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Aus: backstage.com vom 1. September SAG Audits Franchise Pictures Joins WGA, DGA in Residuals Claims By Roger Armbrust The Screen Actors Guild has joined the writers` and directors` unions in seeking out hundreds of potential residuals claims for its members from bankrupt Franchise Pictures. Franchise Pictures LLC and its subsidiaries filed Chapter 11 bankruptcy petitions on Aug. 19. SAG followed last week with a notice to members that the guild had joined with the Writers Guild of America and the Directors Guild of America in investigating the possible claims. The notice said that Franchise has been responsible for "production or distribution of about 75 motion pictures, employing hundreds of SAG members." The number of members presently appears to be over 700. "While the timing of these filings largely relates to judgments entered against Franchise and its principal Elie Samaha in litigation brought by German distributor and investor Intertainment Licensing GMBH, SAG has been anticipating this bankruptcy for some time," SAG`s notice stated. "In July, SAG, along with the DGA and WGA, retained counsel experienced in entertainment labor and bankruptcy matters to jointly represent their interests in Franchise. Since then, auditors retained by the guilds have had access to data concerning potential guild claims for residuals, and guild counsel has been in contact with Franchise and many of its creditors concerning protection of guild interests." Franchise`s bankruptcy filing followed a June 1 U.S. federal court jury verdict demanding that Franchise pay Intertainment $77.1 million in damages, $29 million in punitive damages, and interest on the incurred damages of $15.6 million. The jury further found Franchise`s Samaha personally liable for the $77 million as well as $4 million of the punitive damages. Intertainment`s lawsuit claimed that Samaha vastly inflated the budgets of such films as "Battlefield Earth," "Get Carter," and "The Whole Nine Yards," for which the German company had agreed to provide 47% of the financing. Samaha has said he will appeal the verdict, according to The Hollywood Reporter. "While it is far too early to predict outcomes, SAG and the other guilds expect to play an active role in this case," SAG informed its members regarding the bankruptcy proceeding. "The tri-guild approach has been successful in past bankruptcies as the guilds enjoy the economy of joint counsel and can also speak with a unified voice for common guild interests concerning payment for past and future residuals." SAG indicated that prospects are positive for members receiving payment because of the guild`s financial assurances program with signatories to SAG contracts, including security pacts, assumption agreements, "and other protection for member interests." However, the guild`s notice warned members, "the bankruptcy process will be lengthy and complicated." How long and complicated, no one can say at present. Much will depend on creditors` filings against Franchise, the attorneys` discovery process, in which they research and interview parties, and scheduling by the courts. "We expect all SAG member claims will ultimately be addressed through this process but ask that you not phone the guild with individual claims at this time," SAG`s notice said. "Also note that any of you holding participation claims or other interests beyond the SAG collective bargaining agreement may wish to retain individual counsel in connection with such non-SAG claims." Rather than phoning the guild, SAG asked members to check the union`s website at www.sag.org for updates. |
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| aus der Diskussion: | Nachrichten zum Prozeß Intertainment Franchise |
| Autor (Datum des Eintrages): | biglebovsky (03.09.04 08:03:18) |
| Beitrag: | 3,152 von 3,335 (ID:14202193) |
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