Regency Entertainment, the primary financier of Warren Beatty’s Rules Don’t Apply, is suing the fillmmaker for breach of contract, claiming he and others have not repaid the P&A losses the company says he was obligated to do per their contract after the movie failed to connect at the box office last year.
The suit (read it here), filed today in Los Angeles Superior Court, seeks at least $18 million in damages from a company, Tatira 2, set up by Beatty to make the film, as well as eight other companies including RatPac and Worldview who made similar deals with Regency Entertainment. Regency says none have repaid their percentage of the shortfall and are seeking at least $18 million in damages.
“In the event of a P&A Shortfall, each of the Guarantor Defendants is separately and individually obligated under its respective P&A Shortfall Guaranty to pay Regency for its share of any P&A shortfall in an amount corresponding to each Guarantor Defendant’s percentage share in the Picture,” the suit states. “Further, in the event a Guarantor Defendant does not timely pay its Guaranteed Obligation under its P&A Shortfall Guaranty, any unpaid portion accrues interest.
The film was released by 20th Century Fox in Thanksgiving Week 2016. It made $3.7 million at the global box office; according to the suit, the film cost $31.1 million with P&A included.
The lawsuit is seeking a jury trial on two breach of contract claims.