(1978) Tags: Warner Bros.
Presidio Enterprises v. WARNER BROS. DISTRIBUTING
The distinctly unsettling thought of angry “killer bees” terrorizing an unsuspecting Texas town lies at the heart of this case. Appellant Warner Bros. thought it could turn this idea into a “chilling, riveting, harrowing, cinematic experience,” and spent $10 million trying to do so. Appellee Presidio Enterprises was apparently similarly affected, for it agreed to pay Warner $65,000 for the right to show the film, sight unseen, at two of its theatres in Austin, Texas.
To make a long story short, the film was a flop. Stung by this turn of events, Presidio flew enraged into federal court, where it somehow managed to persuade a judge and jury that it had been tricked into purchasing a defective product and could collect damages under Texas consumer protection law. Through the vagaries of statutory provisions, Presidio was able to turn its damages of $56,000 into a judgment of more than $500,000. We reverse.