Sheen's legal case against studios not so crazy (Reuters)

LOS ANGELES (Hollywood Reporter) – Charlie Sheen might consider himself a "winner," but it's far from clear whether the "Two and a Half Men" star would prevail in what seems like an inevitable legal showdown over who is to blame for the implosion of America's most-watched sitcom.

After the CBS network and producer Warner Bros. Television (WBTV) canceled the show's eighth season last week, the 45-year-old actor launched a nonstop media blitz demanding that the cast and crew be paid for the remaining eight episodes (WBTV will pay the crew for four) and possibly for the ninth season.

Sheen's lawyer Marty Singer argued in a terse February 28 letter to the network and studio that his client is "ready, willing and able" to resume work and that he's been locked out "in retaliation for" criticisms of "Men" co-creator Chuck Lorre.

While showbiz legal experts say that referring to Lorre as a "clown" and a "retarded zombie" on television doesn't help Sheen's cause, many believe he has a decent case, especially if reports are true that his deal with WBTV includes no morals clause. The controversy, say the lawyers consulted by The Hollywood Reporter, will hinge on which side breached the heavily negotiated contract that pays Sheen more than $1.2 million an episode.

Sheen's lawyers believe that Warner Bros. and CBS violated their obligations by allowing Lorre to dictate that the show be shut down in the wake of Sheen's outrageous statements and partying with porn stars. Sheen maintains he's clean and sober and there's nothing in his private life that would trigger a "default" under his contract. The legal arguments mirror a path that has proved successful for other entertainers who have been terminated for offensive comments.

Martin Gold, a litigator at SNR Denton in New York, says the situation reminds him of when CBS fired shock jock Don Imus after he made derogatory statements about the Rutgers women's basketball team. CBS tried to avoid paying Imus on his contract, but it couldn't get around the argument that the conglomerate got exactly what it had bargained for, signing extension after extension even though it knew Imus' reputation.

Similarly, if the deal between WBTV and Sheen is "pay or play" -- as Singer's letter says it is -- then Sheen will argue that bragging that he's survived "banging seven-gram rocks" can't be held against him. Indeed, Warners knew for years about Sheen's behavior -- including stints in rehab and an arrest on charges of attacking then-wife Brooke Mueller -- but only acted after Sheen insulted Lorre, perhaps the studio's top producer.

Gold says, "This was going on for a long time, so it can hardly be called a surprise."

However, experts say CBS and Warner Bros. could have equally strong arguments that Sheen, not the network or studio, violated the contract. And if Sheen is found to have materially breached his deal, he could forfeit his rich deal and even be forced to reimburse CBS/WBTV for lost revenue, which could reach as much as $250 million if the show shuts down permanently.

Such a case would likely be premised on the notion that Sheen, despite his willingness to show up on set, has become such a high risk and has damaged so many relationships that continuing the show would not be possible. It's no coincidence that the statement released by CBS and WBTV on February 24 blamed the shutdown on "the totality of Charlie Sheen's statements, conduct and condition."

Ellyn Garofalo, a partner at Los Angeles' Liner Grode Stein firm, believes the studio and network would focus on Sheen's public statements about Lorre and take depositions from those who work on the Men set to "show Sheen had become impossible to work with," she says.

CBS/WBTV also could argue that Sheen is damaging the show and network with his media rampage, possibly violating a "disparagement" clause in his contract, and that his presence would cost TV's top comedy advertisers and viewers (though "Men" ratings have remained steady during the fiasco).

But Hollywood litigation expert Aaron Moss at Greenberg Glusker thinks an argument based on Sheen's outrageous behavior alone would be hurt by the absence of a morals clause. Instead, Moss believes that CBS/WBTV could target the actor's physical condition.

"The best argument that Warners would have would be to not focus on conduct and statements per se but only as evidence of his condition, tied to his inability to do his job," Moss says.

Which means that a judge would likely scrutinize Sheen's contract to determine whether he was actually fulfilling his job responsibilities. If, for instance, he was employed not just to deliver lines but also to promote the show, then CBS/WBTV could argue that Sheen had already shirked these duties by placing the show in a negative light. And, of course, Sheen's employers now have a week's worth of public tirades to use as evidence that perhaps he wasn't showing up to the set in top condition. Moss points to one statement made by Sheen on 'The Dan Patrick Show' that could come back to haunt the actor.

"(I've) never been drunk, never been high on the set once," Sheen told the syndicated sports show host on February 15. "But I would show up not having slept much. Doing a network run-through and asking the director, Jamie, to move my mark a little bit so I could be next to a piece of furniture or a table so I wouldn't fall over."


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Studios handing big films to untested directors (Reuters)

By Jay A. Fernandez Jay A. Fernandez – 1 hr 16 mins ago

LOS ANGELES (Hollywood Reporter) – Hollywood loves discovering new talent. But its passion for developing emerging filmmakers has lately strayed into large-scale, downright risky terrain.

Case in point: Universal is in the process of handing director Carl Rinsch a $170 million budget for "47 Ronin," a 3D samurai revenge story starring Keanu Reeves that will begin shooting March 14 in Budapest. Rinsch's resume includes a popular short film and a Heineken commercial -- but no features.

And he's far from the only fresh-faced director stepping into the big-budget fray. Disney gave commercials helmer Joseph Kosinski close to $200 million for "Tron: Legacy." Universal recently hired first-timer Rupert Sanders to helm the $100 million-plus "Snow White and the Huntsman." Relative newbies Marc Webb, who's shooting Sony's "The Amazing Spider-Man," and Daniel Espinosa, who's helming Universal's action thriller "Safe House," took on the potential blockbusters with little previous feature work.

It's not an entirely new phenomenon, but for several reasons the scale and justifications behind the hires have changed. During the 1990s, commercial and music video directors such as David Fincher ("Alien 3," 1992), Michael Bay ("Bad Boys," 1995), Gore Verbinski ("Mousehunt," 1997) and McG ("Charlie's Angels," 2000) made the jump to features, but most of them did so with comparatively modest budgets.

During the past five years, though, technology has enabled rookie directors to hone their skills via FinalCut Pro, digital-video cameras and other state-of-the-art effects tools from a young age, prompting budget-wary studios to salivate over what they can put on screen for a price. Gareth Edwards, for instance, made his indie sci-fi film "Monsters" for a few hundred thousand dollars, even though it looked much more expensive. He's now up to direct "Godzilla" for Warner Bros.

"It's a reflection on the innovation of emerging filmmakers," says Anonymous Content manager Michael Sugar, who represents Webb and Kosinski. "You're looking at people like Fede Alvarez, who made a short film ("Panic Attack!") for $300, put it on YouTube, and it looks like it was made for $20 million." Alvarez, an Anonymous client, was hired by Sam Raimi's Ghost House Pictures to develop a sci-fi feature.

More than ever before, the short-film and commercial environment has become a playground to use up-to-the-minute tech to create feature-film calling cards. Sanders, "District 9" co-writer-director Neill Blomkamp and Noam Murro -- recently hired by Fox to direct the fifth "Die Hard" -- all did spots for recent Halo video game campaigns, a gig that has become as coveted as any debut film job because it often becomes a higher-profile entry into features.

Ad-world veterans also tend to be more comfortable making presentations in front of dozens of studio execs, and to be handy with creating the rip reels, animatics and annotated screenplays that the studios now want to see. These days, when execs say yes to a spec package, they aren't saying yes to development but to a movie, with a budget, detailed vision and release date.

"If you look at the way movies are being sold into the studios, whether it's "Safe House" or "All You Need Is Kill" or "Snow and the Seven" -- those are spec screenplays that were either sold in with a director or developed to the point where they were movies," says Management 360 manager-producer Darin Friedman, who represents "Kill" writer D.W. Harper and director Adam Berg.

At the same time, the screenwriting community has largely abandoned the spec approach -- what was for a long time Hollywood's prime idea factory. In the last few years, studios have made brutal trims to slates and development overhead. Filmmakers are now bypassing writer-provided original material by building a creative pipeline to funnel their own spec packages directly to producers and execs.

Alvarez's short film got him noticed all over town. Berg's short "Carousel," made for Philips TV, had him up for the job of helming the big-budget "X-Men" spinoff "Deadpool" for Fox. James Mather and Stephen St. Leger's short "Prey Alone" led to their writing and directing the sci-fi actioner "Lockout" for Luc Besson's EuropaCorp and FilmDistrict.

Rather than scrape together financing for a small indie, a visionary director can simply send a link to his short to someone in the industry, and everyone's seen it within an hour. The heat generated from a viral explosion can put an auction-like target on a filmmaker.

"Carl Rinsch had been kicking around for years, but when he made (the 2010 short) "The Gift," it got sent around and it created a frenzy," Friedman says. "That doesn't happen without that perfect storm of the right idea executed well, with the technology to share it virally."

Studios want and need movies, but they have less and less interest in developing them internally. From multiple accounts, rookie filmmakers are put through their paces by nervous studios before a green light. But by choosing to hire unproven talent, studios are also getting less expensive filmmakers that are potentially easier to control and can be loyal to the studio if the film is a hit.

Blomkamp had only about $30 million but made "District 9" seem a lot bigger. When it grossed $211 million worldwide, the path widened for other first-time visionaries, and Blomkamp is now directing the $125 million "Elysium" for Sony.

But the strategy is not without risk. Sony distributed Florian Henckel von Donnersmarck's Oscar-winning debut "The Lives of Others" via Sony Pictures Classics. But when the studio gave him $100 million to make "The Tourist" with Angelina Jolie and Johnny Depp, it grossed only $67 million domestically amid critical pans (the film did better overseas, grossing $163 million).

And as Rinsch goes into production on "Ronin," he might want to take stock of first-timer Kinka Usher, a Directors Guild of America award-winning commercials veteran to whom Universal gave $70 million in 1999 to make "Mystery Men." The superhero spoof grossed just $33 million globally, and Usher has been making commercials ever since.


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