New Line Snagged with $125k Sanction: Peter Jackson Continues Push
New Line has been hit with a court ordered sanction of $125,000 for failing to produce documents in standard, due diligence discovery. Peter Jackson's attorneys may soon have the right to personally review New Line's documents including email if an audit is not delivered within 21 days.
This does not bode well for Jackson to be offered the helm of "The Hobbit". I still firmly believe that he is the ONLY choice and that the whole project should be attached to him, even if they have to sell the rights. This whole situation is ridiculous and I am seeing it over and over again - it has now migrated over to the 3D movie industry too with accusations of debts being owed and 'Pump and Dump' stock price manipulations (see this week's posts). Greed is destroying Hollywood slowly but surely just when cooperation should be at its best. With Raimi stating he has nothing to do with "The Hobbit" (dated I know, but still on the record), I fear for the outcome of the whole mess.
It certainly seems that New Line has something to hide. If they did indeed miscalculate revenue from 2001's "The Fellowship Of The Ring", then they are writing their own epitaph right now. If they came clean, all could be solved within days. Don't be shy Shaye.
UPDATE: Sep 24, 2007
U.S. Magistrate Steven Hillman said in the ruling that New Line may have destroyed documents and failed to search for documents and emails it was required by the court to produce, and cited a number of examples in which the searches were "haphazard." Jackson's suit against New Line alleges that he has not received proper accounting of income from "The Lord of the Rings: Fellowship of the Ring." (Variety)
