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Film and Music Cases Result in Different Outcomes for Default Judgment Motions
Non-payment of monies is an all-too-common complaint in the entertainment industry, with frustrated plaintiffs in many cases seeking default judgments against defendants who fail to respond to lawsuits seeking payment. Two new Central District of California federal court decisions illustrate — after the judges sorted through the factors for determining whether to grant a default judgment — how consideration of the amount of money at issue resulted in different outcomes on whether to enter a default judgment.
In Molly Moon Films Ltd. (MMF) v. ARC Entertainment LLC, 2:17-cv-0929 (2019), MMF had completed its motion picture Molly Moon: The Incredible Hypnotist and secured a deal for ARC Entertainment "to license, sub-license, distribute, advertise, promote, market, and publicize the Motion Picture for theaters, home use and digitally" in the United States and Canada. ARC in return agreed to pay MMF an $80,000 advance, a share of net revenues and bonus payments for higher sales of the film.
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