Courthouse Steps

CASE CAPTION: Michael Bolton and Mr. Bolton's Music Inc. v. TIG Insurance Co., L. A. Superior Court # BC297864.

CAUSES OF ACTION: Breach of contract, and breach of implied covenant of good faith and fair dealing.

COMPLAINT ALLEGATIONS: This action arises out of a claim for copyright infringement brought by the Isley Brothers' publisher over the song 'Love Is a Wonderful Thing,' co-authored by Bolton and Andy Goldmark. TIG insured Time-Warner Inc. and its subsidiaries, which included Warner Chappell Music Ltd., also a defendant in the copyright action. Bolton and Bolton Music were additional insureds. TIG agreed to defend the action but failed to inform Bolton of the potential and actual conflicts of interests in having one attorney represent different parties whose positions were not necessarily aligned. In addition, TIG rejected opportunities for a reasonable settlement despite losing on summary judgment. TIG did not inform Bolton that during a settlement conference, the judge informed the defendants that the case could be settled that day for between $600,000 and $800,000. The trial ultimately resulted in a verdict that was affirmed on appeal. Bolton was held personally liable for about $900,000, Sony (Bolton's record label) for $4.2 million and Warner Chappell (which had the publishing contract) for about $76,000. TIG has now sought to collect the entire amount from Bolton by instituting litigation against him in England and Connecticut, seeking more than $12 million. This came after TIG controlled the initial litigation to protect its own interests and paid the amounts attributable to Sony, which was not even TIG's insured.

RELIEF SOUGHT: Unspecified damages.

PLAINTIFFS' COUNSEL: Michael J. Bidart and Jeffrey Isaac Ehrlich of Claremont, CA's Shernoff Bidart & Darras (909-621-4935).

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CASE CAPTION: Marvel Characters Inc. v. Sony Electronics Inc., L. A. Superior Court # BC298157.

CAUSE OF ACTION: Intentional interference with contract.

COMPLAINT ALLEGATIONS: Marvel, under a Feb. 1999 agreement with Sony Pictures Entertainment (SPE), entered into a limited partnership to merchandise Spider-Man. Sony demanded that it alone would control merchandising in the consumer electronics market. The partnership, however, has not entered into a single licensing deal in that market. Marvel has already sued Sony Pictures for failing to license in the consumer electronics and other markets. This suit is for Sony Electronics allegedly interfering with the license agreement. SPE has been rejecting licensing requests from consumer electronics manufacturers and also refused to grant Marvel permission to enter into such licenses. The refusal results from Sony Electronics' intentional interference with the license agreement to protect it from unwanted competition in the consumer electronics business and to preserve its inflated retail pricing structure.

RELIEF SOUGHT: $10 million.

PLAINTIFF'S COUNSEL: Carole E. Handler and John Shaeffer of Los Angeles' O'Donnell & Shaeffer (213-532-2000).

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CASE CAPTION: Activision Inc. v. Viacom Consumer Products Inc.

and Viacom International Inc., L.A. Superior Court # BC298324.

CAUSE OF ACTION: Breach of contract.

COMPLAINT ALLEGATIONS: In 1998, Activision entered into a 10-year agreement with Viacom, which owns the Star Trek franchise. Activision got the exclusive right to develop and sell Star Trek video game products, as well as an express written commitment that Viacom would use its commercial best efforts to continue to exploit Star Trek over the 10-year period. But after releasing three Star Trek movies from 1994 to 1998, Viacom waited 4 years to release the next one and has no plans to make any new Star Trek films or TV series. Viacom's current Star Trek TV series is getting poor ratings and weak promotional support. Viacom also failed to provide information about the last Star Trek film, “Nemesis,” until shortly before its release, making it too late to develop a game tied to the movie. Activision has spent millions developing the games, and has paid more than $11 million in guaranteed royalties to Viacom as well as providing stock warrants that have been exercised for $10 million more.

RELIEF SOUGHT: Unspecified damages and a constructive trust on the warrants in Viacom's possession.

PLAINTIFF'S COUNSEL: Ronald L. Olson, Glenn D. Pomerantz, David M. Rosenzweig and Kate K. Anderson of Los Angeles' Munger, Tolles & Olson (213-683-9100).

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CASE CAPTION: MPH Entertainment Inc. v. Nia Vardalos, My Penzatta Inc., Home Box Office Inc.; Gold Circle Films LLC, The Playtone Co. and Big Wedding LLC, L. A. Superior Court # BC298387.

CAUSES OF ACTION: Declaratory relief, breach of third-party beneficiary contract; and breach of contract.

COMPLAINT ALLEGATIONS: In 1997, MPH produced “Men Seeking Women” in which actress Vardalos had a small part. She urged the MPH principals to read her film script “My Big Fat Greek Wedding.” They did and were the first to see the potential of producing it. MPH bought an option on the script and exercised it for $60,000 and agreed that Vardalos would star in it. After other parties became involved, MPH agreed to dilute its participation in the film to 3% of actual profits. MPH did not get its profits. In fact, in a recent accounting statement provided by Gold Circle and HBO, the film, which cost only $5 million to make and grossed more than $600 million, has supposedly lost more than $20 million.

RELIEF SOUGHT: At least $20 million and an accounting.

PLAINTIFF'S COUNSEL: Henry D. Gradstein and Bruce E. Van Dalsem of Los Angeles' Gradstein, Luskin & Van Dalsem (310) 571-1700).

 

CASE CAPTION: Marvel Characters Inc. v. Sony Electronics Inc., L. A. Superior Court # BC298157.

CAUSE OF ACTION: Intentional interference with contract.

COMPLAINT ALLEGATIONS: Marvel, under a Feb. 1999 agreement with Sony Pictures Entertainment (SPE), entered into a limited partnership to merchandise Spider-Man. Sony demanded that it alone would control merchandising in the consumer electronics market. The partnership, however, has not entered into a single licensing deal in that market. Marvel has already sued Sony Pictures for failing to license in the consumer electronics and other markets. This suit is for Sony Electronics allegedly interfering with the license agreement. SPE has been rejecting licensing requests from consumer electronics manufacturers and also refused to grant Marvel permission to enter into such licenses. The refusal results from Sony Electronics' intentional interference with the license agreement to protect it from unwanted competition in the consumer electronics business and to preserve its inflated retail pricing structure.

RELIEF SOUGHT: $10 million.

PLAINTIFF'S COUNSEL: Carole E. Handler and John Shaeffer of Los Angeles' O'Donnell & Shaeffer (213-532-2000).

CASE CAPTION: Activision Inc. v. Viacom Consumer Products Inc. and Viacom International Inc., L.A. Superior Court # BC298324.

CAUSE OF ACTION: Breach of contract.

COMPLAINT ALLEGATIONS: In 1998, Activision entered into a 10-year agreement with Viacom, which owns the Star Trek franchise. Activision got the exclusive right to develop and sell Star Trek video game products, as well as an express written commitment that Viacom would use its commercial best efforts to continue to exploit Star Trek over the 10-year period. But after releasing three Star Trek movies from 1994 to 1998, Viacom waited 4 years to release the next one and has no plans to make any new Star Trek films or TV series. Viacom's current Star Trek TV series is getting poor ratings and weak promotional support. Viacom also failed to provide information about the last Star Trek film, 'Nemesis,' until shortly before its release, making it too late to develop a game tied to the movie. Activision has spent millions developing the games, and has paid more than $11 million in guaranteed royalties to Viacom as well as providing stock warrants that have been exercised for $10 million more.

RELIEF SOUGHT: Unspecified damages and a constructive trust on the warrants in Viacom's possession.

PLAINTIFF'S COUNSEL: Ronald L. Olson, Glenn D. Pomerantz, David M. Rosenzweig and Kate K. Anderson of Los Angeles' Munger, Tolles & Olson (213-683-9100).

CASE CAPTION: MPH Entertainment Inc. v. Nia Vardalos, My Penzatta Inc., Home Box Office Inc.; Gold Circle Films LLC, The Playtone Co. and Big Wedding LLC, L. A. Superior Court # BC298387.

CAUSES OF ACTION: Declaratory relief, breach of third-party beneficiary contract; and breach of contract.

COMPLAINT ALLEGATIONS: In 1997, MPH produced 'Men Seeking Women' in which actress Vardalos had a small part. She urged the MPH principals to read her film script 'My Big Fat Greek Wedding.' They did and were the first to see the potential of producing it. MPH bought an option on the script and exercised it for $60,000 and agreed that Vardalos would star in it. After other parties became involved, MPH agreed to dilute its participation in the film to 3% of actual profits. MPH did not get its profits. In fact, in a recent accounting statement provided by Gold Circle and HBO, the film, which cost only $5 million to make and grossed more than $600 million, has supposedly lost more than $20 million.

RELIEF SOUGHT: At least $20 million and an accounting.

PLAINTIFF'S COUNSEL: Henry D. Gradstein and Bruce E. Van Dalsem of Los Angeles' Gradstein, Luskin & Van Dalsem (310) 571-1700).

CASE CAPTION: Michael Bolton and Mr. Bolton's Music Inc. v. TIG Insurance Co., L. A. Superior Court # BC297864.

CAUSES OF ACTION: Breach of contract, and breach of implied covenant of good faith and fair dealing.

COMPLAINT ALLEGATIONS: This action arises out of a claim for copyright infringement brought by the Isley Brothers' publisher over the song 'Love Is a Wonderful Thing,' co-authored by Bolton and Andy Goldmark. TIG insured Time-Warner Inc. and its subsidiaries, which included Warner Chappell Music Ltd., also a defendant in the copyright action. Bolton and Bolton Music were additional insureds. TIG agreed to defend the action but failed to inform Bolton of the potential and actual conflicts of interests in having one attorney represent different parties whose positions were not necessarily aligned. In addition, TIG rejected opportunities for a reasonable settlement despite losing on summary judgment. TIG did not inform Bolton that during a settlement conference, the judge informed the defendants that the case could be settled that day for between $600,000 and $800,000. The trial ultimately resulted in a verdict that was affirmed on appeal. Bolton was held personally liable for about $900,000, Sony (Bolton's record label) for $4.2 million and Warner Chappell (which had the publishing contract) for about $76,000. TIG has now sought to collect the entire amount from Bolton by instituting litigation against him in England and Connecticut, seeking more than $12 million. This came after TIG controlled the initial litigation to protect its own interests and paid the amounts attributable to Sony, which was not even TIG's insured.

RELIEF SOUGHT: Unspecified damages.

PLAINTIFFS' COUNSEL: Michael J. Bidart and Jeffrey Isaac Ehrlich of Claremont, CA's Shernoff Bidart & Darras (909-621-4935).

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CASE CAPTION: Marvel Characters Inc. v. Sony Electronics Inc., L. A. Superior Court # BC298157.

CAUSE OF ACTION: Intentional interference with contract.

COMPLAINT ALLEGATIONS: Marvel, under a Feb. 1999 agreement with Sony Pictures Entertainment (SPE), entered into a limited partnership to merchandise Spider-Man. Sony demanded that it alone would control merchandising in the consumer electronics market. The partnership, however, has not entered into a single licensing deal in that market. Marvel has already sued Sony Pictures for failing to license in the consumer electronics and other markets. This suit is for Sony Electronics allegedly interfering with the license agreement. SPE has been rejecting licensing requests from consumer electronics manufacturers and also refused to grant Marvel permission to enter into such licenses. The refusal results from Sony Electronics' intentional interference with the license agreement to protect it from unwanted competition in the consumer electronics business and to preserve its inflated retail pricing structure.

RELIEF SOUGHT: $10 million.

PLAINTIFF'S COUNSEL: Carole E. Handler and John Shaeffer of Los Angeles' O'Donnell & Shaeffer (213-532-2000).

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CASE CAPTION: Activision Inc. v. Viacom Consumer Products Inc.

and Viacom International Inc., L.A. Superior Court # BC298324.

CAUSE OF ACTION: Breach of contract.

COMPLAINT ALLEGATIONS: In 1998, Activision entered into a 10-year agreement with Viacom, which owns the Star Trek franchise. Activision got the exclusive right to develop and sell Star Trek video game products, as well as an express written commitment that Viacom would use its commercial best efforts to continue to exploit Star Trek over the 10-year period. But after releasing three Star Trek movies from 1994 to 1998, Viacom waited 4 years to release the next one and has no plans to make any new Star Trek films or TV series. Viacom's current Star Trek TV series is getting poor ratings and weak promotional support. Viacom also failed to provide information about the last Star Trek film, “Nemesis,” until shortly before its release, making it too late to develop a game tied to the movie. Activision has spent millions developing the games, and has paid more than $11 million in guaranteed royalties to Viacom as well as providing stock warrants that have been exercised for $10 million more.

RELIEF SOUGHT: Unspecified damages and a constructive trust on the warrants in Viacom's possession.

PLAINTIFF'S COUNSEL: Ronald L. Olson, Glenn D. Pomerantz, David M. Rosenzweig and Kate K. Anderson of Los Angeles' Munger, Tolles & Olson (213-683-9100).

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CASE CAPTION: MPH Entertainment Inc. v. Nia Vardalos, My Penzatta Inc., Home Box Office Inc.; Gold Circle Films LLC, The Playtone Co. and Big Wedding LLC, L. A. Superior Court # BC298387.

CAUSES OF ACTION: Declaratory relief, breach of third-party beneficiary contract; and breach of contract.

COMPLAINT ALLEGATIONS: In 1997, MPH produced “Men Seeking Women” in which actress Vardalos had a small part. She urged the MPH principals to read her film script “My Big Fat Greek Wedding.” They did and were the first to see the potential of producing it. MPH bought an option on the script and exercised it for $60,000 and agreed that Vardalos would star in it. After other parties became involved, MPH agreed to dilute its participation in the film to 3% of actual profits. MPH did not get its profits. In fact, in a recent accounting statement provided by Gold Circle and HBO, the film, which cost only $5 million to make and grossed more than $600 million, has supposedly lost more than $20 million.

RELIEF SOUGHT: At least $20 million and an accounting.

PLAINTIFF'S COUNSEL: Henry D. Gradstein and Bruce E. Van Dalsem of Los Angeles' Gradstein, Luskin & Van Dalsem (310) 571-1700).

 

CASE CAPTION: Marvel Characters Inc. v. Sony Electronics Inc., L. A. Superior Court # BC298157.

CAUSE OF ACTION: Intentional interference with contract.

COMPLAINT ALLEGATIONS: Marvel, under a Feb. 1999 agreement with Sony Pictures Entertainment (SPE), entered into a limited partnership to merchandise Spider-Man. Sony demanded that it alone would control merchandising in the consumer electronics market. The partnership, however, has not entered into a single licensing deal in that market. Marvel has already sued Sony Pictures for failing to license in the consumer electronics and other markets. This suit is for Sony Electronics allegedly interfering with the license agreement. SPE has been rejecting licensing requests from consumer electronics manufacturers and also refused to grant Marvel permission to enter into such licenses. The refusal results from Sony Electronics' intentional interference with the license agreement to protect it from unwanted competition in the consumer electronics business and to preserve its inflated retail pricing structure.

RELIEF SOUGHT: $10 million.

PLAINTIFF'S COUNSEL: Carole E. Handler and John Shaeffer of Los Angeles' O'Donnell & Shaeffer (213-532-2000).

CASE CAPTION: Activision Inc. v. Viacom Consumer Products Inc. and Viacom International Inc., L.A. Superior Court # BC298324.

CAUSE OF ACTION: Breach of contract.

COMPLAINT ALLEGATIONS: In 1998, Activision entered into a 10-year agreement with Viacom, which owns the Star Trek franchise. Activision got the exclusive right to develop and sell Star Trek video game products, as well as an express written commitment that Viacom would use its commercial best efforts to continue to exploit Star Trek over the 10-year period. But after releasing three Star Trek movies from 1994 to 1998, Viacom waited 4 years to release the next one and has no plans to make any new Star Trek films or TV series. Viacom's current Star Trek TV series is getting poor ratings and weak promotional support. Viacom also failed to provide information about the last Star Trek film, 'Nemesis,' until shortly before its release, making it too late to develop a game tied to the movie. Activision has spent millions developing the games, and has paid more than $11 million in guaranteed royalties to Viacom as well as providing stock warrants that have been exercised for $10 million more.

RELIEF SOUGHT: Unspecified damages and a constructive trust on the warrants in Viacom's possession.

PLAINTIFF'S COUNSEL: Ronald L. Olson, Glenn D. Pomerantz, David M. Rosenzweig and Kate K. Anderson of Los Angeles' Munger, Tolles & Olson (213-683-9100).

CASE CAPTION: MPH Entertainment Inc. v. Nia Vardalos, My Penzatta Inc., Home Box Office Inc.; Gold Circle Films LLC, The Playtone Co. and Big Wedding LLC, L. A. Superior Court # BC298387.

CAUSES OF ACTION: Declaratory relief, breach of third-party beneficiary contract; and breach of contract.

COMPLAINT ALLEGATIONS: In 1997, MPH produced 'Men Seeking Women' in which actress Vardalos had a small part. She urged the MPH principals to read her film script 'My Big Fat Greek Wedding.' They did and were the first to see the potential of producing it. MPH bought an option on the script and exercised it for $60,000 and agreed that Vardalos would star in it. After other parties became involved, MPH agreed to dilute its participation in the film to 3% of actual profits. MPH did not get its profits. In fact, in a recent accounting statement provided by Gold Circle and HBO, the film, which cost only $5 million to make and grossed more than $600 million, has supposedly lost more than $20 million.

RELIEF SOUGHT: At least $20 million and an accounting.

PLAINTIFF'S COUNSEL: Henry D. Gradstein and Bruce E. Van Dalsem of Los Angeles' Gradstein, Luskin & Van Dalsem (310) 571-1700).