Warner Bros. gained a big victory Friday in its authorized battle with its longtime financing companion, Village Roadshow, as a decide agreed to ship the dispute to arbitration.
Village Roadshow has teamed with the studio on quite a few blockbusters during the last 25 years, together with “Joker,” the “Ocean’s” collection, and “American Sniper.” However the relationship foundered when Warner Bros. opted to launch “The Matrix: Resurrections” concurrently in theaters and on HBO Max, together with the remainder of its 2021 slate.
Village Roadshow sued in February, alleging that Warner Bros. had sabotaged the movie’s field workplace income so as to enhance the streaming service. Village Roadshow has additionally alleged that Warner Bros. was transferring ahead with initiatives — together with “Wonka,” a TV collection primarily based on “Fringe of Tomorrow,” and a sequel to “I Am Legend” with Will Smith and Michael B. Jordan — with out participation from Village Roadshow, in violation of their settlement. The corporate sought an injunction that will drive Warner Bros. to abide by the settlement.
In his ruling on Friday, Choose David S. Cunningham held that the problems within the lawsuit are ruled by the contract’s arbitration clause. He additionally denied Village Roadshow’s request for an injunction.
In a press release on Friday afternoon, Village Roadshow stated it will proceed to struggle in arbitration and anticipated to win vital damages.
“It is a case vital not solely to Village Roadshow, however to all content material house owners abused by studios’ self dealing practices,” the corporate stated. “The corporate will show that it’s entitled to all of its requested cures, together with vital damages, for WB’s willful and persevering with breaches of the events’ agreements.”
The assertion additionally stated that Village Roadshow appears ahead to uncovering extra data in discovery, and alleged that Warner Bros. has “labored arduous within the press to obscure their dangerous habits and affect their notion amongst trade stakeholders.”
Warner Bros. has denied that it has violated the agreements. In arguing that an injunction was not wanted, the studio maintained that Village Roadshow faces no imminent menace of hurt.
Village Roadshow’s attorneys have raised issues that it has not been notified about Warner Bros. initiatives in growth which might be primarily based on its co-financed movies. These embody an “Ocean’s” sequel starring Margot Robbie and a Sherlock Holmes TV collection for HBO Max, each of which have been reported by information retailers.
Nonetheless, in a court docket submitting, a Warner Bros. govt denied that there’s a solid or a funds for the “Ocean’s” movie. The studio stated that it’s working with producers to develop the “I Am Legend” sequel, however as but there is no such thing as a script, no funds, no director, no solid, and no greenlight — and subsequently, no obligation to notify Village Roadshow. The studio additionally denied that it’s actively growing different properties to such a degree the place Village Roadshow would wish to be notified.
The studio has additionally stated that it has no present plans to do extra day-and-date releases in theaters and on HBO Max.
