Brand
We mean business
Comprehensive legal services for businesses
in New Jersey and New York
Best Lawyers | Best Law Firms | U.S.News & world report | 2021
Richard J. Lambert was named by Best Lawyers® as a 2021 Corporate Law “Lawyer of the Year.”

Best Lawyers® is the oldest and most respected peer-review publication in the legal profession. Only one lawyer in each practice area in a given community is honored as “Lawyer of the Year.”

top-contextual
comprehensive legal services for businesses

Miramax claims Warner Bros. has breached the UCC

Miramax LLC is currently involved in a law suit against New Line Cinema Corporation and Warner Brothers Entertainment Inc. over Peter Jackson’s newest foray into Tolkien’s Middle-earth. Miramax initially acquired the film rights to Tolkien’s work back in the ’90s. They relinquished the rights to New Line Cinema through a signed agreement. Miramax is claiming that they were owed royalties on the subsequent Hobbit movies based on the agreement signed back in 1998.

The agreement states that Miramax would be entitled to 5 percent of the gross from each initial motion picture based on each book. According to Miramax, Jackson’s recent Hobbit trilogy is one story told in three films, meaning that they are owed 5 percent of the gross from the subsequent Hobbit movies. Miramax claims that Warner Brothers is breaking an obligation of good faith that is implied in the Uniform Commercial Code.

§ 1-304 of the UCC maintains that parties involved in a contract must not injure each other’s entitlement to gain from the contract. This is to prevent underhanded business deals in commercial transactions. The UCC prevents one party from engaging in shady practices to avoid giving the other party its fair share.

In the case of the Hobbit films, Miramax must prove that they have been denied their fair share in order to use the UCC in their defense. If they are successful, they may earn the additional 5 percent of gross receipts from the last two installments in the Hobbit trilogy. But this provision applies to all business deals and cannot be ignored. The UCC attempts to maintain and encourage fair dealings in all business transactions. It is the language of business, and you must understand it to succeed.

Source: Mondaq, “The Hobbit: an unexpected lawsuit – breach of contract,” Sarah Hoffman, Jan. 17, 2014

Office Location

Dunn Lambert, LLC
1740 Broadway, 15th Floor
New York, NY 10019

Paramus Law Office Map

Dunn Lambert, LLC


New York Law Office Map


Phone: 551-228-2690
Fax: 201-957-0874

Phone:
Fax:
Best Lawyers | Best Law Firms | U.S.News & world report | 2021

GET ANSWERS from a firm
with a sense of business.

Archives

Review US
FindLaw Network