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Litigation Leverage in the Entertainment Industry

In All, Entertainment, Intellectual Property by lowndestechLeave a Comment

By Ahmad El-Gendi

Entertainment deals can often be lucrative for all parties involved.  Unfortunately, sometimes deals go south. When that happens litigation often follows.

Litigators identify and use a party’s leverage to achieve litigation objectives.  For example, in a complex dispute we were engaged in, after a few depositions it became apparent that the opposing party relied heavily on its reputation to acquire clients.  We found our leverage to achieve a favorable resolution for our client.

After using the fear-of-diminishing-reputation leverage as the first step in climbing towards our client’s desired goal, we started talking numbers.  “Litigation leverage” part two in this case was creating a creative damages scenario whereby instead of our previous demands for either the money paid or the money it cost to fix the problem plus late fees, we combined both scenarios to demand reimbursement of the money previously paid to the defendant plus the late fees, which shot the damages up by nearly double the original amount.  Although the plausibility of this damages scenario was uncertain, the mere threat of it provided leverage.

By using this strategically timed two-step leverage tactfully, which resulted in a settlement offer just one week before the final hearing, we were able to secure a victory for our clients in the amount of $385,000 which was 95% of what our client was originally seeking, without being subjected to the uncertainty or expense of a final hearing.  Using litigation leverage effectively helped this client and can help you or your company too.

For more information on litigation basics, click here.

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