Obviously It's the Unions' Faults

A Hollywood company files bankruptcy, pointing to the culprits as it spirals down in flames.

AFTRA has formally rejected a settlement offer by producer Stanley M. Brooks to actors who worked on the 2008 Logo TV series "Sordid Lives," and filed a petition in federal court in Los Angeles to confirm the results of their previous arbitration award against Brooks and his company Once Upon A Time.

The DGA, WGA West and the IATSE Motion Picture Industry Pension and Health Plan have also rejected the offer from Brooks to settle $1.6 million in mostly in unpaid residual payments, for $242,000, or about 16 cents on the dollar.

Brooks' company, as a result, will declare bankruptcy shortly, his attorney Kenneth Suddleson said Friday.

Suddleson noted that his client had told the actors and writer-director Del Shores, as well as the guilds, that he would have no other choice if his offer wasn't accepted. ...

Shorter lawyer-speak: "Take our sixteen-cents-on-the-dollar offer, or we JUMP! Top of the world Ma!"

I don't know who's to blame here, since there seems to be generous dollops of bad judgement to go around, but the guilds and IATSE have kind of a fiduciary responsibility to go after moneys owed.

My favorite comment below the article:

Let him File For Bankruptcy! If he and his attorney are caught lying on the BK Federal Application they will both be prosecuted for BK Fraud! Also, all involved should attend the hearing of the creditors to Object To Discharge, state your reason why to the BK trustee and Judge and tell them to get Forensic Accountants to follow the money trail. Also, if you hate his attorney and find that he is liar, as well, you can file a complaint against his law license with the Bar Association. Let Brook's and his groupees go through the pressure of a Bk WITH OBJECTIONS TO DISCHARGE FOR FRUAD!

Under no circumstances can we tolerate fruad. That's beyond the pail.