On Wednesday, April 2, a six-year legal battle over Kenneth Lonergan’s film Margaret, released in 2011 ended. The parties to the suit, Lonergan and the film’s financier, Gary Gilbert, came to a settlement agreement that was recently executed.
In 2005, Gilbert and Fox Searchlight (Fox) agreed to split about $12.6 million in production costs for the film Margaret. In 2007, Gilbert became unhappy with the result of the film’s final cut and according to Lonergan, attempted to seize control of the film despite not having cutting rights as an investor.
Fox accepted Lonergan’s version of the film in 2008 and attempted to invoice Gilbert for nearly $6.2 million of production costs. According to Fox, Gilbert had “invented a number of flimsy excuses” to not pay the invoice. Fox sued Gilbert in 2008 for allegedly reneging on the co-financing agreement.
Gilbert and Fox came to a settlement in 2011 and the film’s initial cut had an extremely limited release. Yet the legal battle surrounding the film was not over. Gilbert pursued counterclaims against Lonergan for breach of the director agreement. Gilbert demanded more than $8.2 million in damages for allegedly never receiving the benefit of his bargain as a co-financier. Gilbert contended that Lonergan never delivered a final cut and “did not promote the film in any way, shape, or form.”
Lonergan presented evidence that he gave the film ample support at film festivals and screenings. Lonergan claimed that Gilbert’s claims were an attempt to bully him and cause him anguish and distress.
Although the case went to trial in October of 2013, it didn’t get far. On day two of trial, Gilbert and Lonergan came to a resolution. Lonergan agreed to pay Gilbert five percent of any writing assignment he gets from a studio in the future. However, if Lonergan choses to never write another film, Gilbert will see nothing. It wasn’t until recently that the settlement was finally executed. Gilbert then filed a formal request to dismiss the case. Although Margaret is critically acclaimed, starring Matt Damon and Matthew Broderick, its popularity was shadowed by a six-year legal battle.
Six-Year Legal Battle Over Kenneth Lonergan’s ‘Margaret’ Finally Ends (Exclusive)