Marathon Funding, LLC v. Paramount Pictures Corporation

2013 WL 785915 (2013)

From our private database of 46,400+ case briefs, written and edited by humans—never with AI.

Marathon Funding, LLC v. Paramount Pictures Corporation

California Court of Appeal
2013 WL 785915 (2013)

Facts

Marathon Funding, LLC (Marathon) (plaintiff) was an investment company with its principal place of business in New York that agreed to invest in 14 films produced and distributed by Paramount Pictures Corporation (Paramount) (defendant). The agreement was that in exchange for investing, Marathon would receive a percentage of each film’s net receipts. The net receipts were the gross receipt amounts minus deductions for expenses and participation payments. The agreement expressly disclaimed any fiduciary duty imposed on Paramount and contained a choice-of-law clause applying New York law. As an investor, Marathon did not have any control over the production of the films. One of the films under the agreement, No Country for Old Men, contained a certain participation payment known as a box-office bonus for the film’s star Tommy Lee Jones. Paramount negotiated and drafted the agreement, which contained a mistake that led to Jones being owed an additional $15 million. Consequently, Paramount reduced the amount of net receipts owed to its investors, causing Marathon to receive $2 million less than it would have without the error. Marathon filed suit against Paramount in California state court, alleging that the agreement gave rise to a joint venture and thus created a fiduciary duty. The trial court did not address the merits of the alleged breach because under New York law, the disclaimer of a fiduciary duty was effective. Paramount was awarded attorney’s fees, and Marathon appealed.

Rule of Law

Issue

Holding and Reasoning (Rubin, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,400 briefs, keyed to 994 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,400 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership