Date: 08-16-2004

Case Style: Intertainment Licensing GmbH v. Franchise Pictures, et al.

Case Number: SACV 01-1025 AHS (AJWx)

Judge: Alicemarie H. Stotler

Court: United States District Court, Central District, California

Plaintiff's Attorney: Scott Edelman and Michael Adler, Gibson, Dunn & Crutcher, Los Angeles, CA Michael P. McNamara, McNamara Spira & Smith, Los Angeles, CA

Defendant's Attorney: Bill Price and Jon Cederberg, Quinn Emanuel Urquhart Oliver and Hedges LLP, Los Angeles, CA

Description: Intertainment licensed films like "Whole Nine Yards," "Art of War," "3000 Miles to Graceland," and "The Pledge" for distribution in Europe from Franchise Pictures LLC and related parties. Franchise provided various budgets to Intertainment for these films.

Intertainment claimed that it had agreed to license these films based upon a percentage of the budget (usually 47% for all of Europe) and that the budgets were inflated. For example, Intertainment was told that the budget on "The Pledge" was $55 million when in fact it was $37 million. Intertainment claimed tens of millions of dollars in overpayments.

Franchise admitted that the budgets were inflated but contended that Intertainment did not agree to pay on the basis of the budgets. Franchise further contended that Intertainment knew or should have known the budgets were inflated and in fact contended that Intertainment had originally suggested the budget inflation.

Outcome: Plaintiff's Verdict for $121,690,060.00.

Plaintiff's Experts: Dr. Robert Wunderlich, Los Angeles, CA (damages) Tekla Morgan, Los Angeles, CA (film completion bond)

Defendant's Experts: None called.

Comments: Reported by Michael S. Adler 310-552-8500