Eisner, LLP secured a unanimous 12–0 jury verdict for client Library Rights Company (UK) Ltd. (LRC) in the first phase of trial in its long-running profit participation dispute with Content Partners LLC, CP IEG Holdings LP, and GKF Distribution LP. The case concerns contingent purchase price rights valued up to $13 million tied to the films “Ali,” “Gangs of New York,” and “Traffic.”
Phase I of the trial, held in Los Angeles Superior Court, focused on whether the assignment of the contingent purchase price rights to LRC was valid and effective. After a week of testimony, the jury returned its verdict on September 22, finding that LRC acquired the seller’s contingent purchase price rights to the three films under a 2004 stock purchase agreement. The finding gives LRC standing to pursue its claims for breach of contract, breach of the implied covenant of good faith and fair dealing, money had and received, and intentional interference with contract.
The jury also credited the written confirmation of a court-appointed German insolvency administrator that LRC held the rights, over the defendants’ position that the rights belonged to no one. The defendants never identified any other party who held them. The case now proceeds to Phase II, which will address LRC’s request for damages of $13 million and is set to begin October 13.
The Eisner team representing LRC was led by Partner Jeremiah Reynolds and Senior Counsel Lena Cohen and included Associate Elaine Li.
