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August 25, 1999 09:45
Barry K. Rothman Announces Filing of Lawsuit by Menahem Golan Against 1st Miracle and Anthony J. Cataldo
LOS ANGELES--(BUSINESS WIRE)--Aug. 25, 1999--On Aug. 18, 1999, Belfair International Ltd. and Menahem Golan, co-founder of Cannon Films, filed a complaint in the Los Angeles Superior Court, case number BC 215372 against the publicly traded company 1st Miracle Group Inc., (OTC BB:MVEE) (OTC BB:EINI), its wholly owned subsidiary, Magic Entertainment Inc., its Chief Executive Officer Anthony J. Cataldo, and its counsel Pinchas Perry, whereby Belfair International and Golan are asserting claims for no less than $7 million.
The dispute involves claims arising out of 1st Miracle Group and Magic Entertainment's allegedly wrongful termination of Belfair International and Golan's employment contract whereby Golan was to act as Magic Entertainment's co-chairman and co-chief executive officer for a period of five years. The agreement provides that Magic could only terminate the agreement for cause, whereby cause is limited to misappropriation of Magic's funds by Golan.
According to the complaint, 1st Miracle and Magic also failed to pay Belfair International and Golan Executive Producer and Producer compensation on three films "Speedway Junkie," "Grizzly Mountain" and "After Sex."
Additionally, the dispute involves claims of fraudulent conduct in connection with 1st Miracle Group and Magic Entertainment's allegedly fraudulent inducement of Belfair International and Golan to sign a subsequent three year consulting agreement with 1st Miracle which agreement was also wrongfully terminated by 1st Miracle.
Belfair International and Golan are asserting causes of action against 1st Miracle Group and Magic Entertainment for Breach of Contract (two counts), Wrongful Termination, Breach of the Implied Covenant of Good Faith and Fair Dealing (two counts), Rescission of Contract, Fraud, Negligent Misrepresentation, Intentional Interference with Economic Advantage, Defamation, Unjust Enrichment, Intentional Infliction of Emotional Distress, Negligent Infliction of Emotional Distress, Declaratory Relief, Accounting, and for a Permanent Injunction enjoining and restraining 1st Miracle and Magic Entertainment from producing any television or motion picture which does not afford Producer or Executive Producer credit to Belfair International and Golan.
Furthermore, the dispute alleges claims against 1st Miracle's CEO, Cataldo, arising out of Cataldo's allegedly wrongful interference with Belfair International and Golan's employment contract and his allegedly fraudulent inducement of Belfair International and Golan to sign the three year Consulting Agreement.
Also, the dispute involves Cataldo's allegedly wrongful interference with a contract entered into between 1st Miracle Group and Millennium Films for the production, financing and distribution of a motion picture based upon the screenplay "Alicia's Book," whereby Golan was to co-produce the motion picture "Alicia's Book" for a producer's fee of $250,000.
The complaint asserts causes of action against Cataldo for Fraud, Intentional Interference with Contractual Relations, Intentional Interference with Economic Advantage, Negligent Misrepresentation, Declaratory Relief, Negligent Infliction of Emotional Distress, Intentional Infliction of Emotional Distress, Unjust Enrichment, and Defamation.
The dispute also asserts claims against 1st Miracle Group's counsel, Perry, arising out of an earlier partnership between Golan and Perry which acquired the rights to the screenplay "Alicia's Book" and Perry's alleged interference with the 1st Miracle/Millennium contract providing for Golan and Perry to co-produce the motion picture "Alicia's Book" for a producer's fee of $250,000 each.
The Complaint asserts causes of action against Perry for Intentional Interference with Economic Advantage, Intentional Interference with Contractual Relations, Breach of Fiduciary Duty, Negligent Infliction of Emotional Distress, Intentional Infliction of Emotional Distress, Unjust Enrichment, Defamation and for a Permanent Injuction enjoining Perry from producing the motion picture "Alicia's Book." Belfair International and Golan have filed an ancillary lawsuit in the Los Angeles Superior Court against Millennium Films seeking to enjoin the production of the motion picture "Alicia's Book."
CONTACT: Law Offices of Barry K. Rothman, 310/557-0062 |
