A selected summary of Southern California-related business litigation developments during the past week.
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Director Sues Filmstar for Breach of Contract: Richard Fleischer and the Directors Guild of America sued Filmstar Inc., alleging that it failed to pay Fleischer in a “pay or play” agreement to direct a project called “Lost,” which was abandoned for lack of financing. The Superior Court lawsuit alleges that Filmstar agreed Feb. 22, 1989, to pay Fleischer a guaranteed $600,000, later changed to $500,000, to be placed in escrow; 2.5% of gross receipts from the film, and $25,000 in pension and health payments to DGA. The suit alleges that Filmstar paid only $25,000 of the $500,000, did not put it in escrow and led Fleischer to falsely believe that it had financing for the film. The suit seeks $500,000 in damages plus late charges. “It’s a frivolous lawsuit, “ said Harlan Kleiman, head of Filmstar. (Case No. BC022124. Filed Feb. 25.)
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