Scathing Letters

To: Chris Hanley | From: Adam Goldberg

From: Chris Hanley

Subject: Re: i love your work< rejoinder to adam goldberg

Date: November 11, 2004 8:07:57 PM PST

To: dehillary@MuseFilm.COM,,,, lorna@MuseFilm.COM,,

roberta@MuseFilm.COM,, and 1 more…


adam : my notes below : everything you state boils down to one thing: a document was executed giving Fireworks an “approval right” over the north american deal when fireworks inc only had a sales agency position on north american and a second position on recoupment after Cyan. I Love Your Work Inc, of which you are a shareholder and officer , is the owner of the copyright and has entered into an assignment to Fireworks giving such approval rights ; and , Cyan, the primary equity investor did not seek proper legal representation to protect their interests. You are a primary figure of this structure, and seek to blame this on Muse. I , by the way, recommended to David Hillary, another shareholder and officer of I Love Your Work Inc , Fireworks not have any approval rights or position at all other than a passive sales commission on North America. I had no communication or relation with Cyan , no telephone contacts , nor was I privy to the equity financing of Cyan.

On Nov 11, 2004, at 4:14 PM, adam goldberg wrote:

Dear Chris,

I’m sorry to have to write you this and frankly I’m surprised I have even the wherewithal two Novembers since I first began pre-production on I Love Your Work to even bother. But it is important to me that I at least attempt to make you understand how irresponsible and damaging Muse Pictures has been in regard to our film. And if nothing else this might be the e-mail that bookends the compilation of e-mails I intend to publish as an attempt to chronicle the absurd mess that has become I Love Your Work’s life after production.

I suppose I could copy David Hillary, the man initially and perhaps ultimately responsible for the most obscene lack of communication or intentional miscommunication to which I have ever bared witness, but my experience with him–a defensive and volatile personality–tells me that will only lead to more vitriol. Furthermore, as Muse’s founder and president, the buck stops with you.

>yes , david hillary was the person that arranged the relationship and some of the equity financing; provided the attorney and post deals and so forth, and was an in house producer at muse , but not an employee of muse , free to work outside of muse. he has not been working with muse for well over a year , starting up a venture with tim peternel and , in fact, working with the attorney doug wroan who did production legalon ILYW.

There is far too much to relate and perhaps only by forwarding you the countless e-mails

>I have not gotten countless email; nor had I ever, by the way, given even copies of the agreements for the financing from Fireworks, and the equity group in NYC , Cyan — although , just yesterday , Doug Wroan , the production legal dropped off 6 boxes of materials at our office. By the way , Muse was never shown the underlying corporate documents where I was on the corporation , with , I believe , you and david hillary. I certainly requested these documents copies as well as the financing document copies , but david ( who was not employed by Muse as I said and who kept Muse and me out of the full details of the corporate structure — I believe that you and I are both shareholders of the corporation I LYW with David Hillary. I have dropped out of communication with you completely since last February due to comments you made about Muse and my self to Tim Peternel and Tony Howard –life if too short to not appreciate that my company name was used for financing to be vituperated for reasons known only to yourself. So I discontinued communications.

which as I said chronicles this marathon could I really paint a vivid picture of the last year and a half for you. And the fact that I would even have to fill you in on these farcical miscommunications and manipulations is inherent in the problem. Why has it been of no interest to you and your company–which as I understood it prided itself on protecting filmmakers and distributing their films–to stay involved with the production?

>As I said , you were quite clear about insulting me some many months ago and therefor I discontinued working on the project entirely. However, I did at the request of Tony Howard, who I have know for years and think highly of, and therefor would do anything for, meet specifically on the matter of THINK film distributing ILYW in Toronto with the obstacle of having to get an approval from the media owner Canwest of the erstwhile Fireworks ( who had approval rights over the north american distribution agreement as sales agent worldwide ). I discussed this with Sloss ( the ILYW sales agent for North America) , Danny Diamond ( former international at Fireworks and now working with Seven Arts) , Doug Wroan ( production legal) , and Jeff Sachman of Think Films. This was quite complicated to resolve as the Cyan group that invested equity in the movie , substantial equity, had in the agreements with Fireworks agreed to give an “approval right” over North America — this was something I noted to David Hillary in the deal making with Fireworks ( which I did not do in any way ) that there not be any such limiting factor on being able to close a deal on North America where the Fireworks investment only had a second position interest in the deal , while the equity investor Cyan had a first position interest. I have not seen the agreements and have requested them. I am not the only member of the corporation that owns the copyright and for some reason my request has not been satisfied.

Is Muse’s interest and occupation merely to find money to produce films? It has always been my understanding that a producer (i.e. Hillary) sees a film through at least its post-production if not its distribution. If for one moment you or Hillary contend that I was protected by my producing partner, Adrienne Gruben, that is laughable considering I was promised I could bring my producer in–but then had to pay out of pocket to subsidize her employment by ILYW Inc. after which time she was not even granted a legitimate producer credit!

>I did not comment in any way to limit your producer from getting a credit that you deemed appropriate. I am not sure where the negotiation to limit credits on the film took place.

This, when everybody and their mob boss got a producer credit on my epic openly title sequence. Where are all these producers now?

At the end of the day, Chris, I am left having to employ my lawyer and new agents to help facilitate the Sisyphian battle to convince Fireworks (that is, what’s left of it–strangers, CEOs in Canada I never met,

>I asked Danny Diamond to please give me the telephone numbers of these individuals that , as I said , really have no financial stake in holding back distribution on the film in north america. heard of, or upon whom I signed off) to ALLOW us to distribute the film through ThinkFilm–who made us on offer in June! Having reviewed both the contracts made with Cyan and Fireworks, it is clear that Cyan never had a chance.

>I am reading responding to your email as I am reading it, and , I wholly agree with you that Cyan did not do a proper contract to protect their interest — it is , as I noted , a contract that goes categorically against the advice I gave at the time prior to closure of the negotiations with Fireworks. Why Cyan would not have approval over North America where Cyan was in first position I cannot fathom; but I did not participate in Cyan due diligence, and was not at the time , nor later , given the contracts.

The 1 page vagary that I only recently have been privy to makes only an oblique reference to Cyan’s oversight of domestic distribution. Fireworks meanwhile owns the film–ALL RIGHTS to the film as well as being its sales agent. Now then, why when Micah from Cinetic asked me several times (and in an e-mail which I’ve saved from August of 2003) if Daniel Diamond or any other representative of Fireworks needed to sign Cinetic’s engagement letter, was the answer “No,” Why did David Hillary sign on behalf of the film Muse effectively sold to Fireworks?

>Neither Muse , nor I , did not sell the film to fireworks ; where did you get this? David Hillary , by the way as I pointed out could not sign for Muse, but only for any entity that you and he set up , I Love Your Work Inc. I do not understand why you did not see the agreements either — I do not believe that I have a copy of the corporate documents for I Love Your Work Inc for that matter. Perhaps the boxes dropped off yesterday by Doug Wroan production legal for ILYW Inc contains all documents. The underlying copyright is with ILYW Inc and a officer and shareholder would have had to sign with Fireworks, and with the Bank that financed Fireworks

Christina Ricci has had to threaten Fireworks that she’ll take her name off the film if they decide to dump it to DVD.

>Fireworks does not exist anymore and Canwest owns newspapers etc ; they simply have no position in film distibution at this time. Christina’s name removal is leverage for everyone in this film , and ex -members of Fireworks , like Danny Diamond ( who will think he may have to encounter Christina for future movies ); but the problem with Canwest is they are not in the business. Therefor the motivation is just a request to deal with paperwork — I seriously doubt they are blocking this for any reason having to do with their sense of profits , as they have no financial stake other than a commission that is low on the North American side of the deal. I believe they simply are not dealing with this business anymore. That is the impression I got in my meeting with Danny Diamond on this matter in Toronto.

That, alas and shamefully, has been our only leverage–in a film with 25 “producers!”. There are many sources of this miasma: Cyan’s naivete, Fireworks’ monetary interests, my total creative immersion in the project coupled with my own naivete regarding overlooked business matters–but I simply don’t understand what Muse had to gain by being so apathetic and by Hillary being so carefree, if not duplicitous.

>I have been ” apathetic ” as you note because when you had informed everyone in various agencies , and personal friends, even as far as one year ago , of how Muse had treated you badly, and again last february during the AFM period , I do not see how or why Muse should be putting time into a movie only to be insulted. And the owner of the movie is ILYW Inc , of which I believe I am not the primary signatory, was not given full consultation on the ILYW documents entered into despite requests of which both you and David Hillary are the primary shareholders and officers —

I am not looking for help–it’s far too late for that–nor am I seeking a response. I am merely purging the last of the poison that has made me so sick and and cynical this past year. And to let you know why no non-producers associated with my film will be working with Muse in the future.

>well I will tell you what Adam , I shall put this on my website , and perhaps when you and david hillary form a corporation and elect in your sole discretion to not consult with me, and you do not do anything but insult me for your own lack of focus on documents which you again, in your sole discretion , had primary control over and did not consult with me on , you will learn next time who is to blame, vz., yourself.

This e-mail was directly prompted from a phone call I received by Doug Wroan who told me all of the ILYW paperwork was being dropped off at your office. That is both ironic and frightening. Therefore, I have copied my representatives on this e-mail to at least assure there is a paper trail of a paper trail.

>since you have misrepresented the facts and sent this to various representatives that I do business with and firmly state herein that you are obstructing my being able to do business with members of the film community based on your erroneous judgment , I suggest you have your attorneys give me a call to see how you are going to resolve the legal issue that you have now created in hurting my reputation when you are unable to face the facts that you created your own errors in judgment closing deals which you were in full knowledge of ( whose signature is on the Fireworks deal , it is ILYW Inc is it not ? Is that not a company that you control to an extent no less than myself?

>Until such time as your legal settles the matter with your misrepresentations of Muse and you remove the threats , I shall hold the legal documents.

Chris H Muse