Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Bit Parts

Fox Film's Refusal to Return Initial Investment Isn't Breach of Co-Financing Agreement

The California Court of Appeal, Second Appellate District, decided that Twentieth Century Fox Film didn't breach a “Co-Financing/Co-Producing & First Look” agreement by refusing to return an initial payment it received from its deal partner. Smashing Pictures LLC v. Twentieth Century Fox Film Corp., B227872. Smashing Pictures and Fox entered in an agreement covering as many as 20 teen-oriented movies, including four that were already completed and owned by Fox. Though it didn't pay Fox the full $25 million it promised to invest under the agreement, Smashing Pictures sued Fox in Los Angeles Superior Court for breach of contract, seeking return of the $8,618,151 it had paid. The trial court adopted a referee's report in favor of Fox. Affirming, the court of appeal observed in an unpublished opinion that Smashing Pictures argued that because it agreed to get “no interest in the films, then Fox must refund to Smashing the money it has already paid to Fox.” An amendment to the co-financing agreement negotiated after Smashing Pictures failed to pay the full $25 million “appears to address the very question facing the parties,” the court of appeal noted. The court added that the amendment “not only allocated Smashing's partial investment among the Inventory Pictures, but gave Fox 'sole discretion' to reallocate that investment if Smashing failed to provide full funding.”

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Judge Rules Shaquille O'Neal Will Face Securities Lawsuit for Promotion, Sale of NFTs Image

A federal district court in Miami, FL, has ruled that former National Basketball Association star Shaquille O'Neal will have to face a lawsuit over his promotion of unregistered securities in the form of cryptocurrency tokens and that he was a "seller" of these unregistered securities.

Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It Image

Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?

Blockchain Domains: New Developments for Brand Owners Image

Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.

Coverage Issues Stemming from Dry Cleaner Contamination Suits Image

In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.