Directors Guild of America v. Harmony Pictures, Inc.

ORDER GRANTING MOTION OF, DEFENDANTS HARMONY PICTURES AND MELODY FILMS FOR PARTIAL SUMMARY JUDGMENT AND DENYING DGA’S CROSS MOTION FOR PARTIAL SUMMARY JUDGMENT

These cross-motions for partial summary judgment raise a novel issue. Directors Guild of America — Producer Pension Plan and the Directors Guild of America — Producer Health Plan (“DGA”) received a check drawn by the production companies, Defendants Harmony Pictures, Inc. and Melody Film, Inc. (“HPMF”) which contained the notation “Full and final settlement for the audit period 6/1/90 to 5/31/94” on the reverse side of the check. Along with the cheek, HPMF sent DGA a letter stating that, in an effort to resolve the dispute between the parties, it had enclosed the check which represented full and final payment and settlement of the parties’ dispute. DGA crossed out the notation on the check, endorsed and cashed it, and simultaneously sent a letter to HPMF stating that the check would not satisfy the remaining amount of HPMF’s outstanding debt.

This scenario is not novel. What is novel is that there are two apparently conflicting California statutes dealing with whether DGA’s cashing of the check constitutes an accord and…