A judge has ordered the estate of author J. R. R. Tolkien can not collect punitive damages against the studio that brought the film trilogy to the cineplex according to the folks over at The One Ring.
Tolkien's heirs said New Line Cinema failed to pay any royalties from the estimated $6 billion they say the films grossed worldwide. The lawsuit is seeking more than $150 million in compensatory damages based on breach of contract, fraud etc..
Via The AP:
Los Angeles Superior Court Judge Lori~Ann Jones also ruled this week that the estate and Tolkien heirs have established a legal basis for the fraud claim against New Line.
As part of that allegation, the lawsuit claims New Line sent millions of dollars to Time Warner Inc.'s AOL, improperly claiming they were for advertising expenses. The lawsuit also claims the studio built production offices and facilities in New Zealand and listed them as expenses for the "Lord of the Rings" films, although the heirs claim they are now being used for other New Line projects.
New Line's attorneys successfully argued that Tolkien's heirs had to demonstrate a "public wrong" under New York law - which governs the contracts - to claim punitive damages if they win at trial. Jones ruled that the heirs' grievance "is clearly seeking to vindicate private wrongs."
New Line now has 10 days to answer the lawsuit. A trial has been scheduled for October 2009.
Stay Tuned to see the studio suits answer the clam...
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