[Case Summary]This case involves a dispute over a film and television investment contract. On January 26, 2021, Liu * and Company A signed a "Transfer Agreement for Online Film Revenue", under which Liu * invested 100,000 yuan to acquire a 0.606% investment income right in the film. However, the film failed to obtain the filing permit from the National Film Administration, and it was still not released far beyond the agreed release date, making it impossible to achieve the contractual purpose. After repeated unsuccessful communication, Liu * entrusted Beijing Henglu Law Firm to handle the case.Wang DongThe lawyer filed a lawsuit on behalf of the client. The core disputes are whether the contract should be terminated, and whether the investment funds, interest, and attorney's fees should be returned. The applicable legal provisions are Article 577 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law. The court ruled to terminate the contract, and the defendant was ordered to return the investment funds of 100,000 yuan within a specified period, pay interest (based on 100,000 yuan and calculated at the one-year LPR rate from May 11, 2023), and compensate for the attorney's fees.

I. Review of the case

Film and television investors often search for phrases like "Can I withdraw my investment if the film is delayed in release?", "Is it reliable to transfer the rights to the profits of online films?", and "How to sue for breach of contract in an investment agreement?". In this case, Liu * and Company A signed the "Transfer Agreement for Online Film Profits" on January 26, 2021, which stipulated that Liu * would invest 100,000 yuan and own 0.606% of the investment rights to the film. Liu * fulfilled his payment obligation, but the aforementioned film did not obtain the filing permit from the National Film Administration, and it was far beyond the contractually agreed film release time but still not released. Therefore, the purpose of the contract involved in this case could not be achieved at all.

Liu * contacted and communicated with Company A several times in an attempt to negotiate a solution to the matter, but to no avail. Company A's actions seriously infringed Liu *'s legitimate rights and interests, so Liu * filed a lawsuit with the court through Beijing Henglu Law Firm.Wang DongWith the help of the lawyer, we won the case. The court ruled that the defendant should return the investment funds, the interest on the funds, and the lawyer's fees within a specified timeframe.

II. The focus of the case

  • Focus 1: Whether the purpose of the contract is fundamentally impossible to achieve.The core reason for terminating the contract is that the film failed to obtain the filing permit and was not released far beyond the agreed timeframe.
  • Focus II: Whether the investment funds, interest, and attorney's fees should be refunded.The contract stipulates the attorney's fees, and the claim is reasonable. The court supports it.
  • Focus Three: The handling of the defendant's absence from the trial.The defendant's failure to appear in court after being legally summoned does not affect the court's judgment based on the established facts.

III. The professional intervention of Hengluo Law Firm

The party involved (Liu *) claimed that:Liu * claimed that he had fulfilled his obligation to pay, but Company A had failed to fulfill its contractual obligations. Therefore, he was entitled to terminate the contract and demand that Company A bear the liability for breach of contract. He requested the return of the investment amount of 100,000 yuan, the payment of interest, and the reimbursement of attorney's fees.

The defendant's (Company A) position:He/she failed to appear in court in response to the legal summons and did not submit a defense statement.

Hengluo Lawyer's Agency Opinion:Wang DongAttorney Liu * filed a lawsuit, arguing that the legally established contract is protected by law and both parties should abide by it; Company A failed to obtain the filing permit as agreed, and the film was not released, resulting in the failure to achieve the purpose of the contract. Liu * claimed that there are factual and legal grounds for terminating the contract, refunding the money, and paying interest. The contract contains relevant provisions on attorney's fees, and the claimed fees are reasonable, so they should be supported. The defendant failed to appear in court after being legally summoned by the court, which does not affect the court's judgment based on the established facts.

IV. Outcome of the case

The court held that the "Online Film Revenue Transfer Agreement" signed by the plaintiff and the defendant was a true expression of their intent and did not violate mandatory provisions, thus it was legal and valid. The plaintiff fulfilled her investment obligations as agreed, but the film in question has not been released to date, which is deemed as the failure to achieve the contractual purpose. The plaintiff's claims to terminate the contract, seek compensation, and demand interest payments are supported by both factual and legal grounds. The court also approved the plaintiff's reasonable request for attorney's fees. The defendant's failure to appear in court after being legally summoned does not affect the judgment. In accordance with Article 577 of the Civil Code of the People's Republic of China and Article 147 of the Civil Procedure Law of the People's Republic of China, the court ruled as follows: 1. Terminate the "Online Film Revenue Transfer Agreement" signed between the plaintiff, Liu * and the defendant, Company A; 2. Company A shall return the investment amount of 100,000 yuan to the plaintiff and pay interest thereon within seven days from the effective date of this judgment (calculated based on 100,000 yuan, at the one-year lending market reference rate announced by the National Interbank Funding Center, from May 11, 2023 until the full payment of principal and interest); 3. Company A shall compensate the plaintiff, Liu * for attorney's fees within seven days from the effective date of this judgment.

5. Hengluo Law Firm's Reminder

This case is handled by Beijing Henglu Law Firm.Wang DongThe attorney (practice license number: 11101201910090334, 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 and 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: The movie has not been released yet. Can I get a refund for my investment?
    A:If the film has not obtained the filing permit and is not released far beyond the agreed time, the contractual purpose cannot be achieved, and the investor may claim to terminate the contract and return the investment funds and interest.
  2. Q: What should I pay attention to when signing a transfer agreement for the rights to the profits of an online film?
    A:Review the qualifications and credibility of the counterparty, pay attention to the investment ratio, profit distribution, project progress, release timeline, and breach of contract liability, and conduct a thorough risk assessment.
  3. Q: Can I get back the attorney's fees mentioned in the investment agreement?
    A:The contract stipulates that the defaulting party shall bear reasonable attorney's fees, and if the defaulting party claims reasonable fees, the court usually supports the defaulting party's compensation.
  4. Q: Will the defendant's failure to appear in court affect the verdict?
    A:If the defendant refuses to appear in court without a valid reason after being legally summoned, the court may proceed with the trial in their absence. If the plaintiff's evidence is sufficient, the court will still support their reasonable claims.
  5. Q: How is the interest calculated for film and television investment?
    A:If there is an agreement, the interest shall be calculated according to the agreement; if there is no agreement, the court usually calculates the interest based on the one-year loan market quotation rate (LPR) announced by the National Inter-bank Funding Center from the date of payment due.