By Zach Arnold | March 20, 2007
By Zach Arnold
Fishman Companies (Ed Fishman), through attorneys at Brownstein Hyatt Farber Shreck P.C., filed a lawsuit in Clark County, Nevada on Monday against Dream Stage Entertainment Inc., Dream Stage Entertainment (Japanese branch), and “does i-x.” The “does i-x” is a generic term for unknown individuals related to PRIDE that the court can later amend to name publicly once identities are verified and ascertained.
In short, the lawsuit from Fishman Companies alleges five causes of action:
- Breach of contract
- Breach of the covenant of good faith and fair dealing
- Unjust enrichment
- Quantum meruit
- Anticipatory repudiation
History (according to the Fishman Companies legal complaint)
DSE signed a three year contract with Fishman Companies on April 7th, 2006. Fishman Companies had a two-year option at the end of the deal to sign if they wanted to make it a 5-year contract in total length. The deal states that Fishman Companies would be paid an annual consulting fee of $200,000 USD/year by DSE. Therefore, a five-year contract life would result in a payment of $1 million USD to Fishman Companies. The consulting deal also gave Fishman Companies 10% of the revenue from tickets sold per each PRIDE US event.
The complaint states that Fishman Companies was not paid 10% of the ticket sales for both the 10/21/2006 and 2/24/2007 Thomas & Mack Center events in Las Vegas, Nevada. Based on the gate of $2,033,098 USD for the 2/24 show, Fishman Companies believes it is owed $203,309.80 USD. FC wrote a note to DSE on 2/27 with a deadline of March 7th for payment of money owed to FC. The complaint says that Fishman Companies did not receive any money or written assurances that money would be paid. Money was owed no later than 4/7/2007 (a year to the date of the contract signed), and Fishman Companies sent out the note to DSE ahead of schedule.
The lawsuit by Fishman Companies is filed under the following conditions:
The damages are in excess of $10,000 USD, a recovery of all reasonable costs and attorney fees (court costs), any legal interest rate on money owed in the pre and post judgment figures, and any additional relief the court deems just and proper based on evidence presented at trial.
Fishman Companies is seeking $10 million USD based on the following:
- $200,000 USD/year consulting fee (worldwide) at 5 years, totalling $1 million USD
- $9 million USD based on the 5-year life of the contract with PRIDE in which Nobuyuki Sakakibara presented a business plan outlining six PRIDE events in the US per year with a projection of $3-4 million USD gates per show, giving Fishman Companies roughly $1.8 million USD for each of the five years)