Courthouse Steps

CASE CAPTION: Sean Gallagher v. Granada Entertainment USA Inc., ITV Plc, Paul Jackson, Jane Turton, Ivan Garel-Jones, Andrew Baker, Simon Walshaw, and Stephen Davis, L.A. Superior Court # BC347170.

CAUSES OF ACTION: Wrongful demotion and termination in violation of public policy; violation of Calif. Labor Code Sec. 1102.5; breach of contract; unfair business practices; in-tentional infliction of emotional distress; fraud; and conversion.

COMPLAINT ALLEGATIONS: The plaintiff was promoted to vice president of business and legal affairs of Granada Entertainment in Oct. 2001. Two years later, Granada and Carlton Communications merged and formed ITV Plc. At the end of Nov. 2003, the plaintiff raised concerns about alleged illegal and unethical corporate, financial, tax and legal matters, including false representations made to third parties. He complained to various government agencies, including OSHA and the SEC. In Feb. 2004, shortly after expressing more concerns about possible fraud and well before his employment contract expired, he was escorted out of his office and in-formed that he had been fired. The defendants have refused to give the plaintiff his stock options for the years 2002 and 2003 and have kept computer equipment, notebooks and other personal items that were in his office.

PLAINTIFF'S COUNSEL: Mark Yablonovich, Marc Primo and Monica Balderrama of L.A.'s Initiative Legal Group (310-556-5637).

CASE CAPTION: Media 8 Entertainment and MDP Distribution Inc. v. D.E.J. Productions Inc., Blockbuster Inc. and First Look Studios Inc., L.A. Superior Court # BC346668.

CAUSES OF ACTION: Breach of contract; breach of covenant of good faith and fair dealing; breach of fiduciary duty; intentional interference with contract; negligent interference with contract; aiding and abetting breach of fiduciary duty; an accounting; and declaratory relief.

COMPLAINT ALLEGATIONS: Blockbuster owns D.E.J. Media 8 produced the film “Monster,” starring Charlize Theron and entered into a licensing agreement with D.E.J. Under the deal, Media 8 was to get a minimum of $4.5 million, plus 65% of receipts in excess of the guaranteed amount minus certain expenses and distribution fees. Among other things, Blockbuster caused D.E.J to enter into non-arms length transactions with regard to DVD and video rentals and caused D.E.J. to deduct expenses not incurred. The plaintiffs audited D.E.J.'s books in the summer of 2005 and calculated that D.E.J. underpaid Media 8 by almost $9 million. First Look acquired D.E.J. from Blockbuster in November for $25 million and has also refused to compensate Media 8.

PLAINTIFFS' COUNSEL: Steven A. Velkei and Petty W. Tsay of the Los Angeles office of Liner, Yankelevitz Sunshine & Regenstreif LLP (310-500-3500).

CASE CAPTION: Sean Gallagher v. Granada Entertainment USA Inc., ITV Plc, Paul Jackson, Jane Turton, Ivan Garel-Jones, Andrew Baker, Simon Walshaw, and Stephen Davis, L.A. Superior Court # BC347170.

CAUSES OF ACTION: Wrongful demotion and termination in violation of public policy; violation of Calif. Labor Code Sec. 1102.5; breach of contract; unfair business practices; in-tentional infliction of emotional distress; fraud; and conversion.

COMPLAINT ALLEGATIONS: The plaintiff was promoted to vice president of business and legal affairs of Granada Entertainment in Oct. 2001. Two years later, Granada and Carlton Communications merged and formed ITV Plc. At the end of Nov. 2003, the plaintiff raised concerns about alleged illegal and unethical corporate, financial, tax and legal matters, including false representations made to third parties. He complained to various government agencies, including OSHA and the SEC. In Feb. 2004, shortly after expressing more concerns about possible fraud and well before his employment contract expired, he was escorted out of his office and in-formed that he had been fired. The defendants have refused to give the plaintiff his stock options for the years 2002 and 2003 and have kept computer equipment, notebooks and other personal items that were in his office.

PLAINTIFF'S COUNSEL: Mark Yablonovich, Marc Primo and Monica Balderrama of L.A.'s Initiative Legal Group (310-556-5637).

CASE CAPTION: Media 8 Entertainment and MDP Distribution Inc. v. D.E.J. Productions Inc., Blockbuster Inc. and First Look Studios Inc., L.A. Superior Court # BC346668.

CAUSES OF ACTION: Breach of contract; breach of covenant of good faith and fair dealing; breach of fiduciary duty; intentional interference with contract; negligent interference with contract; aiding and abetting breach of fiduciary duty; an accounting; and declaratory relief.

COMPLAINT ALLEGATIONS: Blockbuster owns D.E.J. Media 8 produced the film “Monster,” starring Charlize Theron and entered into a licensing agreement with D.E.J. Under the deal, Media 8 was to get a minimum of $4.5 million, plus 65% of receipts in excess of the guaranteed amount minus certain expenses and distribution fees. Among other things, Blockbuster caused D.E.J to enter into non-arms length transactions with regard to DVD and video rentals and caused D.E.J. to deduct expenses not incurred. The plaintiffs audited D.E.J.'s books in the summer of 2005 and calculated that D.E.J. underpaid Media 8 by almost $9 million. First Look acquired D.E.J. from Blockbuster in November for $25 million and has also refused to compensate Media 8.

PLAINTIFFS' COUNSEL: Steven A. Velkei and Petty W. Tsay of the Los Angeles office of Liner, Yankelevitz Sunshine & Regenstreif LLP (310-500-3500).