The Guild’s Legal Services Department is always prepared to vigorously defend the rights of writers. Last year, as the result of successful arbitrations, the Guild won nearly two million dollars in awards for writers. We thought it would be useful to present examples of recent arbitration awards won by the Guild in the latter part of 2009. These case descriptions are provided for informational purposes and do not necessarily predict the outcome of any other case as the facts of each case are unique. If you believe you have a potential claim you should immediately discuss your situation with a Guild representative. The Legal Services Department can be reached at 323-782-4521.

1. Company Ordered to Make Television Sequel Payments

Problem: A writer of a television motion picture was entitled to separated rights under the MBA. The network ordered a sequel, but the writer was not offered an opportunity to write it, although he was paid a below minimum sequel payment at the time the sequel was produced.

Action: The Guild took the matter to hearing and an arbitrator concluded that the company violated MBA Article 16.B.2.b* when it failed to offer the writer the opportunity to write the sequel at no less than what he was paid to write the original.

Award: The arbitrator ordered the company to pay the writer the difference between the amount he was paid on the original movie and the below minimum payment he actually received. The arbitrator also ordered the company to pay additional pension and health fund contributions plus interest at the MBA rate on all amounts due.

2. Company Ordered to Comply with Credits Procedures and Pay Damages

Problem: The company failed to submit a Notice of Tentative Writing Credit (“NTWC”) in connection with a theatrical motion picture and accorded the writer no on-screen credit. Instead, the company gave sole “Written by” credit to an executive producer on the film. While the company later changed the on-screen credits, it continued to refuse to submit a proper NTWC and to give the Guild the literary material necessary to conduct a proper credit determination.

Action: The Guild took the matter to hearing and an arbitrator noted that the company had repeatedly violated the MBA over a substantial period.

Award: The arbitrator ordered the company to submit a revised NTWC that complied with the MBA, to provide the Guild with all literary material for the film and to comply with all other procedures necessary for the Guild to make its final credit determination. The company was also ordered to refrain from releasing, exhibiting or distributing the film until the credits were finally determined, to recall and correct any existing prints of the film on which the on-screen writing credits were incorrect, and to purchase a half-page ad in Daily Variety or The Hollywood Reporter apologizing to the writer. The arbitrator also ordered the producer to pay substantial damages to the writer and to the Guild.

3. Company Ordered to Pay Guaranteed Compensation to Writers

Problem: A writer negotiated a personal services contract providing for guaranteed compensation for first draft and a polish on a theatrical project. The writer completed both steps, but was only paid for the first draft. The company claimed it never received a polish from the writer. The company alternatively argued that even if delivery was effective, it was late. The company further argued that even if the writer had delivered the polish to the producer attached to the project, he violated his agreement by not delivering directly to the company.

Action: The Guild took the matter to hearing. After hearing the evidence, the arbitrator decided that the writer effectively delivered the polish. The arbitrator also rejected the company’s lateness argument, noting the producers had never expressed concerns about the timeliness of delivery and the company had itself failed to comply with the relevant time provisions of the agreement.

Award: The arbitrator ordered the company to pay the writer the remaining compensation due, plus full MBA interest.

4. Company Ordered to Pay Credit Bonus

Problem: A writer’s agreement on a feature project called for a substantial bonus upon receipt of sole “Screenplay by” credit. The Guild determined credits and accorded the writer sole “Screenplay by” credit. The company refused to pay the bonus, arguing that the film was not finished and that it intended to seek to reopen the credits at some point in the future.

Action: The Guild took the matter to hearing, where the arbitrator noted that the company had initiated the credit determination process and was bound by the result. Although the MBA provides that credits may be reopened where “material” changes are made to the script after a credit determination, the company had neither submitted additional literary material nor requested that credits be reopened.

Award: The arbitrator therefore deemed the credits final, and ordered the company to pay the bonus, plus MBA interest.

5. Company Ordered to Pay Residuals and Damages for Failure to Obtain a Valid Distributor’s Assumption Agreement

Problem: A writing team was hired by joint-venture MBA signatory companies to write on a television motion picture project. The project was produced and a non-signatory company acquired the distribution rights and released the picture on DVD without signing a valid Distributor’s Assumption Agreement.

Action: The Guild took the matter to an arbitration hearing and an arbitrator determined that a valid Distributor’s Assumption Agreement should have been submitted to the Guild.

Award: The arbitrator ordered that the Guild be assigned the right to receive all moneys owed to the signatory companies by any third party, until the unpaid residuals and accrued MBA interest were paid in full. The arbitrator also ordered the signatory companies to pay the Guild damages for their failure to obtain an MBA assumption agreement. Finally, the Guild was also awarded damages for the signatory companies’ failure to provide the MBA-required financial reports.

6. Writers Awarded Residuals and Late Pay Interest

Problem: A writer was hired to provide writing services in connection with twelve episodes of a made for basic cable television series. The writer received sole “Written by” and “Created by” credits for each of the episodes. The company paid initial compensation, but failed to report or pay for any reuse of the series.

Action: The Guild took the matter to hearing and an arbitrator determined that unpaid residuals were due and that the company had failed to comply with its reporting requirements under the MBA.

Award: The arbitrator ordered the company to pay the writer residuals, including creator’s series sequel residuals. The arbitrator also ordered the company to provide the Guild with full and accurate records pertaining to all telecasts of any episode of the series, and awarded damages for the company’s breach of its reporting obligations to date. The arbitrator ordered that the company would be responsible for the payment of the residuals due based on the provided information once those reports came in. Finally, the arbitrator also ordered that the company make appropriate contributions to the pension and health funds on the amount owing, plus MBA interest on all amounts due.

_______________________

* MBA Article 16.B.2.b provides in relevant part: "The writer(s) of the first MOW must be offered the opportunity to write the first MOW sequel at no less than he/she was paid to write the first MOW, subject to the writer's availability within a period reasonably proximate to the date on which writing services are to commence. As to any MOW sequel beyond the first sequel, the writer(s) of the first MOW must be offered the opportunity to write such MOW sequel at not less than the amount he/she was paid to write the immediately preceding MOW sequel unless the writer(s) did not receive sole teleplay credit (pursuant to Television Schedule A) on the immediately preceding MOW sequel. The requirement set forth in the preceding sentence is also subject to the writer's availability within a period reasonably proximate to the date on which writing services are to commence."