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Entertainment Law
Breach of Contract
Attorney Fees

Zack Ward v. National Entertainment Collectables Association Inc., Joel Weinshanker

Published: Dec. 7, 2013 | Result Date: Oct. 17, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 2:11-cv-06358-MMM-CW Bench Decision –  $301,849

Court

USDC Central


Attorneys

Plaintiff

Betsy C. Manifold
(Wolf Haldenstein Adler Freeman & Herz LLP)

Randall S. Newman
(Wolf, Haldenstein, Adler, Freeman & Herz LLP)


Defendant

Wilson Antoine

Benjamin O. Aigboboh

Danielle Levine

Matthew Wapner

Thomas Goodwin

Kent R. Raygor
(Sheppard, Mullin, Richter & Hampton LLP)


Facts

In 1983, Zack Ward played the role of Scut Farkus in the movie, "A Christmas Story." His role was the secondary bully character in the film that became a hit. At the time, the contract was silent as to the film producer's right to use his name, likeness, or persona on merchandise or other products based on the film.

Twenty years later, National Entertainment Collectible Association Inc. (NECA) entered into a licensing agreement with Warner Bros. Consumer Products (WB). WB authorized NECA to sell merchandise based on the film. In 2005, WB granted NECA the right to produce and sell a board game based on the film. In 2006, Joel Weinshanker contacted Ward on NECA's behalf to negotiate NECA's use of Ward's likeness on merchandise. They subsequently entered into a licensing agreement, which purportedly granted NECA the exclusive right to use Ward's likeness on its merchandise in exchange for royalty. NECA subsequently produced action figures and games based on the film.

The parties eventually agreed to settle their dispute. Ward then sought in excess of $1.7 million in attorney fees, which defendants opposed. Defendants requested that the court award no more than $42,669 in attorney fees. Next, defendants filed a motion to strike Ward's motion for attorney fees.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that defendants fraudulently induced him to enter into the licensing agreements. Plaintiff also contended that defendants paid to pay him royalties due under the agreement. Further, that defendants continued to use his likeness without his consent. However, the parties ultimately came to an agreement and settled the dispute, leaving only the issue of attorney fees in dispute. With regard to the fee dispute, plaintiff sought fees under the Landham Act, which provided for reasonable attorney fees to the prevailing party. Plaintiff contended that, as the prevailing party, he was entitled to reasonable attorney fees under the Act.

Ward sued the NECA and Weinshanker, alleging claims for promissory fraud, common law fraud, breach of contract, misappropriation of likeness, violation of his right of publicity, and violation of the Lanham Act. Weinshanker was NECA's sole shareholder.

DEFENDANTS' CONTENTIONS:
Defendants contended that plaintiff's request for attorney fees was "excessively outrageous."

Result

U.S. District Judge Margaret M. Morrow calculated the reasonable attorney fees to be awarded under the Act, and awarded Ward's attorneys as follows: $157,912 for Randall Newman and $143,937 for the law firm of Wolf Haldenstein.


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