Narcos: The Battle of the Titans
The hit television show “Narcos” is fascinating in front of and behind the camera. This is the second lawsuit involving the team behind the thrilling Netflix series in recent years. Both suits dealt with money with the plaintiffs arguing they did not receive what was rightfully owed to them under their specific agreements.
In 2018, Katie O’Connell Marsh, the former CEO of Gaumont International Television, now called Gaumont Television USA, sued the production company in California state court for breach of contract and breach of the implied covenant of good faith and fair dealing.[1] Marsh alleged that she did not receive the contingent compensation under her agreement for developing series at Gaumont, for shows such as “Hannibal” and “Narcos.”[2] Her contract stated that “she would receive an incentive and contingent compensation, including a 2.5% share of the gross receipts derived from each television series produced by GIT and distributed in the U.S. while she was employed by GIT, minus few agreed upon deductions.”[3] Such contingent compensation increased to 3% when she signed a second three-year deal.[4] According to Marsh, even though she did what she was supposed to, she did not receive the contingent compensation.[5] Furthermore, she highlighted that she believed and has information that Gaumont did receive substantial gross receipts from the projects she developed.[6]
In 2022, a follow-up, second lawsuit related to “Narcos” profits was filed, where Director Jose Padilha sued his producer partner and showrunner, Eric Newman.[7] The lawsuit filed stated that Newman concealed revenue from Padilha and did not receive what he was entitled to under their profit-sharing agreement.[8] The contract provided that “each party receives an equal amount of Gross Proceeds at all times,” and according to the suit, the respective production companies of Newman and Padilha, called Spahn Ranch and Cold Mountain, report and account to each other all the proceeds arising from “Narcos.”[9] Yet, according to Padilha, Newman was paid several million dollars by Gaumont that have not been reported.[10]
So, what occurred to these two lawsuits regarding profits? They both settled in 2022, in October and November, respectively.
The first lawsuit could be a Netflix limited series, as it was a long and steamy affair. If you were to make it happen, Netflix, please give me profit participation. Marsh filed the complaint in February 2018, a few months after Gaumont filed its complaint against her, alleging that they did not pay her because she breached the termination agreement by disclosing the company’s trade secrets.[11] An October 17, 2022 trial was scheduled, but before the trial’s commencement, the court trimmed the case against Marsh just to one claim, for breach of contract, and against Gaumont, to breach of contract and fraud. But shortly before the trial date, the parties filed for dismissal and settled.[12]
The second lawsuit is another story. The prolonged battle above maybe refrained them from pursuing the matter further. The suit was filed in August 2022 and settled in November 2022. [13] But rumors are that Padilah is in arbitration with Gaumont, so the battle of the titans may still live on.[14]
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