Resolving Profit Participation Disputes Presents Unique Challenges


Originally published in the Daily Journal on June 21, 2012.

Profit participation disputes are a world unto themselves, combining classic contract issues with special issues related to motion picture and television industry practice. Rather than end up in high-stakes, "winner take all" trials or arbitrations, mediating these disputes makes sense and can be far more effective. Following are suggestions to help resolve these often thorny disputes.

Don't just be an advocate, be a problem solver. This suggestion probably applies to all manner of disputes, but can be especially valuable in this area, where the parties have a high likelihood of working together on other projects in the future. While it's critical to be a zealous advocate for your client's position, often the best resolution is one that solves all parties' problems. Be generous to your opposing counsel. The odds are good that you will see them again.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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