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

76 F. Supp. 3d 756, 2014 U.S. Dist. LEXIS 175991, 2014 WL 7330911
CourtDistrict Court, N.D. Illinois
DecidedDecember 22, 2014
Docket13 C 2690
StatusPublished
Cited by5 cases

This text of 76 F. Supp. 3d 756 (Merry Gentleman, LLC v. George & Leona Productions, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merry Gentleman, LLC v. George & Leona Productions, Inc., 76 F. Supp. 3d 756, 2014 U.S. Dist. LEXIS 175991, 2014 WL 7330911 (N.D. Ill. 2014).

Opinion

Memorandum Opinion and Order

GARY FEINERMAN, United States 'District Judge

. Merry Gentleman, LLC, brought this suit against Michael Keaton and his loan-out company (together, “Keaton”), alleging breach of the parties’ directing services contract for The Merry Gentleman, a film produced by Merry Gentleman and directed by Keaton. Doc. 1. The court denied Keaton’s Rule 12(b)(6) motion to dismiss. Docs. 21-22 (reported at 2013 WL 4105578 (N.D.Ill. Aug. 14, 2013)). Keaton then answered, counterclaimed against Merry Gentleman for breach of contract, and asserted third-party claims for tortious interference with contract against Paul Dug-gan, Tom Bastounes, and Ron Lazzeretti for their alleged involvement in Merry Gentleman’s alleged breaches. Doc. 24. Keaton later dropped Lazzeretti and Bas-tounes as third-party defendants, Docs. 46, 52-53, and Bastounes has since executed a declaration averring his belief that Merry Gentleman’s claims against Keaton are meritless, Doc. 75-13 at 1-6.) The court recently denied Keaton’s Rule 41 motion to dismiss Merry Gentleman’s claim. Docs. 65-66 (reported at 2014 WL 3810998 (N.D.Ill. Aug. 1, 2014)).

Trial has been set for March 2, 2015. Doc. 61. Now before the court are three motions for summary judgment: Keaton’s on Merry Gentleman’s claim, Doc. 71; Merry Gentleman’s on Keaton’s counterclaim, Doc. 69; and Duggan’s on Keaton’s third-party claim, Doc. 67. Keaton’s motion is granted, and the other two motions are entered and continued, though Keaton will be required under Rule 56(f) to show why summary judgment should not be granted on his counterclaim and third-party claim on the same ground on which he has prevailed on Merry Gentleman’s claim.

Background

Because only Keaton’s summary judgment motion will be resolved here, the following facts are set forth as favorably to Merry Gentleman, the non-movant, as the record and Local Rule 56.1 permit. See Hanners v. Trent, 674 F.3d 683, 691 (7th Cir.2012). On summary judgment, the court must assume the truth of those facts, but does not vouch for them. See Smith v. Bray, 681 F.3d 888, 892 (7th Cir.2012). That said, many of the facts are undisputed, either by agreement or because the fact simply reflects a historical account of what a person said or what a document states.

In 1997, in their first significant foray into the movie business, Lazzeretti and Bastounes produced and released The Opera Lover; the film was not a success, grossing less than $10,000 after opening in only two theaters. Doc. 79 at ¶¶ 6-7. Undeterred, Lazzeretti wrote another screenplay, this one for The Merry Gentleman. Id. at ¶ 6; Doc. 79-1 at 3, ¶ 1. Bastounes [759]*759liked what he read, and so the two men arranged a luncheon to recruit potential investors for the film, which had an estimated budget of roughly $3 million. Doc. 79 at ¶ 8; Doc. 79-1 at 3. Duggan, a hedge fund manager with no movie experience, was one of the invitees; he, along with Bastounes and another partner, eventually agreed to produce the film. Doc. 79 at ¶¶ 9-10, 13-14. To that end, they formed Merry Gentleman as an Illinois limited liability company in December 2004. Id. at ¶ 11.

Keaton was slated to star in the film and Lazzeretti to direct it; when Lazzeretti fell ill in December 2006, Keaton offered to step in and direct the film himself. Id. at ¶ 15. In February 2007, Merry Gentleman and Keaton executed a Directing Agreement, which set Keaton’s compensation for his directing services at $100,000. Id. at ¶¶ 16-17. Filming ran from March to April 2007 in Chicago. Id. at ¶ 17. The Directing Agreement incorporated by reference the DGA (Director’s Guild of America) Basic Agreement, which required Keaton to deliver a first cut of the film to Merry Gentleman six (ten, according to Keaton) weeks after the close of principal photography. Doc. 94 at ¶¶ 103-04. Keaton edited and assembled the film in California, delivering his first cut on August 2, 2007 — nearly fifteen weeks after filming had closed and well after the deadline. Id. at ¶ 105. Dissatisfied with the first cut, Merry Gentleman began cutting its own version of the film (the parties call this the “Chicago Cut”) on or about August 7, 2007, while Keaton continued to refine his “Director’s Cut” in California. Id. at ¶ 109.

Merry Gentleman did not attempt to sell the rights to the film before it was made; instead,'adopting a strategy with “inherent risks,” Doc. 79 at ¶ 67, Merry Gentleman planned all along to submit the film to the Sundance Film Festival, “the largest and most prestigious independent film festival in the United States,” in the hopes of selling it there, id. at ¶¶ 27-28. In Fall 2007, Merry Gentleman completed the film in time to submit it for the January 2008 festival. Id. at ¶29. Merry Gentleman chose to submit the Chicago Cut, not the Director’s Cut, to Sundance. Id. at ¶ 29. Beating long odds, the film was one of only 121, out of more than 3,600 submissions, selected for screening at the festival. Id. at ¶¶ 30-31.

Section 12 of the Directing Agreement forbade Keaton from making “in any communication (whether written or oral) to any third party ... any reference to [Merry Gentleman], the Screenplay, the Picture, this Agreement or any related matters.” Doc. 94 at ¶ 114. Yet when Keaton learned of the Chicago Cut’s submission to the festival, he informed Sundance’s director that he would attend the festival only if his Director’s Cut, not the Chicago Cut, were shown. Id. at ¶¶ 115-16. And so it was the Director’s Cut, not the Chicago Cut, that ultimately premiered on January 18, 2008 at the Eccles Theater, the festival’s largest venue. Doc. 79 at ¶ 31.

The film received positive reviews, including from USA Today, The Hollywood Reporter, and Variety; one critic called it “[a]n impressive directorial debut by” Keaton that “enthralled a Sundance audience and should stir others.” Id. at ¶¶ 32-35. Under the Directing Agreement, Keaton was required “to render reasonable publicity and promotional services” for the film, Doc. 94 at ¶ 118, and he in fact “participated in every press appearance requested of him at Sundance,” Doc. 79 at ¶ 36. Nevertheless, and although Merry Gentleman had hired a top talent agency, Creative Artists Agency, to attempt to sell the film’s distribution rights at Sundance, the film failed to land a distribution deal at the festival. Id. at ¶¶ 37, 45. This was not [760]*760unusual in the “highly selective” market for independent films that year; many films shown at Sundance that year, including movies starring Robert DeNiro, Tom Hanks, John Malkovich, and Amy Adams, also failed to sell at the festival. Id. at ¶¶ 38^0. Duggan — -who is among Merry Gentleman’s members and principal investors and who, according.to Merry Gentleman and Duggan himself, now exercises full control over Merry Gentleman and directs its efforts in this litigation, Doc. 58 at 5; Doc. 58-1 at 7-9 — admitted that he knew of nothing that Keaton did at Sun-dance that prevented the film from being sold. Doc. 79 at ¶ 41.

After Sundance, Merry Gentleman eventually found domestic, international, and home video distributors. Id. at ¶ 47. As is customary, both Keaton and Merry Gentleman made further changes to the film, which was released in May 2009 to generally positive reviews, including from Roger Ebert, the

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76 F. Supp. 3d 756, 2014 U.S. Dist. LEXIS 175991, 2014 WL 7330911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merry-gentleman-llc-v-george-leona-productions-inc-ilnd-2014.