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Disney appeal on destroyed Pooh documents denied
Reuters, 02.20.03, 1:53 PM ET
LOS ANGELES, Feb 20 (Reuters) - The U.S. rights holder to Winnie the Pooh said on Thursday the California Supreme Court has denied Walt Disney Co. (nyse: DIS - news - people) the chance to contest key evidence in a pending trial over a billion-dollar honey pot of marketing rights.
Stephen Slesinger Inc. said the court declined to review an appeals court ruling from November, which held Disney had destroyed evidence it knew Slesinger needed in its quest for a bigger share of money from movies and merchandise based on the honey-loving bear and his friends in the Hundred-Acre Wood.
British author A.A. Milne began chronicling the mishaps and adventures of Pooh and his friends in the late 1920s, and the modest bear since has become an international star.
Disney, which has said it could be liable for hundreds of millions of dollars if it loses the central case that has not gone to trial, says the destruction of documents was innocent and the appeals court ruling was made on a technicality. But the appeals court ruled Disney had been false and evasive.
"They can shred, but they can't hide," Slesinger lawyer Bert Fields said in a statement. The ruling means that a jury will be told Slesinger's version of some key conversations about licensing terms were true when the case ultimately goes to trial, he has said.
In a tangled legal battle stretching over two decades, Slesinger alleges that business partner Disney has short-changed it of its share in profits on the Pooh franchise that generates about $1 billion in annual revenue for Disney.
Both sides expect a March trial to be postponed as a Los Angeles court rules on a separate motion Disney filed earlier this month, accusing Slesinger's side of stealing documents. Slesinger's lawyers deny that charge.
Disney shredded other documents, which was the heart of the matter that the state Supreme Court declined to review. The court handed down its decision on Wednesday, the parties said.
But Disney may have another chance, far down the line, since it lost the appeals court ruling on a technicality. When Slesinger lawyers refused monetary sanctions approved by a lower court, the grounds for appeal of the entire ruling evaporated, the court said in November.
That left open the door for a Disney appeal on the matter if it loses the main trial. Disney's motion alleging Slesinger stole documents also is still under review.
"This is not a decision that was taken on the merits of our appeal, and it does not affect our motion for sanctions against Stephen Slesinger, Inc.," Disney spokesman John Spelich said.
Copyright 2003, Reuters News Service
Reuters, 02.20.03, 1:53 PM ET
LOS ANGELES, Feb 20 (Reuters) - The U.S. rights holder to Winnie the Pooh said on Thursday the California Supreme Court has denied Walt Disney Co. (nyse: DIS - news - people) the chance to contest key evidence in a pending trial over a billion-dollar honey pot of marketing rights.
Stephen Slesinger Inc. said the court declined to review an appeals court ruling from November, which held Disney had destroyed evidence it knew Slesinger needed in its quest for a bigger share of money from movies and merchandise based on the honey-loving bear and his friends in the Hundred-Acre Wood.
British author A.A. Milne began chronicling the mishaps and adventures of Pooh and his friends in the late 1920s, and the modest bear since has become an international star.
Disney, which has said it could be liable for hundreds of millions of dollars if it loses the central case that has not gone to trial, says the destruction of documents was innocent and the appeals court ruling was made on a technicality. But the appeals court ruled Disney had been false and evasive.
"They can shred, but they can't hide," Slesinger lawyer Bert Fields said in a statement. The ruling means that a jury will be told Slesinger's version of some key conversations about licensing terms were true when the case ultimately goes to trial, he has said.
In a tangled legal battle stretching over two decades, Slesinger alleges that business partner Disney has short-changed it of its share in profits on the Pooh franchise that generates about $1 billion in annual revenue for Disney.
Both sides expect a March trial to be postponed as a Los Angeles court rules on a separate motion Disney filed earlier this month, accusing Slesinger's side of stealing documents. Slesinger's lawyers deny that charge.
Disney shredded other documents, which was the heart of the matter that the state Supreme Court declined to review. The court handed down its decision on Wednesday, the parties said.
But Disney may have another chance, far down the line, since it lost the appeals court ruling on a technicality. When Slesinger lawyers refused monetary sanctions approved by a lower court, the grounds for appeal of the entire ruling evaporated, the court said in November.
That left open the door for a Disney appeal on the matter if it loses the main trial. Disney's motion alleging Slesinger stole documents also is still under review.
"This is not a decision that was taken on the merits of our appeal, and it does not affect our motion for sanctions against Stephen Slesinger, Inc.," Disney spokesman John Spelich said.
Copyright 2003, Reuters News Service
