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Friday, August 16, 2019
Update on Legal Matters for HHSE / Impacting Form 10 Filing
Greetings HHSE Friends & Followers - Another week has passed, and to those on the outside looking in, it may appear that there has not been forward progress on key HHSE legal matters. This would not be a correct assumption. Here's a quick bullet point summary:
1). JSJ - TEXAS & ARKANSAS - attorneys are engaged in both domiciles and motions are prepared to freeze collection activities as well as seek damages. Because the HHSE attorney's are communicating with JSJ counsel, we have been advised to not disclose the status of such discussions or pending motions. But we feel quite confident of a favorable outcome for HHSE regardless of the details and final action chosen.
2). LEWIN VS HANNOVER HOUSE - Arkansas counsel has been engaged to prepare the motion to oppose the foreign judgment. Based on the fact that there was never any agreement for $1.3-mm as alleged by the Plaintiff... or that the HHSE officers "personally guaranteed" this non-existent verbal agreement... our corporate counsel is confident with this Arkansas adjudication strategy.
3). UPTONE PICTURES - A near identical filing as with the Lewin matter (above) is being pursued for the bizarre case of Uptone Pictures suing HHSE for Uptone's failure to fund the Prints & Ads costs for "UNION BOUND." It is a laughably meritless case, bordering on fraud against the California courts.
4). DAISY WINTERS & GETTING GRACE - Both matters are progressing through the glacially slow legal processes of their foreign state actions; we await the opportunity to have each case adjudicated and dismissed under Arkansas law.
It may be interesting to note that after changing the company's release strategy (to avoid lower-end productions and inexperienced program suppliers), that the company has not endured ANY NEW disputes or lawsuits following the 2017 release of DAISY WINTERS. Granted, that's only been 19-months, but it's such a relief to only be working now on higher-profile titles with industry veterans, and avoiding the distracting and delusional expectations of first-time film producers. The higher profile titles are also easier to sell and more profitable... so there are many benefits to this adjustment in the company's acquisition strategy.
Stay tuned for major news on event-level title activities for Hannover House.
Onward....
