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Winnie the Pooh Ruling Wallops Disney
Reuters / au.newsYahoo ^ | 11/21/2002 | Staff

Posted on 11/21/2002 3:11:58 AM PST by ex-Texan

Winnie the Pooh Ruling Wallops Disney

In a major setback to the Walt Disney Co. in the long-running Winnie the Pooh royalties case, a California appellate court Wednesday let stand potentially devastating jury instructions.

Disney appealed an August 2001 order by L.A. Superior Court Judge Ernest Hiroshige imposing sanctions because it destroyed documents, including a filed marked "Pooh-legal problems."

Hiroshige's order stated that a jury could be told as a fact that Disney willfully suppressed evidence. He also ruled deceased Disney employee Vincent Jefferds said the Slesinger family -- the plaintiffs -- would be paid royalties on video cassettes. Finally, the trial judge ruled Disney was prohibited from disputing the Slesingers' version of the facts relating to Jefferds' statements.

The Slesinger family, which holds North American rights to Pooh and has licensed them to Disney since the 1960s, claims it has been cheated of royalties by hundreds of millions of dollars. The family wants the money and the right to terminate the Disney license.

During oral arguments on the appeal earlier this month, Disney attorney Daniel Petrocelli described Hiroshige's non-monetary sanctions as "massive and crippling" and so prejudicial they could prevent Disney from trying the case.

Hiroshige also imposed monetary sanctions on Disney of $90,000 -- a large amount for sanctions, but a small amount in a case with potential damages of $1 billion.

In a tactical move, Slesinger attorney Bert Fields waived the monetary sanctions, leaving Disney's only avenue an appeal of the jury instructions.

In a decision released Wednesday, the California Court of Appeal ruled there may be questions as to the correctness of the sanctions, but it refused to hear Disney's appeal, ruling non-monetary sanctions cannot be appealed immediately, but must wait until the case is over.

Fields said, "An extraordinarily capable and highly respectable panel of the California Court of Appeal has done the right thing, and the demonstrably correct decisions of the trial judge will apply at the trial of this case contrary to Disney's attempt to get out from under the sanctions that were awarded against them for their destruction of documents and what the trial judge found were false and misleading statements.

A Disney spokesman said, "It is unfortunate that the rules did not permit the Court of Appeal to get to the underlying issue, but we're gratified the court saw that questions remain as to the correctness of the trial court's sanctions, and Disney will continue to challenge vigorously those sanctions."

Earlier this month, Disney announced it had reached an agreement with the heirs of A.A. Milne and E.H. Shepard, the Pooh books author and illustrator, under which the heirs would reclaim merchandising rights from the Slesingers and grant them to Disney. The Slesingers are contesting the agreement in separate litigation.


TOPICS: Breaking News; Crime/Corruption; Culture/Society; Government
KEYWORDS: duckau; mauschwitz; poohwallopsdisney
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Breaking news .... Pooh cleans out Disney for several hundred million dollars. Maybe billions. Disney commited fraud by destroying business records. Mickey has to pay big bucks.
1 posted on 11/21/2002 3:11:58 AM PST by ex-Texan
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To: ex-Texan
oh, bother...
2 posted on 11/21/2002 3:18:20 AM PST by GATOR NAVY
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To: ex-Texan
Disnet got caught with their hand in the Hunny jar.
3 posted on 11/21/2002 3:21:16 AM PST by Straight Vermonter
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To: ex-Texan
"Hiroshige's order stated that a jury could be told as a fact that Disney willfully suppressed evidence."

Maybe the Heffalump ate it?

Regards,

4 posted on 11/21/2002 3:23:33 AM PST by Jimmy Valentine
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Comment #5 Removed by Moderator

To: ex-Texan
'Pooh' Lawyer Dismisses Disney 'Sneak Attack' - Disney has destroyed 1000's of legal documents has some more history on the case. Thanks for the update!!
6 posted on 11/21/2002 3:23:52 AM PST by chance33_98
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To: ex-Texan
Yahoo. It would be good to see Eisner'Disney destroyed. Maybe then Walt's Disney could return.
7 posted on 11/21/2002 3:24:07 AM PST by AmericaUnited
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To: ex-Texan
In a ruling last June, Judge Hiroshige imposed sanctions on Disney after finding it destroyed thousands of documents in the case, including a file entitled "Winnie the Pooh Legal Problems." (from the earlier article)

I hope they get nailed on this. This ruling was a step in the right direction.

8 posted on 11/21/2002 3:28:03 AM PST by chance33_98
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To: ex-Texan
What a bunch of woozles...
9 posted on 11/21/2002 3:29:25 AM PST by Junior
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To: Edmund Burke
Before who took over Disney?
10 posted on 11/21/2002 3:29:35 AM PST by Admin Moderator
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To: Edmund Burke
Did this fraud occur before or after the Jews took over Disney?

I know you've been around here a lot longer than I have, but don't you think this type of remark is a bit inappropriate? It seems like you crossed the line and are being blantantly anit-semitic.

An apology might be in order.
11 posted on 11/21/2002 3:31:27 AM PST by Einigkeit_Recht_Freiheit
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To: Edmund Burke
Did this fraud occur before or after the Jews took over Disney?

10... 9... 8...

No mercy.
Coming soon: Tha SYNDICATE.
101 things that the Mozilla browser can do that Internet Explorer cannot.

12 posted on 11/21/2002 3:34:03 AM PST by rdb3
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To: ex-Texan
I heard some interesting analysis regarding some of Disney's characters about a year ago. Growing up watching Disney on Sunday evenings, it was a fact of life that Mickey, Pluto, Donald Duck, Jiminey Cricket and a number of other characters were Disney property, and would be forever. But that isn't necessarily the way copywrites or patents work. At some certain point in time, they expire.

Disney has had exclusive rights to Mickey Mouse for around fifty years now, perhaps longer. Is it reasonable to think that the copywrite on the Mickster might reasonably come to an end in the next few decades?

To be honest, I find this problematic. Their corporation (Uncle Walt) came up with the concept. It was their creativity (his), and I can see a valid claim that Mickey should remain Disney property exclusively. But I do feel there is validity to the opposing arguement as well.

Perhaps the crowning commentary was provided by Disney itself in the 1970s. An aquaintence painted Disney characters on the walls of his children's bedroom. He didn't seek to do it anywhere else. It was only for his children's enjoyment. Disney caught wind of it and forced him to remove the characters. After that I didn't have much sympathy for Disney. Worth billions, it seemed like Paul Bunion stomping a kid with paulsey (sp?).

I never forgot this. I don't have much sumpathy of any of Disney's positions these days. That's a shame. Disney used to stand for all things good. Hard to believe these days.

13 posted on 11/21/2002 4:04:32 AM PST by DoughtyOne
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To: ex-Texan

"How about small smackerel of honey? No? A large cash settlement then?"

Regards, Ivan

14 posted on 11/21/2002 4:09:30 AM PST by MadIvan
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To: ex-Texan
"Tut, tut, it looks like rain...."
15 posted on 11/21/2002 4:11:34 AM PST by Rocko
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To: DoughtyOne
And yet, for years the gay and lesbian groups have used Disney characters in their fliers for "Gay Day", an event that Disney allegedly never sanctioned.
16 posted on 11/21/2002 4:20:33 AM PST by Beth
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To: ex-Texan
BOYCOTT DISNEY: A vortex of seductive evil
17 posted on 11/21/2002 4:24:48 AM PST by Petronski
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To: Petronski
I always thought the Disney characters were so boring compared to Warner Bros. No character, no psychology.
18 posted on 11/21/2002 4:44:30 AM PST by anatolfz
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To: anatolfz
I always thought the Disney characters were so boring compared to Warner Bros. No character, no psychology.

That is SOOOO true!

19 posted on 11/21/2002 4:50:43 AM PST by Maceman
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To: anatolfz
Definitely. The Disney characters (Pooh excluded) were very flat. Bugs and the gang were funny to kids, of course, but at an entirely different level, were very funny and entertaining to adults. Cleverness.

Apparently the only way Disney could get cartoon characters with any depth was to STEAL THEM. Bwa ha ha ha ha ha!

20 posted on 11/21/2002 4:51:48 AM PST by Petronski
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