Deadline has reported that the trustees for author Philip K. Dick are suing those who made the 2011 film, The Adjustment Bureau for more than $500,000. The trustees filed a 14-page com plait today with the LA Superior Court where they stated that the director the film, George Nolfi, as well as the producer, Michael Hacket, and Media Rights Capitol and it’s subsidiaries owe them the money plus fees and damages regarding the film.
They are citing breach of contract and four other claims since the defendants have continuously refused repeated requests to open the accounting books in relation to the film. They are also claiming they have been shortchanged payments from the film’s net profits and that the defendants have “demanded the return” of the $1.4 million feed that they paid Dick in April 2009 for the film rights.
This new suit comes only a few months after the trustees abandoned a previous federal case against Nolfi and MRC after the judge dismissed the claims citing lack of jurisdiction.
Dick wrote a short story called “Adjustment Team” which the film The Adjustment Bureau is based on. It featured Matt Damon and Emily Blunt as the main characters. Since its release in 2011, the suit claims the film made around $128 million in the global box office as well as $10 million in DVD sales. The suit also mentions the unknown international DVD sales and TV sales.
Nolfi and MRC are adamant to fight the suit as they are claiming that the original story was actually public domain, and therefore didn’t owe the Trust anything. The trust denies that the story was public domain however, stating that Nolfi optioned the film rights back in 2001. It was revealed that Nolfi initially paid $25,000 for an initial one-year option and the same on later options, subsequently entered into extension agreements on the option in 2004, 2007 and 2008.
According to Deadline:
The trustee’s suit, […] says that Nolfi agreed to pay an eventual purchase price for the rights based on the “approved budget” for the film. The director/producer also agreed to pay a “breakeven” fee of $100,000 when worldwide gross receipts, minus certain deductions, equaled double the cost of production plus marketing, overhead and interest costs. Nolfi, who “assigned” all his rights to MRC’s Oaktree Entertainment in the spring of 2009, additionally agreed to pay the Trust 2.5% of the film’s net profits and a “further $100,000 for each additional $10 million in worldwide gross receipts in excess of Breakeven up to the point the Trust received a total of $2 million in payments.” Oaktree exercised the option on the film, with a projected budget of around $50 million, and “wired payment of $1,400,000 to the Trust” soon after.”
The Philip K. Dick Testamentary Trust adds that they also helped writing the script for the movie as well the marketing of movie per the request of Universal, who distributed the film. Although Universal is not named as a defendant in the suit.