(2014)
McDonald v. Brown
Plaintiff McDonald authored a screenplay titled “Remnants” (renamed “Aftermath”) that he hoped to turn into an independent film. To produce that film, McDonald and Allison Hull created a partnership called Res Ipsa Loquitur Productions.
Eventually, Defendant Steven Brown and his production company, Cine Globe Productions LLC, expressed interest in producing “Remnants.” To that end, Hull and Brown executed an operating agreement for Remnants Productions LLC. Under the operating agreement, Res Ipsa owned 49.5% and Cine Globe owned 50.5% of Remnants Productions. Res Ipsa would oversee creative development and Cine Globe would obtain financing. Res Ipsa agreed to contribute the screenplay copyright, McDonald’s services as writer and director, and Hull’s services as executive producer to the new enterprise. And Cine Globe promised to arrange financing and production and to contribute Brown’s services as a producer.
McDonald executed two copyright assignments, transferring the screenplay copyright from McDonald to Res Ipsa and then from Res Ipsa to Remnants Productions. McDonald claims he signed the transfers because Reiss promised that McDonald would direct the film and retain the screenplay copyright until McDonald completed his services as writer and director.
After overtures to potential investors, Conigliaro and several others agreed to finance the film with McDonald serving as director. One month later, McDonald’s services as director ended abruptly. Production was completed in January 2010 under the supervision of another director. According to McDonald’s attorney, McDonald learned the “Remnants” copyright was no longer registered in his name.
In 2011, Conigliaro brought various statutory and common law claims for misrepresentation and breach of fiduciary duty against Brown, Remnants Productions, and other entities involved in the film, but not McDonald. During settlement discussions, the parties proposed transferring the “Remnants” screenplay copyright to Conigliaro. Reiss argued that any settlement transferring the copyright without awarding McDonald compensation could jeopardize the original copyright transfer from Res Ipsa to Remnants Productions. Undeterred, the Conigliaro Defendants settled with Brown, Remnants Productions, and three others, transferring the “Remnants” screenplay copyright without compensating McDonald.