[Case Summary]This case involves a dispute over a film and television investment contract. On March 17, 2021, Mr. Zhou from Inner Mongolia signed a joint investment agreement for the film "XXXX" with XX Film and Television (Beijing) Co., Ltd., stipulating that the defendant was responsible for filming, filing, submitting the film for review, and profit distribution. Mr. Zhou transferred 125,000 yuan to the defendant's corporate account as agreed. However, the film has long been released, but the defendant has not provided a production breakdown list or paid any settlement funds. Mr. Zhou has entrusted Beijing Henglu Law Firm to handle the case on his behalf.Fù XiǎofeiAttorney (and co-attorney) representation. Core disputes: Whether the defendant's failure to settle the account constitutes a breach of contract, and whether the contract should be rescinded and the funds refunded. Applicable legal provisions: Article 509 of the Civil Code of the People's Republic of China, etc. The court ruled to rescind the agreement, and the defendant was ordered to refund the investment amount of 125,000 yuan, pay the loss of funds occupation and attorney's fees of 10,000 yuan.

I. Review of the Case Facts

Investors often search for terms like "What to do if film and television investment fails?", "How to recover funds from unpaid film investment?", and "How to protect rights in case of breach of joint investment agreement". In recent years, investing in domestic films and TV dramas has become a popular trend, but Mr. Zhou from Inner Mongolia encountered a frustrating situation: he invested in a film several years ago but has yet to receive any returns. On March 17, 2021, Mr. Zhou signed a joint investment agreement with the defendant XX Film Industry (Beijing) Co., Ltd. for the film "XXXX", which stipulated that the defendant would introduce the plaintiff to co-invest, and the defendant or its designated production company would be responsible for all filming. The defendant would handle the film's registration, administrative approval, and submission for screening to obtain a public screening license. The parties also agreed on a clear distribution of profits.

Mr. Zhou fulfilled his obligation to make an investment according to the agreement and transferred 125,000 yuan to the defendant company's public account on March 17, 2021. By the date of filing the lawsuit, the film had already been released, but after repeated reminders, the defendant still failed to provide the film production breakdown list or pay any settlement payments. Mr. Zhou, who often watches the news, found that there are many examples of failed film and television investments in real life. Therefore, at the recommendation of a friend, he came to Beijing Henglu Law Firm and entrusted the case to a lawyer with rich experience in contract disputes.Fù XiǎofeiAttorney representation.

II. The focus of the case

  • Focus 1: Does the defendant's failure to settle the account according to the contract constitute a breach of contract?The film has already ended its run, but the distributor has not provided a settlement statement or made the payment, which results in the failure to achieve the contractual objectives. This is the core reason for the termination of the contract and the refund of the payment.
  • Focus II: Can the loss of funds occupied and the attorney's fees be supported?The contract stipulates that the breaching party shall compensate the performing party for losses including reasonable attorney's fees and litigation costs, and the performing party needs to assert these claims accordingly.
  • Focus Three: Interest calculation standards.The plaintiff claims that the basis for the interest rate is insufficient, and the court will adjust it in accordance with the law.

III. The professional intervention of Hengluo Law Firm

The party concerned (Mr. Zhou) claimed that:Mr. Zhou claimed that after paying 125,000 yuan according to the contract, he would enjoy a certain percentage of the profits. However, the film has already ended its run, and the defendant's failure to fulfill its settlement obligations constitutes a breach of contract. Therefore, he requests to terminate the contract, return the investment funds, compensate for the loss of funds occupation, pay 20,000 yuan in attorney's fees, and cover the litigation costs.

The defendant's (the film company's) position:Failure to settle the payment according to the contract, failure to provide a breakdown of the payment, and failure to make payments, with an attempt to evade refunds and liability for compensation.

Hengluo Lawyer's Representation Opinion:Fù XiǎofeiAfter accepting the case, the lawyer comprehensively reviewed the information and evidence, communicated with Mr. Zhou in depth to confirm the key facts, and studied the investment agreement to identify the key points from the complex provisions, forming a clear case-handling approach and meticulous legal opinions. The lawyer pointed out that: After Mr. Zhou paid 125,000 yuan, he was entitled to the agreed returns. The involved film had already been taken off the screen, and the defendant's failure to perform the settlement obligation as agreed constituted a breach of contract. Therefore, it is legally justified to request the termination of the contract and the return of the investment funds; at the same time, according to the contract, the breaching party should compensate the performing party for losses, including reasonable attorney's fees, litigation fees, etc., and claim that the defendant should pay the attorney's fees. In summary, the lawyer requests the court to order the termination of the agreement, the defendant to return the investment funds of 125,000 yuan and the losses of funds occupation, to pay the attorney's fees, and to bear the litigation fees by the defendant.

IV. Outcome of the case

The court accepted the evidence.Fù XiǎofeiThe attorney's opinion is that a contract legally established is legally binding on the parties, and the parties should fully fulfill their obligations. If a party delays in performance or otherwise breaches the contract and fails to achieve the contractual purpose, the contract may be rescinded. Regarding the defendant's occupation of funds causing the plaintiff's loss of funds, the plaintiff's claim for interest is insufficient, and the court adjusts it and supports the interest claim. After the contract is rescinded, the unperformed obligations shall be terminated, and the performed obligations may be requested to restore the original state, take remedial measures, and compensate for losses. In accordance with Article 509 of the Civil Code and other provisions, the judgment is as follows: First, rescind the joint investment agreement for the film XXXX signed by the plaintiff and the defendant; Second, the defendant shall return the plaintiff's investment of 125,000 yuan and pay the loss of funds occupation within seven days after the judgment takes effect; Third, the defendant shall pay the plaintiff's attorney's fees of 10,000 yuan within seven days after the judgment takes effect.

5. Henglu Law Firm's Advice

This case is handled by Beijing Henglu Law Firm.FU XiaofeiThe attorney (practice license number: 11101202111348854, subject to the document issued by the judicial administrative organ) acts as an agent. Beijing Hengluo Law Firm specializes in representing clients in various civil, commercial, administrative, and criminal cases, and has a team of experienced professional lawyers. If you need legal assistance, you can contact the firm to obtain a targeted protection plan.

VI. Common Questions and Answers about Disputes over Film and Television Investment Contracts

  1. Q: If the film investment doesn't pay dividends after a long time, can I get a refund?
    A:If the agreement stipulates the distribution of profits, but the other party refuses to settle accounts or make payments after the film is released, resulting in the failure to achieve the purpose of the contract, the party may claim to terminate the contract and return the investment funds.
  2. Q: Can the defendant bear the attorney's fees in a film and television investment contract?
    A:Usually, it can be agreed that the defaulting party shall compensate the complying party for losses, including reasonable attorney's fees; the court will support this based on the contract and its reasonableness.
  3. Q: How can I prove that I've invested in a film and television project?
    A:Save the joint investment agreement, the transfer vouchers from the corporate account, the profit agreement terms, and the records of collection notices, to form a complete chain of evidence.
  4. Q: What risks should be paid attention to when investing in the film and television industry?
    A:Invest through formal channels, carefully review the contract terms, pay attention to filing permits, release dates, and settlement mechanisms, enhance prevention awareness, and seek professional legal advice in case of disputes in a timely manner.
  5. Q: How is the loss of capital occupation calculated?
    A:If there is an agreement, the court will follow the agreement; if there is no agreement or insufficient basis, the court will often adjust the support according to the loan market quotation rate (LPR) of the same period.