Merry Gentleman, LLC v. George & Leona Prods., Inc.

Facts

P, a production company, produced The Merry Gentleman, a motion picture that Michael Keaton (D) directed and in which he starred. D entered into both an acting services agreement and a directing services agreement with P. D's responsibilities under the directing services agreement was to deliver a 'first cut' of the film. D declined the services of an editor who could review the daily film footage with him. Nor did D use the editing facilities that P had set up for him in Santa Monica, California. After shooting concluded, D elected instead to go fly-fishing for a period of weeks in Bozeman, Montana. P responded by setting up editing facilities in Bozeman, which D used periodically, leaving the selection and editing together of the 'best scenes' to subordinates. D submitted his first cut of the film behind schedule, in August 2007. P found the first cut 'unsatisfactory,' a sentiment with which D agreed. P allowed D to make a second cut; at the same time, and without D's knowledge, P worked to prepare its own cut with the intention of ultimately proceeding with whichever turned out to be the better version. P chose to submit its own cut, rather than D's second cut, to the Sundance Film Festival. Sundance selected The Merry Gentleman to be premiered at its largest theater, the Eccles Theatre, a prestigious opportunity often portending commercial success. D approached Sundance personnel and informed them that unless Sundance screened his version of the film, he would not appear at the festival. Sundance notified Merry Gentleman that the film would not be shown unless Keaton appeared. P had invested over $4 million in the film. P and D signed a Settlement Agreement and Release in which P agreed that D's version of the film would be shown at Sundance. P and D released 'any and all claims' against the other  'arising from or relating to any Contracts in respect of or relating to the Picture, the provision or performance of directing ... by [d] ... up to the date of this Agreement.' Both parties also agreed to comply with their obligations under their existing directing services agreement. D chose music for the Sundance screening that exceeded the pre-determined budget, and D insisted that his selections were 'in' and refused any further discussion. D also refused to cooperate with key members of the production and marketing teams with whom he had disagreements. D's cut premiered at Sundance on January 18, 2008. Production delays pushed the release date back to May 2009. The film was well received by critics, including Roger Ebert. The U.S. box office was less than $350,000. D made a promotional appearance on ABC's Good Morning America in which he wore sunglasses and looked away from the screen during the showing of a clip of the film and stated that he 'hadn't even seen the film for a while' after being asked by host Robin Roberts about the plot. P sued D alleging D breached the directing services agreement.  D moved to dismiss.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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