Records of Ex-Film Executive’s Deals Subpoenaed for Suit : Fox Has Nothing to Find, Levy Says

Norman Levy, formerly the $750,000-a-year vice chairman of 20th Century Fox Film Corp., said Tuesday that “there is nothing to find out” from records that the movie company has subpoenaed from firms with which he had negotiated while making outside film production and financing deals for Fox.

The studio has issued the subpoenas in the early stages of its fact-finding in connection with Levy’s $20-million suit against the studio over his employment contract. The suit was filed a month ago in Los Angeles County Superior Court.

Levy referred an inquiry about settlement negotiations to his attorney, Terry Christensen, who said: “From the beginning, Fox has wanted to settle the case, but we have not been interested in any of the proposals.”

Meanwhile, several close observers of the movie industry speculated Tuesday that Fox’s new legal move may amount to “hardball negotiating” to induce Levy to settle the contract dispute.

Fox’s subpoenas, which did not say why the information was being requested, asked five firms to produce all documents and records on Levy’s negotiations with them.

The firms include SLM Inc., a subsidiary of New Century Productions Ltd., which has injected tens of millions of dollars into Fox film productions in recent years, and Cineplex Corp., a Toronto-based movie chain.

Also included are independent film production firms whose pictures Fox obtained for distribution.

They are Davis/Panzer Productions Inc., Los Angeles, and two firms of New York-based film producer Arnon Milchan: Empax Films N.V. and Hapax International Pictures N.V.

Asked about the subpoenas, Levy said: “I don’t know what it’s about. I can only tell you they can look for whatever they want--there’s nothing to find.”

He confirmed that he had negotiated for Fox with the firms whose records were subpoenaed, adding:

“The product acquired (from them) was primarily fully financed pictures, and Fox had little or no exposure as relates to production costs.”

On that point, attorney Christensen commented: “Much of the financial success of Fox during the last few years was the result of the motion pictures picked up by Norman Levy.”

In his lawsuit, Levy claimed that he resigned last Sept. 26 in accordance with a “new agreement” with Fox’s new chairman, Barry Diller. Levy’s suit said Diller earlier demanded his resignation.

On Tuesday, Levy characterized as “pure nonsense” any question that Fox had fired him for cause. However, his attorney said it was “basically correct” that Fox has since taken the position that Levy was fired for cause, as a basis for refusing to pay him a promised $500,000 severance bonus last month.

Fox declined Tuesday to comment on the Levy litigation. The company has not yet filed an answer to the lawsuit.