Cinemas Palme D'Or Bolstered By 2nd Positive Court Ruling

Cinemas Palme D'Or Bolstered By 2nd Positive Court Ruling

Indie theater caught in David vs. Goliath faceoff with Cinemark

PALM DESERT, Calif., Oct. 5, 2011 /PRNewswire/ -- Lauded independent exhibitor CINEMAS PALME D'OR - battling for big-screen life in a showdown with a behemoth theater chain - is looking toward ultimate victory after a second favorable court ruling.

CINEMAS PALME D'OR is fighting to show that giant Cinemark uses market muscle to force Hollywood studios to deny the indie commercially viable movies. In 2008, state Superior Court dismissed CINEMAS PALME D'OR's lawsuit in a summary judgment. But the California State Court of Appeals recently ruled to reinstate the suit, overturning the lower court's decision and then last week denying a motion by Cinemark for a rehearing.

"I believe this case has a chance to really impact our industry and help to preserve independent theaters all over the country," says CINEMAS PALME D'OR co-owner Steve Mason, a nationally known co-host of ESPN Radio's "Mason & Ireland Show."

Principals in Flagship Theatres of Palm Desert LLC also include three-time Emmy winner Bryan Cranston of AMC's "Breaking Bad"; Alise Benjamin-Mauritzson, co-producer of the Oscar-nominated film, "Ray"; her husband, Andreas Mauritzson, an executive for Guthy Renker; and longtime theater operator Brian Tabor.

Opened in 2003, CINEMAS PALME D'OR struggled in acquiring commercially viable films from major studios from the start. Century Theatres - since acquired by Cinemark - owns a multiplex nearby called The River. First Century and then Cinemark used their circuit size (now almost 5,000 screens) to starve its independent competitor of film. Major studio distribution executives denied superior offers from CINEMAS PALME D'OR for significant releases because of Cinemark's penchant for strong-arming and threats to retaliate by denying studio distributors critical runs in other markets.

"Instead of receiving a proportion of available film product, we got virtually no meaningful film product," Mason explains. "Absolutely nothing, except for very small releases."

To this day, CINEMAS PALME D'OR is denied the majority of commercial studio releases. Such predatory behavior by Cinemark is known as "circuit dealing," which has been ruled illegal under a succession of Supreme Court decisions starting in 1939 and followed by two more recent California Court of Appeals decisions.

Top distribution executives from several major studios are expected to testify when the CINEMAS PALME D'OR lawsuit proceeds to trial in Los Angeles Superior Court.

MEDIA CONTACT:
Carl DiOrio, Cinemas Palme D'Or publicist, 310-415-9003, carldiorio@gmail.com

SOURCE CINEMAS PALME D'OR

CINEMAS PALME D'OR

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