The Coogan Law was enacted in 1938 [now Family Code section 6750 et seq.] in response to the childhood star Jackie Coogan’s plight. Even though he earned millions as a child, Coogan was surprised to find out that when he reached adulthood that he was flat broke, because his mother and stepfather spent all his money….legally. The Coogan Law provides that for a contract involving a minor rendering artistic or creative services, the minor’s employer must set aside 15 percent “of the minor’s gross earnings” under the contract “in an account or other savings plan, and preserved for the benefit of the minor.” The funds are not supposed to be removed without court approval. The plaintiffs in this case are the parents or guardians of minors who have performed artistic or creative services. They allege Bank of America made withdrawals from the childrens’ Coogan accounts for monthly service fees without court approval. The trial court sustained defendant’s demurrer without leave to amend. The appellate court reversed, stating: “Such a debit, without court approval, is a prohibited withdrawal under the applicable state statute, and that state law prohibition on a debit by a national bank is not preempted by federal law.” (Phillips v. Bank of America, N.A. (April 27, 2015) 236 Cal.App.4th 217 [186 Cal.Rptr.3d 434].)
