Willie Nelson was sued by a movie producer

A movie producer claims in court that Willie Nelson conspired with another producer to push him out of a business he co-founded and that they owe him hundreds of thousands of dollars. Gary Harmon and ISE Entertainment Corp. sued Nelson, Kerry Wallum, Luck Films LLC and Boulder Music Group in Santa Clara County Superior Court on July 17. Wallum sued Harmon on similar charges two years ago in the same court. In his lawsuit, Harmon claims that Wallum approached him in October 2011 and claimed that he and Nelson “wanted to enter into a mutually beneficial association” with him and his company. He says Wallum told him that he wanted “to bring Harmon’s expertise to Luck Films, which was then a fledgling production company, with no corporate structure.”

Wallum also told him that “Nelson had also expressed a desire to work with Harmon, and that Nelson was prepared to provide millions of dollars of financial support to Luck Films and ISE,” according to the complaint.

According to the Morgan Hill Times, a California newspaper, Wallum sued Harmon in 2013, claiming Harmon defrauded him and others by setting up Luck Films LLC, “which is not the same Luck Films production company that was co-founded by Wallum and country music star Willie Nelson. Harmon never repaid the investors, and never intended to do so, Wallum’s lawsuit says,” the Times reported on Sept. 26, 2013.

Wallum and Boulder Music Group LLC sued Harmon et al. on Sept. 23, 2013 in Santa Clara County Superior Court on Sept. 23, 2013, according to the Courthouse News database. Also named as defendants in that lawsuit were Randy Medina, Luck Films LLC, and Morgan Hill Music Company LLC. In his lawsuit, Harmon says that Nelson and Wallum do business as Luck Films, a Nevada LLC. Harmon makes these claims in his 12-page lawsuit:

that he paid $80,000 in expenses for the movie “Of God and Kings,” which was never released and for which ISE never was paid;
that he spent $35,000 in investments and post-production work on the movie “Junction,” which was never released and for which he was not paid;
that he spent more than $50,000 on a pilot episode of a supposed HBO project called “Vince Neil Poker,” and that Wallum’s promise of “an investor at HBO” was false and the show never materialized;
that he paid “tens of thousands of dollars providing Wallum with a monthly stipend,” which Wallum promised to repay but did not;
that he spent $40,000 on the film “Harmony,” for which he was not paid;
and that Wallum got the benefit of his “confidential and proprietary business plan, industry contacts, and related information.”

Harmon claims he and Wallum signed a purchase agreement whereby Luck Films acquired Boulder Creek Guitars, and that Wallum claimed Nelson would contribute nearly all the purchase price, promote the guitars and play them on stage.

He and Wallum then organized a Nevada business called Boulder Music NV, and ISE made regular contributions to its bank account, Harmon says. But Wallum never got any investors for Boulder Creek Guitars or Boulder Music NV, all the while asking for more money, according to the complaint.

Then, Harmon says, Wallum filed papers with the California Secretary of State to form Boulder Music Group or Boulder Music CA, with Wallum as its sole member, and transferred money from Boulder Music NV into the California company.

Then Wallum told Boulder Creek Guitars that Harmon was out of the picture and he wanted to simplify their previous agreement by changing Luck Films to Boulder Music CA as the purchaser, according to the complaint.
Harmon claims Wallum stole thousands of dollars of inventory and equipment from Boulder Music NV’s offices, drained the company’s bank account to put the money in his new business and fled from California to Oregon. He says Wallum’s whereabouts at the moment are “unknown to plaintiffs.”

But in his lawsuit against Harmon, Wallum claimed that Harmon defrauded him of “hundreds of thousands of dollars” by persuading him to invest in Boulder Creek Guitars, claiming he was an owner of the company, which Wallum said is not the case, according to the Morgan Hills Times story.

Finally, Harmon says in his lawsuit, he was publicly ousted by Wallum, Nelson and Luck Films when the company website displayed in large, red, bold print “Luck Films is in NO way associated with Gary Harmon [or] ISE Entertainment.”

That statement could not be found on the Luck Films’ website Thursday morning.

The website, apparently set up in 2010 but updated this year, lists Wallum as one of the company’s six “veteran filmmakers.” It says: “Luck Films produces three to five feature films a year, as well as musical specials, television programs, and Internet content.”

Harmon demands $10 million for intentional and negligent misrepresentation, false promise and fiduciary duty.

He is represented by Martin Dioli, with Terry Law, of San Jose. Neither Harmon nor the defendants could be reached for comment Wednesday.

Source: Entertainment Law Digest
Image credit: Creative Common License