The Kingdom Sues the World
According to the LA Times, Kingdom Films (the Walt Disney Company’s main film financing company) is suing the company for breaching a contract that guaranteed the financing company a share of profits from” High School Musical 3: Senior Year” and “Hannah Monatana: The Movie” (set to release next year). Kingdom claims that Disney has sought to take away ”bargained-for rights” in the two movies, even after the two companies formed Magic Films (Disney owns 60% and Kingdom owns 40%). Kingdom further claims that it was clear from the contract that Magic Films would benefit from the value of Disney’s properties (including those that had ties to the Disney Channel). Disney claims that Kingdom cannot gain benefits from “High School Musical 3″ because the contract states that sequels are excluded.
