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The California Court of Appeal, Second District, ruled that a company that loaned funds to a film producer wasn't entitled to attorney fees in a suit the company brought against a home-video distributor to recover revenues the distributor allegedly owed the production company. Ilshin Investment Co. Ltd. v. Buena Vista Home Entertainment Inc., B208839. Ilshin, a Korean company, had loaned money to Last Patriot Productions to make the movie The Patriot. The film didn't find theatrical exhibition but was instead distributed by Buena Vista via home video. The exclusive distribution agreement required Buena Vista to obtain Last Patriot's consent before incurring recoupable distribution expenses exceeding $900,000. Buena Vista allegedly failed to obtain the approval. Ilshin filed suit against Buena Vista in Los Angeles Superior Court for that as well as for prematurely terminating the distribution deal. The trial court awarded the plaintiff contract damages, lost profits and attorney fees. The court of appeal later reversed the damages award in part and set aside the attorney fees award, but found the trial court had erred by not granting a directed verdict for Ilshin on Ilshin's claim of conversion. In setting aside the award of attorney fees, the court of appeal noted that Ilshin's “breach of contract claims alleged that Ilshin was an unsatisfied judgment creditor of Last Patriot; that 'Buena Vista has possession or control of property in which [Last Patriot], a judgment debtor, has an interest'; and that 'Ilshin, as a judgment creditor, is entitled to bring suit against Buena Vista to have the property turned over to the judgment creditor and applied towards the reduction of the debt.' ' These allegations bring Ilshin's claim within [Calif. Civ. Code ']708.210,” which doesn't allow an attorney fees award in “independent creditor” suits such as this.

Prevailing Defendant Can Get Attorney Fees, Whether or Not Plaintiff Has Registered Copyright in Dispute