Derek Hay, founder of LA Direct Models, has been ordered by a California court to pay more than $400,000 in attorney’s fees and costs to his former models following a long-running legal battle over violations of the Talent Agencies Act.

According to a ruling issued by Judge Gail Killefer of the Los Angeles Superior Court, Hay must pay a total of $402,158.25 in fees and costs after years of litigation that began in 2018.

In the original Labor Commissioner’s decision, hearing officer Patricia Salazar found that Hay violated state law by unlawfully withholding commission payments from performers. That ruling awarded the five models $103,264 in attorney’s fees and $3,401 in costs.

Yes, you read that right, the girls only got awarded $3,401 – their lawyer got everything else.

On appeal, the Superior Court added another $283,860.90 in attorney’s fees and $11,632.35 in costs, as allowed under California Labor Code §1700.25(e).

No multiplier or prejudgment interest was applied.

Attorney Allan Gelbard, who represented the models, said the ruling amends the original judgment to reflect the newly granted fees and costs.

“The original judgment is amended by the minute order granting the fees and costs,” Gelbard confirmed in an email.

Hay’s attorney, Richard Freeman, acknowledged the outcome but noted that the award was lower than what Gelbard initially sought.

“We are disappointed, but note that the amount granted is far less than what Attorney Gelbard sought,” Freeman said, referring to Gelbard’s earlier request of more than $560,000 in fees.

The case against Derek Hay and LA Direct Models dates back to 2018, when multiple performers accused him of operating without a proper license and withholding commissions in violation of the Talent Agencies Act. The Labor Commissioner’s ruling marked one of the most significant legal victories for performers against an adult talent agency in recent years.

With this latest order, the performers’ total recovery now exceeds $400,000 in legal costs alone, a significant financial penalty that underscores the risks faced by agencies operating outside the boundaries of California’s talent law.