Dispute regarding allegations of a default on a promissory note executed by an entertainment company containing a personal guarantee in favor of a member of a family trust.
Multi-platform media and production company alleged that it produced a film, and granted distribution rights to defendant within a specified territory within several major markets for a specified period of time. The producer alleged that defendant was responsible for collecting revenues and paying the producer a percentage thereof, that the agreement between the parties also required defendant to pay him an advance for separate packaged media rights in connection with the theatrical release of the film, and that defendant was required to launch the theatrical release in a specified number of theaters. The producer further alleged that defendant did not remit full payment to the production company, did not adhere to its confidentiality obligations, or provide an accounting. The production company filed an action for breach of contract, accounting, and conversion.
Writer/producer and his loan out company alleged that they entered into a contract to provide writing services and executive producing services, in exchange for fixed payments and an executive producing credit. They further alleged that production on the film commenced, triggering the payments due, but the payments due were not made. Plaintiffs filed an action for breach of contract, and defendants denied that any additional payments were due.
Plaintiff alleged that defendant production company acquired the media rights to a book series, and assigned the rights to two related defendant production companies. Plaintiff further alleged that one of the related production companies entered into a distribution deal for television episodes based on the book series, that plaintiff and defendants entered into an agreement for plaintiff to fund production of the television episodes, and that the agreement required defendants to assign all rights to the book series to a related company, in which plaintiff and defendants each had a substantial membership interest. The agreement allegedly conferred on plaintiff decision making authority over any decisions having to do with financing, credits, and other issues, requiring plaintiff’s written approval. Plaintiff alleged that defendants did not assign the rights as required by the agreement, and that defendants entered into a distribution deal for a second season without plaintiff’s written approval. Plaintiff filed an action for breach of fiduciary duty, breach of contract, breach of the covenant of good faith and fair dealing, and declaratory relief. Defendants alleged in a cross-complaint against plaintiff and its principals that they failed to execute all of the documents necessary for production, and failed to adequately fund the production. The cross-complaint alleged causes of action for breach of contract, breach of the covenant of good faith and fair dealing, and breach of fiduciary duty.