Buchwald, Paramount Settle Film Dispute

In a case that shed light on the murky world of studio accounting practices, Paramount Pictures and humorist Art Buchwald announced Tuesday that they have settled their seven-year legal battle over the film “Coming to America.”

Under terms of the settlement, reached after a year of negotiations, Buchwald and his producing partner, Alain Bernheim, are to receive $825,000, and a trial court judgment against Paramount has been vacated.

By settling, both sides avoided the risk of losing a hard-fought battle that could have had far-reaching repercussions for the entertainment industry.

Paramount had appealed the case after a Los Angeles judge in 1992 awarded $900,000 to Buchwald and Bernheim.

The syndicated humor columnist and movie producer had sued Paramount for breach of contract, contending that the 1988 film was based on a 2 1/2-page treatment Buchwald sold to the studio in 1983. The treatment described an African prince who leaves his homeland to find a wife.

Los Angeles Superior Court Judge Harvey A. Schneider held that the movie was indeed inspired by the treatment. In a ruling that created a storm in Hollywood, the judge also held that Paramount used an “unconscionable” formula to deny Buchwald and Bernheim net profits and royalties.

The studio denied that the film was based on the treatment. Paramount also said “Coming to America” was unlikely ever to return a net profit, even though it had grossed $145 million at the time.

On Tuesday, both sides expressed pleasure that the case was behind them.

“I think we made our point,” Buchwald said in a phone interview. He said a new management team now at Paramount was eager settle the matter and noted that his former adversaries in the suit, ranging from former Paramount Communications Chairman Martin S. Davis to onetime studio chief Frank Mancuso, have left the company. Paramount is now owned by Viacom Inc., and the studio is headed by Sherry Lansing.

“This new Paramount crowd just didn’t want any part of [the suit],” Buchwald said. “They said, ‘Get rid of it.’ I think Marty Davis would have fought us to the bitter end.”

“Our settling has nothing to do with who was right or wrong in the case,” a senior studio executive who was not identified said in a prepared statement.

“Our new management is artist friendly,” the statement continued. “We want a successful working relationship with the creative community and to avoid disputes with them wherever possible.”

The official said the studio wanted Buchwald and Bernheim as “friends, not opponents.”

Since the controversy over “Coming to America,” Paramount has been stung by criticism that some of its highest-grossing films have not made net profits despite raking in hundreds of millions of dollars at the box office.

Sources estimated that $12 million was spent by all sides in fighting the suit. The appellate court records, for example, run 37,000 pages.