Courthouse Steps

CASE CAPTION: Marvel Enterprises Inc. v. Sony Pictures Entertainment Inc. and Columbia Pictures, a division of Columbia Pictures Industries, Inc., L.A. Superior Court # BC309803.

CAUSES OF ACTION: Breach of written contract; breach of the implied covenant of good faith and fair dealing; accounting; and unfair business practices in violation of Calif. Bus. & Prof. Code Sec. 17200 et seq.

COMPLAINT ALLEGATIONS: The “Men In Black” (MIB) films were based on Marvel's intellectual property. According to the defendants' net proceeds statements, the first MIB film grossed $493 million and the second film almost $275 million. Yet the statements provided to Marvel state that the films have actually lost tens of millions of dollars. Sony Pictures' financial statements “ask Marvel to accept as reality that, for every dollar earned, two were spent,” that distribution costs equaled or exceeded revenues and that costs of advertising alone equaled the cost of production. “Not only do the financial statements provided to Marvel defy common sense, given the 'MIB' motion pictures' public track records, they are replete with unsupported and unexplained specific charges whose only purpose is to unjustly enrich defendants.” Sony charged overhead on advertising without any explanation. As to merchandising, Sony has failed to report revenues, taken unauthorized deductions and overstated expenses.

RELIEF SOUGHT: At least $6 million in compensatory damages and an injunction against acts of unfair and unlawful competition.

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

CASE CAPTION: Lynn Doe (aka Shawna Doe) v. CBS Broadcasting Inc., Betsy West, Susan Zirinsky, Rob Klug, Al Briganti, Elizabeth Luster, Roger Jon Diamond and Kiana Sloan-Hillier, L.A. Superior Court # BC309312.

CAUSES OF ACTION: Negligence, intentional infliction of emotional distress, unfair business practices under Calif. Bus. & Prof. Code 17200 and invasion of privacy.

COMPLAINT ALLEGATIONS: Diamond and Sloan-Hillier are lawyers. West is a senior vice-president of CBS News. Zirinsky is a producer of the TV show “48 Hours.” Klug is a director. Briganti is executive editor of “48 Hours.” In 1998, the plaintiff was subjected to multiple sexual assaults by an individual named Andrew Luster, who used a date rape drug on her and also videotaped the assaults. During Luster's trial, Ventura Superior Court Judge James Cloninger issued a protective order sealing the videos and decided that no one other than the prosecutors and defense team had any legitimate need to see the tapes. The tapes were in possession of Luster's lawyers, Diamond and Sloan-Hillier. They put them in an anteroom in the courthouse. During a trial recess, Luster fled the jurisdiction with the videos. Elizabeth Luster, Andrew's mother, knew of the protective order but gave the videos to CBS for “48 Hours.” The CBS defendants copied, edited and broadcast the tapes.

RELIEF SOUGHT: Unspecified compensatory and punitive damages.

PLAINTIFF'S COUNSEL: Michael C. Baum and Sandra Khalili of Los Angeles' Resch Polster Alpert & Berger LLP (310-277-8300) and Barry Novak of Beverly Hills (323-852-1030).

CASE CAPTION: Clive Cussler, Sahara Gold LLC, Clive Cussler Enterprises Inc. and Sandecker RLLLP v. Crusader Entertainment LLC and The Anschutz Co., L.A. Superior Court # BC309114.

CAUSES OF ACTION: Declaratory relief, breach of contract, Lanham Act violation, reformation and cancellation.

COMPLAINT ALLEGATIONS: Anschutz is the sole shareholder of Crusader. In 2001, the plaintiffs and Crusader entered into a written agreement under which Crusader got options to the film rights to Cussler's novels. The agreement gave Cussler an unqualified right of approval over the screenplays and stated that they wouldn't be materially changed. If not for those rights, Cussler wouldn't have entered into the agreement. In 2001, Crusader exercised options to acquire film rights to two Cussler novels. The agreement stated that if Crusader didn't commence principal photography of an approved screenplay within 24 months of the initial option, Crusader would not have any further options to purchase novel rights or have any other rights under the agreement. Crusader materially altered a screenplay that Cussler approved for the initial picture. More than 24 months have passed since the exercise and Crusader has never commenced principal photography on the approved screenplay.

RELIEF SOUGHT: An injunction against exploitation of the disapproved film and $10 million, plus punitive damages.

PLAINTIFFS' COUNSEL: Bertram Fields and Elisabeth A. Moriarty of Los Angeles' Greenberg Glusker Fields Claman Machtinger & Kinsella (310-553-3610).

CASE CAPTION: Starz Encore Group LLC (SEG) v. Buena Vista Television Inc. and Buena Vista Datacasting (dba MovieBeam), U.S. District Court for the Central District of California #CV04-0191.

CAUSES OF ACTION: Breach of contract and declaratory judgment.

COMPLAINT ALLEGATIONS: The plaintiff provides premium entertainment programming to cable and satellite TV systems through the Starz! and Encore movie channels. In 1999, SEG's predecessor, Encore Media Group LLC, entered into an output agreement with Buena Vista, a subsidiary of the Walt Disney Co. SEG bargained for and won the right to the first television subscription exhibition of Buena Vista's movies. Despite this, BVT has licensed its films to Buena Vista Datacasting, another Disney subsidiary, on a subscription basis prior to the plaintiff's first license period. This is a clear violation of the license agreement.

RELIEF SOUGHT: Specific performance of the license agreement or unspecified compensatory damages.

PLAINTIFF'S COUNSEL: Dale F. Kinsella, Michael J. Kump and David E. Lederman of Los Angeles' Greenberg Glusker Fields Claman Machtinger & Kinsella (310-553-3610), and John F. Walsh of Denver, CO's Hill & Robbins (303-296-8100).

CASE CAPTION: National Broadcasting Company Inc. and NBC Enterprises Inc. v. E! Entertainment Television Inc. and E! Online Inc., U.S. District Court for the Central District of California # CV04-0158.

CAUSES OF ACTION: Copyright infringement, trademark infringement, unfair competition and breach of implied covenant of good faith and fair dealing.

COMPLAINT ALLEGATIONS: The defendants have engaged in “blatant and willful infringement” on the copyright and trademark of the TV show “Saturday Night Live” (SNL). NBC Enterprises granted E! exclusive, but limited, rights to telecast specific episodes of SNL. In late October 2003, the plaintiffs learned that E! was in the process of creating its own series of SNL programs. This was a five-episode series entitled “101 Most Unforgettable SNL Moments,” a best-of compilation of sketches using footage that would directly compete with SNL compilation projects that the plaintiffs undertake from time to time. NBC Enterprises told E! that E! wasn't authorized to do this. To their astonishment, the plaintiffs learned in December 2003 that E! was proceeding with its SNL compilation series, despite the plaintiffs' express refusal to consent to its production and broadcast. The defendants responded with a letter that they still intended to broadcast the series.

RELIEF SOUGHT: Treble damages and an injunction against broadcast of the series.

PLAINTIFFS' COUNSEL: James M. Lichtman and Camilo Echavarria of NBC West LLC in Burbank, CA (818-840-4405).

CASE CAPTION: Marvel Enterprises Inc. v. Sony Pictures Entertainment Inc. and Columbia Pictures, a division of Columbia Pictures Industries, Inc., L.A. Superior Court # BC309803.

CAUSES OF ACTION: Breach of written contract; breach of the implied covenant of good faith and fair dealing; accounting; and unfair business practices in violation of Calif. Bus. & Prof. Code Sec. 17200 et seq.

COMPLAINT ALLEGATIONS: The “Men In Black” (MIB) films were based on Marvel's intellectual property. According to the defendants' net proceeds statements, the first MIB film grossed $493 million and the second film almost $275 million. Yet the statements provided to Marvel state that the films have actually lost tens of millions of dollars. Sony Pictures' financial statements “ask Marvel to accept as reality that, for every dollar earned, two were spent,” that distribution costs equaled or exceeded revenues and that costs of advertising alone equaled the cost of production. “Not only do the financial statements provided to Marvel defy common sense, given the 'MIB' motion pictures' public track records, they are replete with unsupported and unexplained specific charges whose only purpose is to unjustly enrich defendants.” Sony charged overhead on advertising without any explanation. As to merchandising, Sony has failed to report revenues, taken unauthorized deductions and overstated expenses.

RELIEF SOUGHT: At least $6 million in compensatory damages and an injunction against acts of unfair and unlawful competition.

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

CASE CAPTION: Lynn Doe (aka Shawna Doe) v. CBS Broadcasting Inc., Betsy West, Susan Zirinsky, Rob Klug, Al Briganti, Elizabeth Luster, Roger Jon Diamond and Kiana Sloan-Hillier, L.A. Superior Court # BC309312.

CAUSES OF ACTION: Negligence, intentional infliction of emotional distress, unfair business practices under Calif. Bus. & Prof. Code 17200 and invasion of privacy.

COMPLAINT ALLEGATIONS: Diamond and Sloan-Hillier are lawyers. West is a senior vice-president of CBS News. Zirinsky is a producer of the TV show “48 Hours.” Klug is a director. Briganti is executive editor of “48 Hours.” In 1998, the plaintiff was subjected to multiple sexual assaults by an individual named Andrew Luster, who used a date rape drug on her and also videotaped the assaults. During Luster's trial, Ventura Superior Court Judge James Cloninger issued a protective order sealing the videos and decided that no one other than the prosecutors and defense team had any legitimate need to see the tapes. The tapes were in possession of Luster's lawyers, Diamond and Sloan-Hillier. They put them in an anteroom in the courthouse. During a trial recess, Luster fled the jurisdiction with the videos. Elizabeth Luster, Andrew's mother, knew of the protective order but gave the videos to CBS for “48 Hours.” The CBS defendants copied, edited and broadcast the tapes.

RELIEF SOUGHT: Unspecified compensatory and punitive damages.

PLAINTIFF'S COUNSEL: Michael C. Baum and Sandra Khalili of Los Angeles' Resch Polster Alpert & Berger LLP (310-277-8300) and Barry Novak of Beverly Hills (323-852-1030).

CASE CAPTION: Clive Cussler, Sahara Gold LLC, Clive Cussler Enterprises Inc. and Sandecker RLLLP v. Crusader Entertainment LLC and The Anschutz Co., L.A. Superior Court # BC309114.

CAUSES OF ACTION: Declaratory relief, breach of contract, Lanham Act violation, reformation and cancellation.

COMPLAINT ALLEGATIONS: Anschutz is the sole shareholder of Crusader. In 2001, the plaintiffs and Crusader entered into a written agreement under which Crusader got options to the film rights to Cussler's novels. The agreement gave Cussler an unqualified right of approval over the screenplays and stated that they wouldn't be materially changed. If not for those rights, Cussler wouldn't have entered into the agreement. In 2001, Crusader exercised options to acquire film rights to two Cussler novels. The agreement stated that if Crusader didn't commence principal photography of an approved screenplay within 24 months of the initial option, Crusader would not have any further options to purchase novel rights or have any other rights under the agreement. Crusader materially altered a screenplay that Cussler approved for the initial picture. More than 24 months have passed since the exercise and Crusader has never commenced principal photography on the approved screenplay.

RELIEF SOUGHT: An injunction against exploitation of the disapproved film and $10 million, plus punitive damages.

PLAINTIFFS' COUNSEL: Bertram Fields and Elisabeth A. Moriarty of Los Angeles' Greenberg Glusker Fields Claman Machtinger & Kinsella (310-553-3610).

CASE CAPTION: Starz Encore Group LLC (SEG) v. Buena Vista Television Inc. and Buena Vista Datacasting (dba MovieBeam), U.S. District Court for the Central District of California #CV04-0191.

CAUSES OF ACTION: Breach of contract and declaratory judgment.

COMPLAINT ALLEGATIONS: The plaintiff provides premium entertainment programming to cable and satellite TV systems through the Starz! and Encore movie channels. In 1999, SEG's predecessor, Encore Media Group LLC, entered into an output agreement with Buena Vista, a subsidiary of the Walt Disney Co. SEG bargained for and won the right to the first television subscription exhibition of Buena Vista's movies. Despite this, BVT has licensed its films to Buena Vista Datacasting, another Disney subsidiary, on a subscription basis prior to the plaintiff's first license period. This is a clear violation of the license agreement.

RELIEF SOUGHT: Specific performance of the license agreement or unspecified compensatory damages.

PLAINTIFF'S COUNSEL: Dale F. Kinsella, Michael J. Kump and David E. Lederman of Los Angeles' Greenberg Glusker Fields Claman Machtinger & Kinsella (310-553-3610), and John F. Walsh of Denver, CO's Hill & Robbins (303-296-8100).

CASE CAPTION: National Broadcasting Company Inc. and NBC Enterprises Inc. v. E! Entertainment Television Inc. and E! Online Inc., U.S. District Court for the Central District of California # CV04-0158.

CAUSES OF ACTION: Copyright infringement, trademark infringement, unfair competition and breach of implied covenant of good faith and fair dealing.

COMPLAINT ALLEGATIONS: The defendants have engaged in “blatant and willful infringement” on the copyright and trademark of the TV show “Saturday Night Live” (SNL). NBC Enterprises granted E! exclusive, but limited, rights to telecast specific episodes of SNL. In late October 2003, the plaintiffs learned that E! was in the process of creating its own series of SNL programs. This was a five-episode series entitled “101 Most Unforgettable SNL Moments,” a best-of compilation of sketches using footage that would directly compete with SNL compilation projects that the plaintiffs undertake from time to time. NBC Enterprises told E! that E! wasn't authorized to do this. To their astonishment, the plaintiffs learned in December 2003 that E! was proceeding with its SNL compilation series, despite the plaintiffs' express refusal to consent to its production and broadcast. The defendants responded with a letter that they still intended to broadcast the series.

RELIEF SOUGHT: Treble damages and an injunction against broadcast of the series.

PLAINTIFFS' COUNSEL: James M. Lichtman and Camilo Echavarria of NBC West LLC in Burbank, CA (818-840-4405).