White Dragon Productions, Inc. v. Performance Guarantees, Inc.

In this appeal we shall conclude summary judgment upholding the terms of a contract was improper, due to triable issues of fact concerning the voidability of the contract. Reversed with directions.

Factual & Procedural Background

Plaintiff Mitsui Manufacturers Bank filed the underlying action of inter-pleader against defendants White Dragon Productions, Inc., Performance Guarantees, Inc., and Tadeusz Bugaj, to compel them to interplead and litigate their several claims to a bank account. (Code Civ. Proc. § 386, subd. (b).) This appeal by White Dragon Productions is from the judgment awarding the account to Performance Guarantees.

In September 1985, White Dragón Productions and Performance Guarantees executed a document entitled Completion and Security Agreement (Agreement), whereby Performance Guarantees became the completion guarantor of a film being coproduced by White Dragon Productions. The Agreement authorized Performance Guarantees to assume control of production when, inter aha, it deemed it likely the film would not be completed on time. In the event of such a takeover, the Agreement vested Performance Guarantees with power of attorney, including the right to…