Alan Neuman Productions, Inc. v. Jere Albright

Alan Neuman Productions, Inc. (“ANPI”) obtained judgment on default entered after Albright, having actual knowledge of the filing of the complaint and ANPI’s intention to take a default, failed to respond. We affirm in part, reverse in part, and remand.

FACTS AND PROCEEDINGS

Neuman, a television producer who, through his wholly-owned corporation ANPI, also produces motion pictures, met Albright, an entrepreneur interested in participation in movie financing. Albright had previously entered into an agreement with Mueller, a Dutch financier, whereby Al-bright was to receive an executive producer’s fee for each film financing package Albright brought to Mueller and for which Mueller issued standby letters of credit. The executive producer’s fee was to be paid only if the film was actually completed.

Through Albright’s negotiations and as a result of his representations, ANPI and Mueller signed a contract on September 19, 1981. In a marginal notation, that contract required that ANPI pay $92,500 to Mueller as a deposit which would be refundable should the letter of credit not be opened. Neuman did not make the deposit at the time of the execution of the agreement, but did make…