Cinema Law: The Importance of Finalizing Contracts

by Patricia Millett | Published June 9, 2009

Welcome to “Cinema Law,” MovieMaker.com’s all-new blog where you ask the questions of our resident team of legal experts and, each week, they’ll provide the answers to your production queries. Have a burning question yourself? E-mail it to and your question may just be on next week’s blog! Cinema Law is presented as general information only and is not meant to take the place of professional legal advice.

Q: A screenwriter and I signed a non-disclosure/non-circumvent agreement in late 2007 with the intention to make a movie together, myself serving as producer and bringing $6 million for the budget.

I found an overseas investor, the writer got paid WGA scale ($125,000 plus 14 percent) and as soon as the writer signed the deal with the investor, they conspired to leave me out and started production. But as the writer—a first-time writer-director—was so incompetent, the investor pulled his money out after only one-and-a-half weeks of shooting.

In the meantime, they left me hanging with no compensation. I had an old attorney friend write a demand letter, but they still ignored me, even after I told them I wouldn’t be serving as producer. At that point I was simply asking for a finder’s fee. Yet still nothing, and since I didn’t get compensated, I’m unable to file a complaint at the moment.

Suggestions?

A: Being squeezed out is an all-too-common problem which proves the importance of finalizing contracts before you do the work.

In your case, depending on the terms of your agreement, you may have a claim against the screenwriter for breach of contract. (I’m assuming from your use of the term “non-circumvent agreement” that the writer agreed not to cut you out of any deal for the film.) It is unclear from your question whether your attorney friend sent a demand letter to the screenwriter or just the investor. If you have not made a claim against the screenwriter, you may want to do so.

Be careful in making any announcements that you will not serve as producer, since such statements can be used as an excuse for not paying you. Under California law, another party’s breach excuses your obligation to perform. This legal tenet applies to both sides. Thus, if part of your deal was that you would produce, the writer or investor can claim that you refused to perform as an excuse to not pay you. By the same token, their prior refusal to pay may excuse your obligation to perform.

Unfortunately, there is no easy way to seek redress and it is likely that you will have to file a lawsuit to recover. Ask your attorney friend if he/she can recommend a contingent-fee lawyer who has experience in entertainment matters. If your friend does not have a recommendation, the Beverly Hills Bar Association (www.bhba.org) has a lawyer referral service that may be of help.

Good luck.

Patricia Millett is a Partner at Kinsella Weitzman Iser Kump & Aldisert, a high-profile, L.A.-based entertainment litigation firm, and specializes in commercial and entertainment litigation. She has successfully represented studios, record companies, real estate developers, producers and artists in disputes involving copyrights, rights of publicity, unfair competition, business torts and contractual disputes. In the areas of motion pictures and television, Ms. Millett has advised and litigated cases on behalf of writers, directors, personal managers and motion picture studios.

The answers to legal questions provided by the lawyers of Kinsella Weitzman Iser Kump & Aldisert, LLP ("KWIKA") are for general education and information purposes only, and are not legal advice or legal opinions. The information provided in the articles is not intended to create a lawyer-client relationship between KWIKA and you. The opinions expressed in the postings are the opinions of the authors and do not reflect the opinions of KWIKA, its employees or agents.

COMMENTS | POST A COMMENT

Comment by California Animation College on 6/25/09 at 3:03 am

Be careful in making any announcements that you will not serve as producer, since such statements can be used as an excuse for not paying you

Comment by new horror movies on 6/30/09 at 11:14 am

This is very useful. I had a friend who was in the same situation, one of his investors opted out after two weeks and my friend got back a very small amount of money.

Comment by Jane Marie on 7/16/09 at 2:48 pm

This post is an informative and knowledge providing post, it is really important to the world to have knowledge about finalizing Contracts in general and especial in movie industry

Comment by Sergio on 7/21/09 at 9:28 am

Thanks for such interesting article. In our country this area of the law is not developed yet. But your experience will be useful to us.
Yours faithfully, Sergio Kotigliani

Comment by Jean Men on 7/27/09 at 2:32 pm

Be extremely careful when drawing these up.  Using a lawyer is usually the best bet even if they cost a lot.

Comment by San Diego Wedding on 7/27/09 at 2:34 pm

great point.  no getting screwed by the man!

Comment by Shoe Italian on 7/27/09 at 2:35 pm

Very important stuff.  You need to watch your back in these situations.

Comment by Insurance Leads on 9/02/09 at 8:49 am

I’ve learned a lot from your post. Thank you. It really is important to finalize the contract before actually starting the work.

Comment by personal injury lawyer houston on 9/05/09 at 12:24 am

It is really important to the world to have knowledge about finalizing Contracts in general and especialy in movie industry.

Comment by Guia Hungria on 11/03/09 at 7:29 am

Finalizing the contract before you start the work is the only real way to avoid being squeezed out, not paid for your services, or any other problems later…

Comment by Alice on 1/01/10 at 4:02 am

Behöver du ett weblån eller ett SMSlån så skall du besöka oss, här hittar du bra information om alla svenska långivare!

Comment by wedding maid of honor speech on 1/04/10 at 6:27 am

Нour post was very informative for me. It really is important to finalize the contract before actually starting the work. Thank you.

Comment by kemal22 on 1/04/10 at 9:42 pm

Very important stuff.  You need to watch your back in these situations.

Comment by Altin Fiyatlari on 1/06/10 at 10:06 pm

Very important stuff.  You need to watch your back in these situations.

Comment by iddaa on 1/07/10 at 10:30 pm

Very important stuff.  You need to watch your back in these situations

Comment by Money Maker ideas on 1/10/10 at 1:44 am

“Cinema may have always been an international language, but the law remains largely defined by territorial boundaries. In these circumstances, the country-by-country essays in this remarkable anthology considering how the law is represented and how the law shapes cinema in Asia are both necessary and original.

Comment by Naruto Shippuden on 1/12/10 at 6:30 am

Informative review! yes our country have no perfect law about this issue but we have to maintain this. Thanks a lot for your knowledgeable article

Comment by pimp profile on 1/13/10 at 12:32 am

This is seems to be fantastic..I’ve not heard any laws about people kissing and cuddling in the back row. At least their not doing it in the front row.

Comment by Reiki and Chakras on 1/31/11 at 10:08 am

Good stuff in regards with finalizing contract for your services

Comment by sniper22 on 9/05/11 at 12:08 pm

thank you a lots
موقع زفات
مركز تحميل

Comment by sniper22 on 9/05/11 at 12:09 pm

thank you a lots
منتدى زفة العروس
موقع زفات

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