False Representation vs. Breach of Contract in Film Financing – Who Wins?
Investment in film has the potential for high reward but is always combined with high risk. Little or no collateral, lack of liquidity, changing consumer demand, market competition and over zealous promises made by the filmmakers all contribute to the risk factor. Investors must rely on strong market analysis, distribution pre-sales and the integrity of the filmmakers who are making the proclamations in the prospectus. If any one of these elements is fraudulent, that can mean disaster for the investor and potential violation of contract elements.
Economic Damages: A Case Study – The Actor
The large majority of lawsuits involving individuals in the entertainment industry revolve around lost wages or fees.
The question one should ask in order to determine the value of damages in these cases is this: how do you best determine whether a particular individual should be categorized into that rare group of earners? In other words, how do you determine whether the claim is purely speculative, or if it can be proven within a reasonable degree of certainty?