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Contracts
Breach of Contract
Breach of the Covenant of Good Faith and Fair Dealing

David Bergstein, et al. v. Aramid Entertainment Fund Ltd., et al.

Published: Aug. 31, 2013 | Result Date: Aug. 5, 2013 | Filing Date: Jan. 1, 1900 |

Case number: BC487059 Bench Decision –  Dismissal

Court

L.A. Superior Central


Attorneys

Plaintiff

Vartanoush Defterderian

Andrew C. Spitser

Lucia E. Coyoca

Eric J. Bakewell
(Willkie Farr & Gallagher LLP)

Logan M. Elliott

Christopher A. Elliott

Alex Weingarten
(Wilkie Farr)


Defendant

John R. Loftus
(Stroock & Stroock & Lavan LLP)

Crystal Y. Jonelis

Charles E. Weir
(Manatt, Phelps & Phillips)

Daniel Rozansky
(Stubbs Alderton & Markiles, LLP)


Facts

David Bergstein, a movie financer, and Aramid Entertainment Fund entered into a settlement, which included an alleged waiver of claims in the future that might be related to ThinkFilm. Bergstein's companies entered involuntary bankruptcy in 2010, and Bergstein sued Aramid, David Molner and Screen Capital International, alleging breach of contract, and breach of the implied covenant of good faith and fair dealing for pursuing litigation against Bergstein.

Contentions

PLAINTIFF'S CONTENTIONS:
Bergstein contends that defendants damaged his reputation, decreased the value of his film assets, hindered his ability to agree to other movie deals, and violated the terms of the alleged waiver regarding ThinkFilm. In addition, Bergstein argued that David Molner engaged in making negative statements to injure his business.

DEFENDANT'S CONTENTIONS:
Defendants argued that plaintiffs' allegation should be dismissed under California's anti-SLAPP statute, as the alleged conduct was protected and plaintiffs could not prove that any harm occurred due to anything other than Aramid's protected litigation conduct or arising out of the involuntary bankruptcy petition.

Damages

Bergstein sought $50 million.

Result

The court dismissed the case on defendants' anti-SLAPP Motion, after determining that the alleged conduct fell under the litigation privilege, and federal bankruptcy law preempted the case.

Other Information

Plaintiffs have filed a motion for reconsideration.


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