2 Hawaii nonprofits sue
California film company
Two affiliated nonprofit organizations have accused a California-based production company of breach of contract for allegedly failing to pay back more than $250,000 as part of a refund on a $1 million investment into two film projects that never got under way.
The suit was filed by Unity House Inc. and affiliate Hawaii Pacific Cinema Development Foundation in Circuit Court yesterday. It alleges that Beacon Edge Pictures LLC failed to deliver on an agreement to "fund, distribute and produce" the motion pictures "described as 'The Hawaiian Legends of Heavenly Road' and 'Half-Pipe (Hawaii).'"
The nonprofits invested $1 million in the projects more than a year ago, and have since been refunded about $750,000. The suit seeks the remainder of the refund.
"We've waited long enough," said attorney Randall Harakal, who filed the suit for the nonprofits. "They've given every excuse, but they haven't provided the money yet."
Beacon Pictures President and Chief Executive Gayle Dickie could not be reached for comment last night. She is also listed as a defendant in the suit.
On its Web site (www.beaconedge.com), Beacon Pictures calls itself an "entertainment and media" company that "develops, finances and produces motion pictures, television and new media content."
Harakal said the nonprofits made the investment in hopes of bringing jobs into the state. The Hawaii Pacific Cinema Development Foundation, which is headed by Unity House President Tony Rutledge, works almost solely to attract television and movie projects to the islands.
"Unity House is willing to work in various media to help put jobs in the state," Harakal said.
The nonprofits' suit says Beacon Pictures had agreed to spend $10 million on the project if the nonprofits agreed to put in $1 million. The nonprofits allege that "Dickie, on behalf of herself and Beacon, promised to spend the money on the production" of the projects.
Also according to the suit, Beacon had agreed to put $2.5 million into a California bank account by May 30, 2003, as part of the company's $10 million pledge. If the money was not deposited by the deadline, the suit alleges, the nonprofits' $1 million investment was supposed to be refunded. But when the money was not deposited, the nonprofits did not get their refund.
