Out-of-sequence instructions cause $70M jury verdict reversal

A superior court judge Tuesday set aside a jury's $70 million verdict in favor of the creators of "Columbo," giving new life to a long-running distribution fees battle over the TV series.

A jury found Universal City Studios LLC wasn't contractually allowed to deduct $162 million for distribution fees in its profits sharing deal with plaintiffs Foxcroft Productions Inc. and Fairmount Productions Inc. The makers of the iconic "whodunit" crime drama were each awarded about $35 million in a judgment issued in November by Los Angeles County Superior Court Judge Richard J. Burdge Jr.

But there was just one more thing, the defense argued.

The court instructed the jury out of sequence in the multi-phase trial in a way that unfairly weighted deliberations in the plaintiffs' favor, they claimed, an error egregious enough to necessitate a new trial.

In an order issued earlier this week, Burdge acknowledged the out-of-sequence instructions as an error. He granted Universal's motion for a new trial as to distribution fees though he denied a new trial on the statute of limitations.

Hueston Hennigan LLP, counsel to Universal City Studios, celebrated the court's ruling as a correction of the record in a statement Wednesday. Foxcroft Productions Inc. v. Universal Studios, LLC BC683206 (L.A. Superior Court, filed Nov. 14, 2017).

"The ruling vindicated Hueston Hennigan's trial strategy, which recognized jurors' ingrained predisposition against studios in profit participation disputes and positioned the case from the start for ultimate determination by the court," the firm said in its statement.

Plaintiffs' counsel Alton G. Burkhalter vowed to appeal the reversal Wednesday, declaring it a "rare and disturbing change."

The managing partner of Burkhalter Kessler Clement & George LLP said he fought at trial for more jury instructions that would have avoided the cited issues, adding he went on record to note the "invited error."

"This is the same trial in which a jury deliberated and issued a ruling within 90 minutes, 12-0 in our favor," Burkhalter said.

Nonetheless, he expressed confidence that a de novo appellate review would set the record straight.

"Columbo," starring Peter Falk, first aired for seven seasons from 1971 to 1978 then again from 1988 to 2001.