'Investor sues Terrence Malick' (yikes!)

The words "at least for now" in one of the previous posts were the correct ones regarding the settlement as it seems that it is still the main goal of the lawyers, and that it is only because they are late at reaching this settlement (that is now almost final) that they have proceeded with the first disclosures.

Indeed, counsel for Seven Seas and Sycamore have continued to work diligently to draft a settlement agreement reflecting the parameters discussed by the parties and identified by Judge Peck on November 13th. Since my last news on the negotiations (on December 30), counsel for the parties met and conferred by telephone on January 5th and 9th to discuss open issues. Seven Seas provided final draft language to Sycamore on January 14th, 2014.
Sycamore responded today, January 20th. Counsel for Seven Seas must discuss Sycamore’s final proposed changes with Seven Seas and Andreas Roald.

The parties have resolved almost all open items in pursuit of a settlement agreement. However, Sycamore has insisted that Andreas Roald, who organized Seven Seas, and Donald Rosenfeld, a non-party to the litigation, execute "general, mutual releases" in their personal capacities as part of the proposed settlement agreement. These requests have necessitated Donald Rosenfeld to secure separate counsel to advise him on this matter. If these issues remain unsolved, the parties anticipate "it may be necessary to request a further discussion with Judge Peck on these provisions".

So, in the interim, the parties have exchanged initial disclosures, as required by the courts order that had postponed these disclosures on December 18.

The next update on negotiations should be on January 31 at worst, if a settlement has not occured in the interim.

As it was anticipated by the parties ten days ago, the settlement seems slowed by the simultaneous third party agreements concerning Andreas Roald and Donald Rosenfeld.

The work of the counsels to draft a settlement has continued and seems to be finished on every aspects except a few provisions, presumably the ones that request the simultaneous signing of various general release agreements and mutual release agreements from Roald and Rosenfeld, and that may require the help of Judge Peck, as they evoked ten days ago. At the moment, they are attempting to finalize the language in these provisions themselves, but the counsels of the parties have already jointly indicated today to Judge Peck and Judge Cote, that if they note they are unable to do so, they will contact Judge Peck's chambers next week.

About the release agreements: these separate documents, in which the signatory gives up all claims or all rights on a matter, may be to protect Sycamore and Malick from any future litigation from Roald or Rosenfeld as individuals after the settlement with Roald's company, Seven Seas, the Jersey puppet of Sovereign Films. Roald or Rosenfeld may also release their production rights, as individuals, on Voyage of Time. But also, a very unlikely – but not completely impossible – scenario that can be hinted by the word "mutual" is that the purpose of Sycamore in the request of these releases might be an effort to protect Rosenfeld from being sued by Roald.

Next update, at worst, on February 14, in two weeks.

It is settled!

Update: here is the order discontinuing the case : http://in.derweltse.in/malick/vot.2014.02.07-settlement.pdf

It will be interesting to watch in the coming weeks if another company replace Sovereign Films in the imdb credits. That would mean that the rights have been rebought with the help of another investor.

Excellent news :) Thanks again U4 for taking the trouble and great care in keeping us informed. Who needs press releases! (ha ha).

You thought we had finished with this? But things were too simple: there have been a misunderstanding problem between the lawyers and the Court on the reaching of the settlement, and despite all the appearances and the documents, the closing of the case on Friday was a mistake from the Court.

Indeed counsel for Seven Seas and Sycamore are "still finalizing the draft settlement agreement", and so have not yet settled the litigation. They have reached "a negotiated document" and "expect to file stipulations", which the parties have negotiated, "with the Court this week". For these reasons, the plaintiff, Seven Seas, requests that the Court vacate its February 6th order. To avoid such a misunderstanding, the parties will jointly update the Court as soon as a settlement agreement is executed.

However, we can guess that the conclusion is very near, if, even the Court was confused and made such a mistake...

we can guess that the conclusion is very near, if, even the Court was confused and made such a mistake..

The settlement has been signed on February 18 ... for *REAL* this time ;-)

Even if most of the provisions will be kept secret, here are broadly the terms of the agreement: exceptionnally the Court will retain jurisdiction on the confidential agreement during the next 9 months. This unusual practice is the very idea that allowed the agreement.

During these 9 months, Malick's team (Sycamore) will raise funds to pay Sovereign Films (Seven Seas). At the end of this period, if Sycamore has raised sufficient funds, both parties will fill a joint dismissal of the case. If Sycamore has failed to raised the required funds, the parties may reinstate the action. The 9 months period can also be jointly extended.

Despite the secret of the provisions, we can guess, from the previous negotiations with Rosenfeld and Roald about a simultaneous release that these funds will serve to reacquire copyright and producer rights on Voyage of Time. Rights that will end up, by the terms of the fund raising contract in the hands of the new investors.

The real secret provision is the amount that Seven Seas/Sovereign Films asks for the film. More than the $3.3 million allegedly invested, in order to compensate the interests, and/or the missed investments? Or less because of sums are often overestimated in the complaints?
We also do not know whether Sycamore has already payed a part of the amount.

As an answer to the settlement, the Court accepts to retain jurisdiction, but only if the settlement is endorsed by the Court, which will probably lead the agreement to lose its confidentiality. The parties should answer on Wednesday.


One of the related letters to all this recent matter with the handwritten answer from the judge : http://in.derweltse.in/malick/vot.2014.02.25-settlementletter.pdf

Sycamore and Seven Seas refused yesterday that the Court endorse the settlement to avoid it to become public. So the Court will not watch the settlement execution and the case has been dismissed by the judge.

And if Sycamore does not succeed to raise the funds from investors to reacquire Voyage of Time for them, probably Seven Seas will file a new complaint in November.

PS: We will have to watch the company credits page to see if one or multiple companies replace Sovereign Films. That will mean that the fund raising has succeeded.