Watchmen Lawsuit Pt. 12: More Detail About the Ruling for Fox

By now, it is well known that the judge has ruled in favor of Fox on Claims 1 and 5 in the Watchmen lawsuit. Two useful questions are left unanswered by various media reports: 1) why did Judge Feess reverse his previous position; and 2) what was the specific reason he ruled in this way? The December 24, 2008 order granting summary judgment to Fox provides the answers (a link to the order is featured at the bottom of the post).

Judge Feess provided the following answer to the first question (my emphasis added):

At the hearing on these [summary judgment] motions, the Court advised the parties that it had tentatively concluded that disputed issues of fact preclude a grant of summary judgment for either party. Both sides . . . argued that resolution of the lawsuit ultimately turns on the interpretation of contract terms, a task that is the responsibility of the Court. Having further reviewed the record and the arguments of the parties, the Court concludes that the parties are correct and that the issues presented for summary adjudication can be resolved through the pending motions.

After discussing Fox's relationship with Lawrence Gordon, the judge provided the answer to the second question:

In the Court's view, Gordon's agreement to and execution of the Turnaround Notice indicates a clear understanding that Fox owned important rights in "Watchmen," including, at the very least, a distribution right, and that Gordon was required to comply with the terms and conditions of the buy-out if he wanted to acquire those rights. Because Gordon never paid the buy-out price, he never acquired Fox's rights in "Watchmen," and those rights therefore remain with Fox.

Judge Feess also went a step further in saying that "Warner Brothers exercised its option to acquire Gordon's rights after being place on notice of Fox's claim and having received the documentation upon which this Court bases its ruling. Thus, Warner Brothers cannot argue that its interest in "Watchmen" takes priority over Fox's interest." Ouch.

1. 
   Order re: Cross-Motions for Summary Judgement