New York law will take precedence over Californa’s in Melrose 2 financiers’ lawsuit against Paramount Pictures and DW Studios, Judge Michael Linfield has ruled. Because New York law doesn’t recognize redundant claims on matters based on the same evidence, Judge Linfield dismissed Melrose 2’s claims under California law of breach of implied covenant of good faith and fair dealing as well as unfair completion. “These allegations are no different than the allegations underlying plaintiff’s breach of contract claim and plaintiff has alleged that each of these duties are contractual obligations governed by the agreement,” Linfield wrote in his ruling. Linfield gave the Melrose 2 investors 20 days after a July 19 hearing to amend and resubmit their claim of fraud in the case. Melrose 2 filed suit in November 2011 seeking to recover profits from its nearly $375 million investment in 29 films produced by Paramount and DW Studios, formerly known as DreamWorks and then part of Paramount. The movies include Mission Impossible 3, Charlotte’s Web, Dreamgirls, Flags of Our Fathers and all three Transformers films, among others.
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