(2015) Tags: Warner Bros
Kennedy Miller Mitchell Films Pty Limited v. Warner Bros. Feature Productions Pty Limited
Director George Miller and and Doug Mitchell’s production company Kennedy Miller Mitchell Films (KMM) had a contractual provision that if the final net cost of the movie ‘Mad Max: Fury Road’ was $157 million or less, KMM would be entitled to a $7 million bonus.
On WB’s calculations ‘Mad Max: Fury Road’ went over budget. If these calculations are right, KMM does not get a bonus. KMM claims that WB made a series of decisions which caused substantial changes and delays to ‘Mad Max: Fury Road’, which led to additional costs and expenses and that WB wrongly took them into account in its over budget calculation. If those costs are left out of account, KMM says that ‘Mad Max: Fury Road’ came in under budget. KMM also claims that WB entered into a co-financing arrangement with an organisation called Ratpac for 12.5% of the funding of ‘Mad Max: Fury Road’ and that WB breached the obligation first to offer such an arrangement to KMM.
KMM also brings a claim of misleading and deceptive conduct under s 18 of the Australian Consumer Law asserting that WB and Warner Bros. did not inform them of the fact that they did not intend the additional costs incurred by the changes and delays to ‘Mad Max: Fury Road’ brought about by them, to be excluded costs for the purposes of the budget calculation. They make a claim against Warner Bros. of knowing and intentional interference with KMM’s contractual rights to be offered co-financing, by causing WB to contract with Ratpac.