SCIE LLC v. XL Reinsurance America, Inc.

MEMORANDUM *

The litigation in this ease concerns unpaid payroll services for the motion picture “The Devil and Daniel Webster” (hereafter “the film”) provided by plaintiffs, SCIE LLC and Paypix LLC, who do business as Entertainment Partners (hereafter “EP”). The film faced significant production difficulties due to shortfalls in funding. Eventually, the issuer of the film’s completion bond, Worldwide Film Corporation (hereafter “WFC”), took over the production of the film. When the film faced further difficulties, defendants XL Reinsurance and Star Insurance (hereafter “XL/Star”), the completion bond’s reinsurers, paid off the primary lender, the Louis Horwitz Organization (hereafter “LHO”) and acquired the film. Plaintiffs won a judgment of $3.2 million against the producer of the film, David Glasser, but were unable to collect. They then sued WFC and XL/Star.

XL/Star cross-appeals the district court’s denial of its motion for judgment as a matter of law on liability. Entertainment Partners appeals four issues: a dismissal of its motion for a new trial on damages, a dismissal of its equitable estoppel claim on summary judgment, and two evidentiary rulings at trial. We have…