By Edvard Pettersson
Feb. 28 (Bloomberg) -- Callaway Golf Co., the maker of Big Bertha and Top-Flite golf equipment, sued the Screen Actors Guild over payments made to guild health and pension plans for golf professionals who appeared in television commercials.
The company, based in Carlsbad, California, seeks a court ruling that it isn't liable for the contributions because the golf pros are independent contractors. The guild may try to collect additional payments through a breach-of-contract lawsuit, Callaway said.
``Contributions to the pension and health plan of a labor union can only be made on behalf of `employees,''' Callaway said in a complaint filed yesterday in San Diego federal court. ``The endorsement agreements under which the golf professionals contract with Callaway Golf expressly state that they are independent contractors.''
Through its advertising agency, Callaway made contributions to the guild plans in ``the mistaken belief that it had an obligation to do so,'' the company said. The guild claims that Callaway made insufficient payments for commercials made from 1999 through 2002, according to the complaint.
Golf pros who have appeared in Callaway commercials include Phil Mickelson, the reigning Masters Tournament champion, Charles Howell III and Annika Sorenstam. Callaway has paid the guild's plans what was required under the agreements with the golfers, spokeswoman Michele Szynal said in an interview.
Screen Actors Guilds spokeswoman Pamela Greenwalt had no immediate comment on the lawsuit.
Shares of Callaway fell 21 cents to $15.08 in New York Stock Exchange composite trading. They have fallen 8.6 percent in the past year, valuing the company at $1.1 billion.
The case is Callaway Golf Co. et al v. Screen Actors Guild Inc. et al, U.S. District Court, Southern District of California (San Diego), 07-373.
To contact the reporter on this story: Edvard Pettersson in Los Angeles at epettersson@bloomberg.net.
Last Updated: February 28, 2007 17:14 EST
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