Hemdale Home Video, Inc. v. Oak Productions, Inc. (In re NSB Film Corp.)
Opinion
Lead Opinion
Lax, J.
CORRECTED MEMORANDUM OF DECISION AND ORDER.
PROCEDURAL HISTORY
This adversary proceeding was commenced by an action in interpleader brought by Hemdale Home Video, Inc. (“HHV”) against NSB Film Corporation (“NSB” or “Debtor”) and Oak,,Productions Inc., Pacific Western Productions, Inc., American Gothic Productions, Inc. and Stan Winston, Inc. (the “Participants”) to determine entitlement to certain funds (the “Profit participation Funds”) arising out of exploitation of the motion picture “The Terminator.” Both NSB and the Participants have asserted claims to the Profit Participation Funds.
NSB filed a cross-complaint against the Participants asserting that any interest of the Participants in the Profit Participation Funds is avoidable as a preferential transfer. The Participants seek dismissal pursuant to F.R.C.P. 12(b)(6), applicable to this adversary proceeding in accordance with F.R.B.P. 7012, on the grounds that the cross-complaint and its attached exhibits establish as a matter of law that the interest transferred was not property of the Debtor.
UNDERLYING AGREEMENTS
1. NSB (then known as Hemdale Film Corporation) and Hemdale Home Video (HHV) entered into a Video Output…