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Courthouse Steps

By ALM Staff | Law Journal Newsletters |
August 01, 2003

CASE CAPTION: Alan Ladd Jr., Jay Kanter, L-K Producers Corp., Ketram Corp. and Kanter Corp. v. Warner Brothers Pictures Inc and AOL Time Warner, L. A. Superior Court BC300043.

CAUSES OF ACTION: Among other things: fraud; breach of contract; breach of the covenant of good faith and fair dealing; breach of fiduciary duty; unfair business practices in violation of Calif. Business and Profession Code Sec. 17200 et seq.); and unlawful tying agreement in violation of Calif. Business and Professions Code Sec. 16720 et seq.

COMPLAINT ALLEGATIONS: The plaintiffs produced and licensed films to Warner Brothers. The film studio has unlawfully distributed various films in packages to broadcasters, rather than offering them for individual sale or license. The packaging or tying arrangements generated millions for Warner Brothers and allowed it to manipulate the value allocated to each film to improperly direct revenues away from films for which the film studio had an obligation to pay producers. An audit on behalf of the plaintiffs revealed numerous errors, including overstatement of interest on negative costs, inaccurate reporting of video gross receipts and improper allocation of license fees in package sales.

RELIEF SOUGHT: At least $2.5 million, a complete accounting and unspecified punitive damages.

PLAINTIFFS' COUNSEL: John M. Gatti and Matthew R. Belloni of Santa Monica, CA's Alschuler Grossman Stein & Kahan (310-907-1000).


CASE CAPTION: Diane Lane, DeLane Productions Inc. v. Intermedia Film Equities USA Inc., Intermedia Film Equities Ltd. and IM International Media

CAUSES OF ACTION: Breach of contract; intentional misrepresentation; negligent misrepresentation; promissory fraud; and fraudulent concealment.

COMPLAINT ALLEGATIONS: IM International is a German company that is the parent of Intermedia Film Equities. In February 2003, Jon Gumpert, vice chairman head of motion picture operations for Intermedia made “numerous” false and fraudulent representations to Stan Coleman, Lane's attorney, during negotiations for Lane to star in a film called “Me Again.” The false statements included saying that all financing for the film had been obtained and that they had a binding agreement for Bruce Willis to appear in the film, too. Coleman concluded an agreement for Lane under which she was supposed to get $3.5 million on a pay-or-play basis, plus 5% of the film's gross receipts beyond a certain point. As a result, Lane declined other opportunities. Intermedia did not have all the financing and, as a result, Willis was not bound to his contract. Intermedia has resorted to various deceptive machinations to avoid its obligations, including trying to persuade Lane's representatives that the film had been assigned to another studio and threatening litigation. Lane got some payments but is still owed approximately $2.7 million.

PLAINTIFFS' COUNSEL: Michael Bergman, Anjani Mandavia and Melissa Dalziel of Beverly Hills' Weissmann, Wolff, Bergman, Coleman, Grodin & Evall (310-858-7888).


CASE CAPTION: Langley Productions Inc. v. Sandra D. Lavel

CAUSES OF ACTION: Breach of contract; unjust enrichment; breach of fiduciary duty; conversion; and constructive trust.

COMPLAINT ALLEGATIONS: Defen- dant Lavel, for more than 10 years the bookkeeper and controller for the plaintiff, known for producing the “Cops” TV series, embezzled more than $1 million dollars from the plaintiff. Lavel was subsequently arrested, tried and convicted in federal court in Illinois. Despite Lavel's guilty plea and a signed agreement to repay her ill-gotten gains, the plaintiff has received nothing. Lavel is currently incarcerated in a federal correctional institution in Victorville, CA.

RELIEF SOUGHT: $1,060,540, plus interest and punitive damages; an injunction against the transfer or disposition of all assets acquired with the plaintiff's funds.

PLAINTIFF'S COUNSEL: David E. Fink, Carl R. Benedetti and Jennifer B. Hodulik of Los Angeles' White, O'Connor, Curry & Avanzado (310-712-6100).


CASE CAPTION: Robert J. Wagner, individually and as trustee of Natasha's Trust U/T/W Natalie Wood and as trustee of Courtney's Trust U/T/W Natalie Wood v. Columbia Pictures Industries Inc., Sony Pictures Television Inc., Columbia TriStar Television Inc. and Sony Pictures Entertainment Inc.

CAUSES OF ACTION: Breach of written contract; breach of covenant of good faith and fair dealing; unjust enrichment; and declaratory relief.

COMPLAINT ALLEGATIONS: The plaintiff trusts are successors-in-interests to the rights belonging to actress Natalie Wood. In 1973, Plaintiff Wagner and Wood entered into an agreement with Spelling-Goldberg Productions to appear in a TV movie entitled “Love Song,” later renamed “The Affair.” As part of the agreement, Wagner and Wood would jointly submit up to five ideas to ABC for pilots for the 1974-75 TV season. If any went forward, the profits were to be shared equally. Wagner and Wood submitted the idea for “Charlie's Angels.” Spelling-Goldberg was sold to Columbia around 1982. The plaintiffs are entitled to half the profits from the two “Charlie's Angels” movies. The defendants have refused to account for monies received or to pay the plaintiffs.

RELIEF SOUGHT: Unspecified damages and an accounting.

PLAINTIFFS' COUNSEL: Samuel R. Pryor, Sally S. Liu and Jonathan E. Stern of Santa Monica, CA's Alschuler Grossman Stein & Kahan (310-907-1000).

CASE CAPTION: Alan Ladd Jr., Jay Kanter, L-K Producers Corp., Ketram Corp. and Kanter Corp. v. Warner Brothers Pictures Inc and AOL Time Warner, L. A. Superior Court BC300043.

CAUSES OF ACTION: Among other things: fraud; breach of contract; breach of the covenant of good faith and fair dealing; breach of fiduciary duty; unfair business practices in violation of Calif. Business and Profession Code Sec. 17200 et seq.); and unlawful tying agreement in violation of Calif. Business and Professions Code Sec. 16720 et seq.

COMPLAINT ALLEGATIONS: The plaintiffs produced and licensed films to Warner Brothers. The film studio has unlawfully distributed various films in packages to broadcasters, rather than offering them for individual sale or license. The packaging or tying arrangements generated millions for Warner Brothers and allowed it to manipulate the value allocated to each film to improperly direct revenues away from films for which the film studio had an obligation to pay producers. An audit on behalf of the plaintiffs revealed numerous errors, including overstatement of interest on negative costs, inaccurate reporting of video gross receipts and improper allocation of license fees in package sales.

RELIEF SOUGHT: At least $2.5 million, a complete accounting and unspecified punitive damages.

PLAINTIFFS' COUNSEL: John M. Gatti and Matthew R. Belloni of Santa Monica, CA's Alschuler Grossman Stein & Kahan (310-907-1000).


CASE CAPTION: Diane Lane, DeLane Productions Inc. v. Intermedia Film Equities USA Inc., Intermedia Film Equities Ltd. and IM International Media

CAUSES OF ACTION: Breach of contract; intentional misrepresentation; negligent misrepresentation; promissory fraud; and fraudulent concealment.

COMPLAINT ALLEGATIONS: IM International is a German company that is the parent of Intermedia Film Equities. In February 2003, Jon Gumpert, vice chairman head of motion picture operations for Intermedia made “numerous” false and fraudulent representations to Stan Coleman, Lane's attorney, during negotiations for Lane to star in a film called “Me Again.” The false statements included saying that all financing for the film had been obtained and that they had a binding agreement for Bruce Willis to appear in the film, too. Coleman concluded an agreement for Lane under which she was supposed to get $3.5 million on a pay-or-play basis, plus 5% of the film's gross receipts beyond a certain point. As a result, Lane declined other opportunities. Intermedia did not have all the financing and, as a result, Willis was not bound to his contract. Intermedia has resorted to various deceptive machinations to avoid its obligations, including trying to persuade Lane's representatives that the film had been assigned to another studio and threatening litigation. Lane got some payments but is still owed approximately $2.7 million.

PLAINTIFFS' COUNSEL: Michael Bergman, Anjani Mandavia and Melissa Dalziel of Beverly Hills' Weissmann, Wolff, Bergman, Coleman, Grodin & Evall (310-858-7888).


CASE CAPTION: Langley Productions Inc. v. Sandra D. Lavel

CAUSES OF ACTION: Breach of contract; unjust enrichment; breach of fiduciary duty; conversion; and constructive trust.

COMPLAINT ALLEGATIONS: Defen- dant Lavel, for more than 10 years the bookkeeper and controller for the plaintiff, known for producing the “Cops” TV series, embezzled more than $1 million dollars from the plaintiff. Lavel was subsequently arrested, tried and convicted in federal court in Illinois. Despite Lavel's guilty plea and a signed agreement to repay her ill-gotten gains, the plaintiff has received nothing. Lavel is currently incarcerated in a federal correctional institution in Victorville, CA.

RELIEF SOUGHT: $1,060,540, plus interest and punitive damages; an injunction against the transfer or disposition of all assets acquired with the plaintiff's funds.

PLAINTIFF'S COUNSEL: David E. Fink, Carl R. Benedetti and Jennifer B. Hodulik of Los Angeles' White, O'Connor, Curry & Avanzado (310-712-6100).


CASE CAPTION: Robert J. Wagner, individually and as trustee of Natasha's Trust U/T/W Natalie Wood and as trustee of Courtney's Trust U/T/W Natalie Wood v. Columbia Pictures Industries Inc., Sony Pictures Television Inc., Columbia TriStar Television Inc. and Sony Pictures Entertainment Inc.

CAUSES OF ACTION: Breach of written contract; breach of covenant of good faith and fair dealing; unjust enrichment; and declaratory relief.

COMPLAINT ALLEGATIONS: The plaintiff trusts are successors-in-interests to the rights belonging to actress Natalie Wood. In 1973, Plaintiff Wagner and Wood entered into an agreement with Spelling-Goldberg Productions to appear in a TV movie entitled “Love Song,” later renamed “The Affair.” As part of the agreement, Wagner and Wood would jointly submit up to five ideas to ABC for pilots for the 1974-75 TV season. If any went forward, the profits were to be shared equally. Wagner and Wood submitted the idea for “Charlie's Angels.” Spelling-Goldberg was sold to Columbia around 1982. The plaintiffs are entitled to half the profits from the two “Charlie's Angels” movies. The defendants have refused to account for monies received or to pay the plaintiffs.

RELIEF SOUGHT: Unspecified damages and an accounting.

PLAINTIFFS' COUNSEL: Samuel R. Pryor, Sally S. Liu and Jonathan E. Stern of Santa Monica, CA's Alschuler Grossman Stein & Kahan (310-907-1000).

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