Creditor can’t seize ‘Oscar’ statue to satisfy a debt, says Court of Appeals

Oscar winner shares ownership with The Academy

A ruling issued last week by the Division Two of the California Court of Appeals said a creditor could not seize an Oscar statuette by a recipient of the prestigious award because they do not retain exclusive ownership of the award.

The case involved David S. Ward, who won in 1974 for the screenplay The Sting. An opinion by Justice Elwood Liu upheld a ruling by Los Angeles Superior Court Judge Holly J. Fujie in favor of the Academy of Motion Pictures Arts and Science, who argued they retained ownership of the award.

Ward incurred a debt to Maria Duarte Juarez, who said she was owed back wages when she was employed as his housekeeper. Juarez sought to gain possession of the statue and auction it to satisfy the debt.

However, when an Oscar recipient takes possession of the statuette, they sign an agreement with the Academy of Motion Pictures Arts and Sciences.  That agreement said the Academy has the right to buy back the statuette for $10 by virtue of a right of first refusal.

In his opinion, Lui wrote, “As Ward’s creditor, Juarez is subject to the same restriction imposed by the Agreement and bylaws. Juarez had no greater rights than Ward.”