influence how talent agencies disclose packaging arrangements and manage potential conflicts of interest in future negotiations.

Hollywood Reporter