A federal judge this morning has ruled that a multimillion-dollar lawsuit against the union by former SAG president Ed Asner and the 15 members of the self-titled United Screen Actors Committee will not go forward in its original form. In a hearing downtown, Judge Manuel Real granted large portions of SAG AFTRA‘s motion to dismiss the lawsuit over $130 million in allegedly improperly dispersed foreign residuals. Asner and the other plaintiffs first filed their suitMay 24. After the hearing, plaintiff’s attorney Helena Wise said “we’re not backing away from this”. The lawyer added that because some aspects of the foreign residuals in the case remain partially intact, she is considering amending the complaint. In his decision today, the judge also granted the majority of SAG AFTRA’s motions to strike portions of the original complaint. He did not agree to strike the naming of the union’s national executive director David White, which could be significant as Wise said today she is also considering launching an action of breach of fiduciary duty and corruption against various union executives including White and general counsel Duncan Crabtree-Ireland. In the hearing earlier, Wise told the judge that she would likely add White and others to the suit if it was allowed to go forward for their alleged role in the foreign residuals pay-outs. Also outside the courtroom after the hearing, plaintiff Bill Richert accused the union of being “corrupt” from “top to bottom.” Richert and several other plaintiffs attended the hearing today. Asner was not among them. SAG AFTRA lawyer Robert Bush said following the 30-minute hearing that “the complaint will have to be completely re-written”, adding that in his opinion “this is a small case, not a big case”.
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In their motion to dismiss in late July, the union had called the suit a “virtual verbatim restatement” of the 2007 class action by Ken Osmond of Leave It To Beaver fame and other actors accusing SAG of not properly paying out $8.1 million in overseas royalties. That case was resolved back in 2010 with a settlement. Not unexpectedly, in September, the plaintiffs disagreed with the comparison to the Osmond case. The USCA called the union’s actions in their particular case an “extreme web these parties have woven to steal money that rightfully belongs to U.S. performers, if not others as well.” In reading out his dense ruling to the courtroom, Judge Real not the plaintiff’s contention that SAG and the now merged SAG-AFTRA are not the same parties but still fundamentally agreed not to re-hear a case in federal court that had been resolved in state court three years ago.
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