Independent video dealers suing Blockbuster and 5 major film stud...
Independent video dealers suing Blockbuster and 5 major film studios are “manipulating” legal system by pursuing suits with same allegations of unfair trade practices in 2 different jurisdictions, Stacey Dore, attorney for Blockbuster and studios, said last week, asking…
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L.A. Superior Court Judge Victoria Chaney to dismiss case. Suit in Cal. is “coordinated effort” with plaintiffs in Tex."to file multiple lawsuits hoping that they will eventually win,” Video Business quoted Dore as saying. As evidence, Dore pointed to Fairness Alliance of Independent Retailers (FAIR) that filed federal and state suits in Tex. in 1999 alleging revenue-sharing agreements Blockbuster had signed with studios represented unfair trade practice. FAIR also is alleged to have paid legal fees and recruited plaintiffs. Richard Frankel, attorney for rental dealers, countered that FAIR paid just $23,000 in legal fees -- less than 1% of total court costs -- and hasn’t been active in case since 2001. Independents lost case in June when U.S. Dist. Judge Edward Prado, Dallas, dismissed suit, ruling there was insufficient evidence that Blockbuster and studios had conspired to block dealers from getting revenue-sharing agreements. Case is now in 5th U.S. Appeals Court, New Orleans. Warner Home Video and MGM settled federal suit for combined $15 million before start of trial. While Cal. case will cover much of same ground as Tex. action, it has 251 plaintiffs vs. 3 in latter.