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The complaint was filed today in Los Angeles Superior Court. This really sounds like one of the worst cases of phony-baloney studio accounting, not to mention sheer arrogance, in Hollywood history. Geez, when is Big Media going to stop this larceny? For instance, according to the lawsuit, NBC Uni is claiming that, as of the end of fiscal year 2006, Quincy M.E. has accumulated over $66 million in net losses — this after we all know that the 1976-1983 series is a classic shown all over the world even to this day. Through his Beverly Hills attorneys Johnson & Johnson [UPDATE: This firm and another are representing me in a class action lawsuit related to a personal matter. I forgot to disclose that when I wrote this post on a busy news day. I apologize for the omission.]
Klugman just gave this statement to me: “I don’t want their money. I want my money. I can’t believe they’ve collected over $250 million dollars and they say they are still in the hole. I have 28% of the net and they won’t even give me a copy of my contract. I worked for them for almost 8 years. I got up at 4 o’clock in the morning. I would rewrite. I did a ton of work. It’s on every day. I haven’t gotten a penny for years.”
Worse, the lawsuit claims that when Klugman asked to see his paperwork with NBC Uni, the network and studio ”have refused to give Plaintiffs a copy of the contract”. So on June 21, 2007, Klugman’s attorney wrote a letter to NBC Uni requesting “a copy of any and all contracts pertaining to Klugman and Quincy M.E.” On September 26, 2007, NBC Uni responded that it’s “unable to comply with your request … because it is NBC Universal’s policy not to provide copies of talent contracts or other confidential documents.” The lawsuit notes that, under the terms of the NBC Uni contract, Klugman and his company Sweater Productions are entitled to a “Participant Share” of 25% of all “net profits” attributable to Quincy M.E. But NBC is required to “properly account” for the net profits to Sweater/Klugman which has a right to audit the records of NBC Uni if a dispute arises. On March 5, 2008, Klugman’s attorney gave notice to NBC Uni of Klugman’s intent to audit the TV series.
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Harold is mostly right on his diagnosis of the situation. Without seeing the contract, nobody knows whether NBCU is in default of the contract or not. The issue of “creative accounting” is NOT unique to Hollywood! Ever hear of Enron? That is an extreme example, but every major company in the U.S. uses “creative accounting” that best suits their needs. However, it is legal as long as it meets the very loose guidelines of GAAP (Generally Accepted Accounting Principles). As Harold stated, if the contract definition of “net profit” allows the studio to charge insane costs against the project, they will and it is legal (maybe not moral but yet still legal). FYI, “Net” profits = Revenue (the number always reported by media) – ALL COSTS charged to the project.
How could NBC believe that the public will buy such a story.
“Quincy ME” was a money maker for the studio. My mother would watch it three times in one day.
Now, that was just in the states. Imagine what they make worldwide.
I believe that studios will not syndicate unless they can turn a profit.
The studio has made its profit.
Give the man his due.
“Harold is mostly right on his diagnosis of the situation. Without seeing the contract, nobody knows whether NBCU is in default of the contract or not.”
Mmmm, that’s not what Harold said. You see, Harold doesn’t even have to see the contract! He already knows that “All of the charges that will be against the gross are defined in the participation agreement. EVERY ONE”
Of course, this is preposterous to say regarding an agreement that was made in the 1970s. As you say, quite simply we don’t know until anyone sees the contract.
Harold can’t quite decide whether he believes this is a pointless case or not. He says “Anyone who has a “net profit” agreement is just holding a sheet of paper. Nothing more” then backpedals and says “The only time that anyone is doing anything wrong is if they make charges against net profit that are not stated in the participation agreement.”
No shit, Harold. What do you think they’re suing about?
Harold, I was recently involved in a legal matter where an arrogant lawyer like yourself told me I would lose. And lose big. He spouted a lot of crap like you, acted as if his answers were the ONLY ANSWERS. PERIOD. And anyone who was a “random uninformed person” without the knowledge of Harold knew nothing.
Well, I won my case and thank goodness I didn’t listen to the lawyer who sounded EXACTLY like you! It’s just incredible…
And I stand by comment about Garner being lucky not to have you as a lawyer. It’s obvious you’re not a fighter. You like to tell people what they did wrong. You would have lectured Garner on how he fucked up his contract.
A lot of good that does people. Apparently his lawyer fought and I’d say an 80 percent settlement is pretty darn good on what was a reportedly substantial sum of money.
I’ve seen many TV syndication contracts, and I have yet to see one where a show is “thrown in” for free.
Where are Jonathan and Jennifer Hart, Thomas Magnum, and Isaac when you need them? I bet you Quincy’s Asian sidekick knows more than he’s admitting.
Duchovny sued Fox on the grounds that they signed a revenue-sharing deal but then sold the X-Files shows cheaply overseas to affiliated companies. This meant that their overseas affilated companied had cheaper programming rather than Duchovny earning money had teh shows been sold at their full market value to unconnected companies. Doubtless there would have been some kind of bundling of shows to disguise this. Liek Garner and Jackson, Duchovny settled. I think he was suing for $25M. He’d signed up for something like $110,000 a show for the season before but his final deal was said to be for $30M i.e. he got all that he asked for.
Jamie,
Was your lawsuit filed over net profits you were owed? Because I have yet to see even a single legal case where the plaintiff prevailed in such a case.
That’s why people don’t go for net profits, opting instead for the various definitions of gross proceeds. And the really powerful players go for first dollar gross, so that they get their money first.
J. Michael Straczynski had the same problem with Babylon 5.
It is well known that all studios use creative accounting techniques to show a loss. It goes way behind individual contracts—-its all about taxes. When you show a loss there is no tax due!
I’m sure the studio will do what Disney did to Peggy Lee – stall the case so long that, even if he does win, it’ll be a day or so before he dies of old age. Disgusting.
“I’ve seen many TV syndication contracts, and I have yet to see one where a show is ‘thrown in’ for free.”
Di,
One of the central arguments that Garner’s attorneys made was that the Rockford Files was being packaged with other shows in syndication. The one that was specifically mentioned was Quincy. Garner’s claim was that all of the revenue for the package was being credited to Quincy and none to the Rockford Files. In essence, he was claiming that they were “throwing in” Rockford Files for free. They had a deposition from a Seattle station manager that supported their claim about the packaging.
What will be hilarious is when Klguman’s attorney’s probably make the same agrument. Only one or none is right.
I understand that a 20-year-old actor might have signed a horrible contract under duress, but Klugman was already a star when he signed the Quincy contract.
Who was the agent who handled that contract?
Is it possible that Klugman could win a malpractice suit against the agent’s estate, or the agent’s agency?
The last time I saw Quincy in the Charlotte market, it was still on network television. I can’t ever remember seeing it in reruns around here, or anywhere else I’ve ever visited. That being said, if it’s been making money, it hasn’t been doing it around here.
To me, it sounds like Jack Klugman might have gotten screwed. But it also sounds like he allowed it to happen to him. How in the world do you not have a copy of your contract? And I agree with another poster here, who said that NBCU wouldn’t dare give him a copy of that contract now that they’re being sued.
If Klugman is really due some money, I hope he gets it. I agree that too many folks have been screwed out of their just reward. But if Klugman signed a bum deal, that’s tough.
but this, THIS was not what the writers chose to strike about. because this corporate behavior just didn’t matter to them. transparency, honesty, a real sunshine law–none of that was part of the strike. so instead we all wasted 6 months so that nothing could be achieved, and creatives will still get screwed by corporations because no one has the balls (and the empathy to get beyond one’s own parochial interests) to take this on as the real overarching issue of hollywood. because these same corporations do pay us pretty well.
sigh. i could go on and on. but’s that why i have my own blog.
FRAUDELENT CONVEYANCE, PURE & SIMPLE. DOUCHEBAGS. JACK KLUGMAN & QUINCY M.E. WERE & ARE GOLDEN TO THE VERY WINS. GO JACKIE BOY!!
Jack Klugman is a creep. Why doesn’t he have a contract copy? I think he is fishing for money because he gambled away his pay.