New Regency Product v. Nippon Herald Films

I. Background

In May 1995, Appellant New Regency and Appellee Nip- pon Herald entered into an agreement for Nippon Herald to distribute in Japan five films produced by New Regency. In June 2003, Nippon Herald sued New Regency in a Japanese court, alleging that New Regency had violated the distribution agreement by failing to deliver one of the five films, “Crowded Room,” and by refusing to pay Nippon Herald money it claimed it was owed under a cross-collateralization provision. Several months later, the parties agreed that Nip- pon Herald would withdraw its Japanese suit and instead arbi- trate its claims through the American Film Marketing Association (“AFMA”), now the International Film and Tele- vision Alliance, a motion picture trade organization with its own arbitration rules and panel of arbitrators.

In November 2003, Nippon Herald and New Regency jointly selected William J. Immerman, then a Los Angeles attorney and executive for Crusader Entertainment, from a list of three potential arbitrators provided by the AFMA. During 11362 NEW REGENCY v. NIPPON HERALD the selection process, Immerman disclosed that he had previ- ously arbitrated a case where counsel for…