Tolkien Lawsuit Against New Line Lives On Without Punitive Damages

By Eriq Gardner

Mixed news for the estate of author J.R.R. Tolkien in its lawsuit against New Line over royalties from the “Lord of the Rings” films.

A Los Angeles Superior Court judge has barred the estate from seeking punitive damages on its claim that the studio failed to fork over any royalties from the estimated $6 billion it says the movie has grossed worldwide. Judge Ann Jones agreed with New Line that punitive damages can only be recovered if there's a demonstration of a "public wrong" and that in this case, the estate "is clearly seeking to vindicate private wrongs."

The estate got one victory in the judge's ruling, however, as the case was allowed to proceed on the grounds that Tolkien's heirs have established a legal basis for the fraud claim. The lawsuit takes issue with many of New Line's claimed expenses, including "advertisement" payments made to AOL (also owned by Time Warner) and money for production offices and facilities now being used for other New Line films.

With punitive damages out, the two sides will now be fighting over $150 million in claimed compensatory damages. A trial has been scheduled for October 2009.