Handful of very successful films could generate profits

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Basinger argued that only a handful of very successful films could generate profits to Main Line in the dollar amounts cited because of the many contractual claims against those profits by others. In addition, her presence in the film was no guarantee that the film would be successful. At issue here are the reliability and reasonableness of the numbers used in Main Line's lost profit computation. The case relies heavily on the identification of relevant costs and the performance of sensitivity analysis as the reader is asked to consider alternative cost and revenue assumptions to ascertain the impact on the lost profit amount. Finally, the reader is asked to prepare his or her own alternative lost profit calculation. In 1991, Main Line Pictures, Inc. sued actress Kim Basinger (and others) for breach of contract. Basinger had been in negotiation with Main Line to star in the film, "Boxing Helena" but had withdrawn from the project. The suit was heard in early 1993 in the Superior Court of the State of California, for the County of Los Angeles with the Honorable Judith C. Chirlin presiding.

Reference no: EM133574223

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