Voronwë_the_Faithful
Valinor
Jun 6 2008, 7:12am
Views: 1698
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Let Me Try To Clarify Further
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Hi Elven! Thankyou for all your help with the clarification on the case! Cheers!! As I said before, it is my pleasure! The folks here are so appreciative; it is very welcoming! I get the impression that this case (regardless of tomorrows outcome if mediation is ordered and if that mediation takes place) would go ahead from the plantiffs point of view so that further down the track, 'The Agreements' are determined upon - otherwise Im not seeing what the point of the case would be - what do you feel? Yes, you are right on the money here. The main point of the case is to interpret the agreements, and whether New Line has breached them. Im not sure of the order of the way things are progressing. I thought it would be the other way around - for the Courts to determine the contracts validity first, and to then determine if the charge of fraud was applicable? Let me back up for second, and pedantically explain a bit about our legal system. Forgive me if this is getting to fundamental, but I think it might be helpful for people. Our legal system is divided into two parts, criminal and civil. The purpose of criminal law is punish individuals (including corporations, sometimes) for wrongdoing. The purpose of civil law is to try to make the individual who was wronged (including a corporation) "whole"; in other words to compensate them for the harm that they have suffered. This is a civil case, so it falls into the latter category. Civil cases themselves are broken into two categories; contract law and tort law. Contract law involves the breach of an agreement between two parties; the only damages that can be collected in contract cases are the economic damages that the breach of the agreement caused. Tort cases include, among other things, assault and battery, negligence, and fraud cases. In Tort cases, the plaintiff sometimes is entitled to more damages than just the economic damages, including "punitive damages" if it can be proven that the defendant acted with malice or oppression or fraud. In order to prove a case of fraud, it must be proven that the defendant made some misrepresentation that they knew or should have known was false, which the plaintiff relied upon, causing the plaintiff some harm. Normally it is difficult to allege fraud in a contract case unless it can be shown that the fraud induced the plaintiff to enter into the contract. Here that is certainly not the case. The plaintiffs are alleging that New Line committed fraud by misrepresenting the profit figures. New Line is arguing that even if they did misrepresent the profits (which they deny), the plaintiffs can't argue that they relied on those representations in any way that harmed them. In other words, the contract already existed, and its terms were set, so there can't be any valid cause of action for fraud, even if the plaintiff's allegations were proven to be true. I think that is a pretty strong argument. The other argument that New Line is making in its demurrer is regarding the plaintiff's cause of action for breach of a fiduciary duty. A fiduciary duty is usually some special relationship that exist for instance between a broker and his client, or a banker, or a trustee. I can't see what kind of fiduciary duty the plaintiffs are alleging existed between them and New Line, so I think New Line has a good argument here as well. The above Motion to Strike - in itself, seems a case in itself - is that right? The Motion to Strike is simply an attempt to remove the request for punitive damages. It is essentially an extension of the demurrer. They are arguing that since neither the fraud nor breach of fiduciary duty causes of action are valid, they are not liable for punitive damages. Thats possibly why the Plantiffs have included the past, present and future exploitation of the movies gross profit reciept revenues in their complaint? So that if the movie is made they will still get paid. Yes, I think that the Plaintiffs' real goal is to both get paid what they are owed for the previous movies, and make sure that they get paid what they are due for the future movies. So can the Courts determine which way and what procedures they will tackle first? No, not really. That is more up to the parties. Or have New Line decided to take this avenue of approach (Motion to Strike) on these other issues so as to buy time? No, I think there main goal there is to limit their potential liability. Do you think Warners/New Line are being confident - or brazen? Thus far I think they are being realistic and reasonable, whereas the Tolkiens lawyers are really being over the top (which is part of the reason why Christopher has gotten such bad press recently.
'But very bright were the stars upon the margin of the world, when at times the clouds about the West were drawn aside.'
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