Pre-trial issues resolved in German film company case

A number of pretrial issues have been resolved in a German film company’s action against two Irish film producers over the alleged diversion of funds out of a production company. The action alleges that the funds were diverted to either the Irish producers or to corporate entitles controlled by them.

James Flynn, Monterey, Ballyedmonduff Road, Stepaside, Dublin, and Morgan O’Sullivan, Ardmore Park, Bray, Co Wicklow, deny any wrongdoing.

Berlin-based W2 Filmproduktion Vertriebs GmbH has sued both producers in relation to Octagon Films Ltd, a company of which they are all shareholders.

W2 claims it has lost estimated revenues of €25 million in relation to activities of Octagon in which W2 owns 49 per cent of the shares, and had sought damages for an alleged breach of contract and duty.

Both producers, who are also directors of Octagon, deny any wrongdoing and also deny that any monies were diverted by them that should have been paid to Octagon.

The defendants had brought pre-trial motions, including one to have the claim struck out on the basis it disclosed no cause of action and was bound to fail.

They also sought to have a liquidator appointed to Octagon, who as an independent officer of the court can investigate the company’s affairs.

Those motions were opposed by W2.

Motions

The hearing of the motions had been expected to last eight days but, after talks between the parties, Ms Justice Eileen Creedon was informed on Wednesday by Paul Gardiner SC, for W2, the preliminary issues had been resolved and the case could be adjourned until April 2018.

The sides had agreed that the applications to dismiss the proceedings and to wind up the firm could be struck out, the court heard.

It was also agreed the court could give permission to W2 to bring proceedings on behalf of Octagon against the defendants while its original proceedings against the two producers could be struck out.