SAG-AFTRA sues Lee Daniels for failing to pay residuals

Lee Daniels has been hit with a lawsuit alleging that he failed to pay residuals or make required pension and health contributions for the performers that worked on his 2005 film, 'Shadowboxer'...

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On Tuesday, SAG-AFTRA hit Lee Daniels with a lawsuit alleging that he failed to pay residuals or make required pension and health contributions for the performers that worked on Shadowboxer, his 2005 film.

In order to get the money the guild claims is owed, they are pursuing forecloser on the film. “Subsequent to the issuance of the [2011 arbitration] award, SAG-AFTRA served a notice of assignment to attach revenue generated by the distribution of the film. While we were able to recover a modest amount of the debt over the last few years, we determined that foreclosure on the film would yield the best result for the cast and therefore sought to confirm the award and move forward with a foreclosure sale at this time. We remain ready to resolve this dispute amicably,” a spokesperson said.

A 2011 decision had awarded the guild $169,630 in residuals, $25,323 in pension and health contributions and $93,544 in late payment liquidated damages, and after waiting four years, SAG-AFTRA is now trying to get a federal judge to confirm the arbitration award.

The guild would not say why it had waited four years to pursue the lawsuit, though there is a four-year statute of limitations, which could explain why the wait was not longer.

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