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Courthouse Steps
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.
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