Entertainment Litigation Blog

NBC filed a lawsuit on Friday, January 25, 2008 against the creator and executive producer of its three "Law & Order" series, Dick Wolf. The lawsuit reveals a dispute between Wolf and NBC over the terms of his contracts for the three highly successful programs and seeks the court's intervention to interpret -- or reform -- the agreement between the parties.

According to NBC's complaint, Wolf takes the position that the parties agreed that the 2 season guarantee means that, should NBC terminate any of the Law & Order series, he is entitled to 2 years of producing fees, essentially as a severance or "kill fee." NBC disputes that interpretation. NBC claims that the parties agreed that NBC's promise of a 2 season guarantee means that, if NBC decides not to order an additional season of episodes, NBC would be on the hook only for the remaining year on the prior 2 year order.

The parties were unable to resolve their differences during pre-lawsuit negotiations -- and rumors abound that one or more of the Law & Order series are in trouble and could be cut from NBC's lineup.

Courts are generally loathe to change the terms of written contracts. So NBC has its work cut out for it to convince the court to re-write the agreement to conform to its understanding. And NBC claims that the agreements themselves are confidential in deciding not to file the documents with its complaint. So while it's difficult to analyze the exact dispute between the parties over interpretation of unseen documents, those details will eventually become public if the parties continue to litigate the case in the courts.

STUDIOS INVOKE FORCE MAJEURE TO JETTISON TALENT DEALS AS WRITERS STRIKE CONTINUES

As the strike by Hollywood's writers enters its third month, studios have started to terminate overall talent deals with producers and writers. Dubbed "Black Friday" and "Black Monday" by the trades, virtually every major television production arm terminated deals this past Friday and Monday. ABC Studios started the carnage on Friday, January 11. On Monday, January 14, CBS Paramount Network TV, Universal Media Studios, 20th Century Fox Television and Warner Bros. TV followed suit with their own cuts.

The studios' efforts to jettison these deals raises interesting issues and brings to the forefront potential strategies by artists who can use contractual rights to apply pressure to their studios.

Continue reading "ENTERTAINMENT NEWS: FORCE MAJEURE CLAUSES WREAK HAVOC ON TALENT DEALS" »

The Directors Guild announced a tentative collective bargaining agreement with the Alliance of Motion Picture and Television Producers (AMPTP). The DGA's description of their tentative deal can be found here. The directors received concessions on issues relating to jurisdiction over new media as well as on compensation for internet downloads and other new media.

The widely anticipated agreement now increases the pressure on the writers, who are entering the third month of their work stoppage. Whether the writers think the directors' agreement is sufficient remains to be seen.

The Writers Guild of America strike is now entering its third month. Production on film and television projects have ground to a halt. Yet, as my JMBM colleague, E. Barry Haldeman, suggests in his Malibu Times op-ed piece, the end may be in sight.

The WGA has signed "interim" agreements with independent production companies and smaller studios, which could signal a break in the ranks of the studios which have held firm against the writers' demands. The Weinstein Company, the newly revamped United Artists and David Letterman's Worldwide Pants Production Company are among the companies who have reportedly signed such interim agreements with the WGA. Those companies are now free to resume production on their projects.

In addition, the Directors Guild reportedly has achieved some progress in its "pre-negotiations" with the AMPTP. Reports suggest that the directors can reach agreement with the AMPTP in a matter of a couple of weeks.As Barry writes, these recent events give some hope that the writers' strike can also be resolved in short order.

However, the WGA and the studios/networks have recently taken adverse actions against each other, which suggests that a resolution is not imminent. The WGA has pressured networks and studios by refusing the grant waivers for the upcoming awards season. Having reduced the Golden Globes to a reading of award winners, the Oscars and the Grammys -- usually a time for celebration in the entertainment industry -- are now in jeopardy. On the other side, ABC Studios, CBS Paramount Network TV, Warner Bros. TV, 20th Century Fox TV and Universal Media Studios have started to terminate overall deals with writers and producers. Representatives of the terminated talent vow revenge. Thus, the end result of both sides continuing to draw blood from each other is that nothing is getting produced in Hollywood.

If both sides persist in continuing this fight, the obvious conclusion is that darker days for the industry lie ahead.