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Contracts Keyed to Marshall
Locke v. Warner Bros, Inc.
Citation:
57 Cal. App. 4th 354 (1997)Facts
Locke entered into a written agreement with Warner, dated November 27, 1990. The Locke/Warner agreement had two basic components. The first element states Locke would receive $250,000 per year for three years for a non-exclusive first look deal. It required Locke to submit to Warner any picture she was interested in developing before submitting it to any other studio. Warner then had 30 days either to approve or reject a submission. The second element of the contract was a $750,000 “pay or play” directing deal. Unbeknownst to Locke at the time, Eastwood had agreed to reimburse Warner for the cost of her contract if she did not succeed in getting projects produced and developed. Early in the second year of the three-year contract, Warner charged $975,000 to an Eastwood film, Unforgiven. Warner paid Locke the guaranteed compensation of $1.5 million under the agreement. In accordance with the agreement, Warner also provided Locke with an office on the studio lot and an administrative assistant. However, Warner did not develop any of Locke’s proposed projects or hire her to direct any films. Locke contends the development deal was a sham, that Warner never intended to make any films with her, and that Warner’s sole motivation in entering into the agreement was to assist Eastwood in settling his litigation with Locke.
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