Sungaila in Law360 on 9th Circuit Appeal

06/22/2018

Law360 featured Haynes and Boone, LLP Partner M.C. Sungaila in an article about a 9th Circuit Court of Appeals hearing in which she represented MGA Entertainment Inc. in an appeal of a summary judgement ruling.

A district court ruled that MGA breached a contract with Viacom governing ad sales and production of a TV show.

Here is an excerpt:

“This case is about a 20-year business relationship that turned sour after Viacom failed to regularly schedule and promote an award-winning TV series created around one of MGA’s popular toy lines, Lalaloopsy,” Sungaila said.

Sungaila’s comments came during a hearing on an appeal of a trial court’s ruling that granted Viacom summary judgment on all of its breach-of-contract claims against MGA and all of MGA's counterclaims against the media giant. In September 2016, the district court found MGA owes $14.9 million in damages for the breaches.

MGA appealed the summary judgment rulings, with Sungaila arguing before a panel Thursday that Viacom suspended the program during the “critical” holiday period in an effort to get MGA to pay a $3.5 million guarantee under their co-finance agreement. In doing so, Viacom created a domino effect on their business relationship, impacting their advertising agreements across all of MGA's products, Sungaila said. Ultimately, Viacom put its own property interest above MGA's, she said.

To read the full article, click here. (Subscription required)

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