Facts

Plaintiff Clemistry Music Inc. and defendant Okanagan Films LLC entered into two agreements for music services in connection with two motion pictures. However, plaintiff's music was not utilized in either subject motion picture.

PLAINTIFF'S CONTENTIONS:
Plaintiff sued defendants for damages under contract and tort theories.

DEFENDANTS' CONTENTIONS:
Okanagan Films claimed it did not breach agreements for music services, individual defendants Paul Hudson and Anna Granucci were not parties to the music services agreements and did not fraudulently induce plaintiff to enter into agreements for music services. Further to extent that plaintiff's music was not utilized in motion pictures, plaintiff's claim for royalties was without merit, and plaintiff's request for injunctive relief was without merit.

Damages

According to defense, plaintiff sought in excess of $800,000 for punitive damages and injunctive relief, inter alia. According to plaintiff, the original complaint sought damages on nine causes of action, including general and compensatory damages on several of those causes of action, only general damages on four causes of action and punitive damages, without stating a requested amount, on one cause of action. Further, plaintiff contended, once the matter was submitted to arbitration, plaintiff's Amended Demand for Arbitration (on which the arbitrator issued his award) sought general and compensatory damages resulting from the alleged breaches of contract and contained no request for punitive damages.

Result

Verdict in favor of defendants. The arbitrator found defendants did not breach agreements for music services, nor did defendants fraudulently induce plaintiff to enter into agreements for music services, nor were any royalties due to plaintiff when plaintiff's music was not used in the subject motion pictures. Plaintiff was ordered to pay Okanagan Films, Paul Hudson and Anna Granucci, as prevailing parties, attorney fees in the sum of $89,670, arbitration fees in the sum of $8,222, and costs in the sum of $2,276 for a total award of $100,168.

Other Information

Post arbitration award in attorney fees motion is pending. Other defendants were voluntarily dismissed from Superior Court proceeding by plaintiff. Superior Court Action compelled to arbitration. Parties stipulated to Independent Film & Television Alliance. According to plaintiff, the Arbitrator found that Okanagan is obligated to pay Clemistry deferred fixed fee compensation and one percent "back end" on each contract, according to the terms of the agreements, but noted that such payment is not currently due. FILING DATE: Sept. 28, 2012.