Home > News > Video News > Jury Awards Erik Everhard $141K in Red Light District Case • Bookmark   • Newsletters   • Register Search Options

NEWS STORY

Jury Awards Erik Everhard $141K in Red Light District Case

Jury Awards Erik Everhard $141K in Red Light District Case
Get XBIZ News
XBIZ Research
Will virtual reality headsets like the Oculus Rift revolutionize adult entertainment?
Yes
  53.19%
No
  46.81%
Out of 94 votes. Results based on votes submitted by members of XBIZ.net social network.
XBIZ 360 - Jan. 13-16, Los Angeles
Dec 19, 2007 1:00 PM PST    Text size: 
CHATSWORTH, Calif. — Mitchell Hartwell, aka Erik Everhard, and his production company Erik Everhard Entertainment, were awarded $141,000 by a Chatsworth jury yesterday in a lawsuit he filed against Red Light District claiming breach of contract and two counts of conversion.

The amount awarded to Erik Everhard Entertainment was three times what World Wide Red Light District and RLD Distribution claimed it owed him.

The trial lasted two weeks and a number of adult industry members testified including John LaForme, aka Vince Vouyer, and former RLD President and co-founder Dion Giarusso. Sean Macias represented Hartwell and in-house counsel Ray Tamaddon represented RLD.

Erik Everhard Entertainment filed suit in January 2006 asking for $475,000 in monies owed.

“The charges stem from a breach of contract of a video distribution oral agreement that Erik Everhard entered into with World Wide Red Light,” Macias told XBIZ. We also sued for conversion on two counts.”

Both sides engaged in settlement talks prior to trial Tamaddon told XBIZ with Red Light offering Hartwell $100,000 to avoid litigation, a figure he rejected.

“Once the lawsuit was filed, we entered into a court ordered stipulation that World Wide Red Light wasn’t going to sell Everhard’s product," Macias said. "They agreed to maintain it for an audit and said World Wide wouldn’t sell it. So guess what? Another company under the RLD umbrella, RLD Distribution, which we found out about upon discovery, had started selling [the DVDs]. They started remastering some of our movies so we had to go back into court and added RLD Distribution to the suit because we couldn’t trust them.”

The jury found in favor of Erik Everhard Entertainment on all three of its claims.

In a legal maneuver, Red Light filed a cross complaint prior to trial, which claimed that Hartwell owed them $173,000. The complaint was dropped a day before the trial started when Red Light acknowledged that it actually owed Hartwell $52,000.

“At trial we admitted that we owed Erik $52,000 and the jury wound up awarding him $141,000 which we considered excellent results considering they thought they were owed $650,000,” Tamaddon said. “Red Light has been vindicated, especially in light of all the accusations made during the trial and on gossip sites.”

Tamaddon said that when Hartwell initially filed the suit, Hartwell owed Red Light District money because the company had paid for all his production costs and advanced him royalties. Tamaddon claimed that Red Light had yet to be paid for Everhard’s product on numerous outstanding invoices.

During the course of litigation, Red Light started receiving funds from the sale of Everhard’s product so “the needle moved” and the company owed Hartwell money on the open accounts, which are now being paid.

“Initially, when he filed the complaint, Erik Everhard’s account with RLD was still negative because of all the money Red Light has advanced him so we filed a cross complaint because he owed us money,” Tamaddon said. “During the course of the lawsuit we collected on accounts receivable on behalf of Mr. Everhard and his account turned positive. Once we found we owed him money, we dropped the cross complaint.”

As part of the suit, Hartwell gained full control of the 23 titles he produced and owned when at Red Light. Jules Jordan Video has been distributing Erik Everhard Entertainment since October 2006.

“I’m very pleased the jury saw things the way they did,” Macias said. “[RLD’s] shoddy and suspect accounting was exposed. It sends a message to the industry, I think. My client worked, made movies and wanted to be paid for his efforts. That’s all any businessperson wants, to be paid for their work. Justice was served here.”

Hartwell added: “Thankfully the jury realized how egregious the defendant’s behavior was and acted accordingly. We are thrilled with the outcome.”

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !

PROFILES & BIOS

Vegas Baby! Hot House Looks Forward to a New Era by the Strip

While Christian Owen knew that a change was coming for Hot House Entertainment earlier this year, he wasn’t sure exactly when and what. One thing became certain: The building that housed the company’s... More »

WIA Profile: Mia Hyun

Each month, industry news media organization XBIZ spotlights the career accomplishments and outstanding contributions of Women in Adult. WIA profiles offer an intimate look at the professional lives of... More »

Exec Seat: Q&A With ExoClick's Richard Cottrell

ExoClick last summer announced the expansion of its workforce with four new hires, one of whom is online advertising industry veteran Richard Cottrell. Cottrell joined the company as global sales director... More »
XBIZ NEWSLETTERS
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.






POPULAR PRODUCTS & SERVICES
Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ Premiere magazine, the industry's leading adult retail trade publications, delivering the most timely and comprehensive business news and information to producers and retailers of adult products.

UPCOMING EVENTS

ANME Show

Jan 12 - Jan 13
Burbank, California

XBIZ 360

Jan 13 - Jan 16
Los Angeles, CA

XBIZ Awards

Jan 15 - Jan 15
Los Angeles, CA

QWEBEC Snow Gathering

Feb 20 - Feb 23
Quebec City, Canada
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!