A judge Thursday dismissed a claim for fraud that was part of a lawsuit in which Kevin Costner alleges a production company used his name to sell a film at the Shanghai International Film Festival in 2016 and later took him off the project without compensating him.
The ruling by Los Angeles Superior Court Judge Holly Kendig removes the Oscar-winning actor’s chance to win punitive damages. The judge also said Costner’s attorneys will have to shore up the rest of their complaint, name the correct defendants and add two additional parties as plaintiffs so that the defendants are not subjected later to double or even multiple obligations.
Costner, along with Treehouse Films LLC, sued Kylin Pictures on Oct. 25, alleging breach of contract and fraud. Defense attorneys say the correct defendants are Kylin Pictures International Inc. and Kylin Pictures Inc.
According to the complaint, Treehouse and Beacon Films signed a deal in April 2016 to produce “Shanghai Sojourners,” the story of a Chinese woman who falls in love with a Jewish man during World War II and tries to help him escape the Nazis.
According to the lawsuit, Costner and Armyan Bernstein were set to receive a combined producing fee of $3 million. On top of that, Treehouse and Beacon were to receive a $1 million overhead fee and a share of profits, the complaint alleges.
During the Shanghai International Film Festival last summer, Kylin promoted the film and highlighted the involvement of Costner and Treehouse, resulting in investments in the film. According to the suit, Kylin had already decided to fire Costner and Treehouse, but waited until August to tell them.
In addition to $3.85 million in damages, Treehouse and Costner want the court to declare that they should receive the credits promised and the agreed- upon profit share if the picture is produced.
The judge said the fraud claim failed because Costner’s attorneys could not show Kylin had any duty to the plaintiffs to disclose an alleged intent by the company to later repudiate the agreement. She said the claim was actually one for breach of contract.
Kendig was not convinced after hearing arguments to the contrary by Costner’s lawyer, Steven Renick.
“I’m still not buying this argument,” she said, concluding that the fraud allegation should be dismissed and that Renick has a month to file an amended complaint.
Kylin attorneys maintained — and the judge agreed — that Bernstein and Beacon films are “indispensable parties” who should have been named as co- plaintiffs with Costner and Treehouse so that their clients are not exposed to additional or inconsistent judgments later.
“I’ve seen these things get all snarled up,” Kendig said.
