(2018)
Bank Leumi, USA v. Open Road Films, LLC
Bank Leumi, USA v. Miramax Distribution Services, LLC et al.
Bank Leumi launched two related lawsuits:
In 2013, Good Films Enterprises, LLC acquired the rights to produce City of Lies for which actor Johnny Depp was cast in the lead role. The Distribution Agreement granted Open Road distribution rights both domestically and internationally, including with airlines, for a minimum guarantee payment of $5,400,000 to Good Films upon delivery. The Distribution Agreement granted Miramax distribution rights for free television domestically in exchange for a minimum guarantee payment of $4,250,000 to Good Films upon delivery.
As part of the financing of the movie production, Good Films entered into a Loan and Security Agreement with Plaintiff, in which Plaintiff agreed to lend Good Films $23,189,227. Miramax and Open Road agreed to pay their respective minimum guarantee payments directly to Plaintiff instead of to Good Films.
On July 17, 2018, Open Road would not accept the movie and would not honor its payment obligations, due to a claim of assault lobbied against Johnny Depp and the negative publicity surrounding the incident and the film. Because Open Road’s failure to fulfill its obligation to distribute the movie diminished the value of Miramax’s rights under the Distribution Agreement, Miramax refused to pay for City Of Lies.
Bank Leumi has been damaged in an amount in excess of $10,809,609, together with interest thereon.
Judgment: Requires arbitration over Plaintiff’s claims.