ECKSTEIN v. BALCOR FILM INVESTORS

Nos. 92-1851, 92-2510.

8 F.3d 1121 (1993)

Robert ECKSTEIN, et al., Plaintiffs-Appellants, v. BALCOR FILM INVESTORS, et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided August 20, 1993.


Attorney(s) appearing for the Case

Robert S. Schachter, Robin F. Zwerling (argued), Zwerling, Schachter & Zwerling, Jules Brody, Mellisa R. Emert, Stull, Stull & Brody, New York City, Michael S. Glassman, Clemens, Glassman & Clemens, Los Angeles, CA, for Robert and Sylvia Eckstein in No. 92-1851.

Mary Ellen Hennessy, Amy E. Smith, Katten, Muchin & Zavis, Chicago, IL, Dennis M. Perluss, Pauline Levy, Hufstedler, Kaus & Ettinger, Los Angeles, CA, John A. Lawrence, Richman, Lawrence, Mann, Greene, Arbiter & Chizever, Beverly Hills, CA, for Balcor Film Investors in No. 92-1851.

Steven L. Bashwiner (argued), Mary Ellen Hennessy, Amy E. Smith, Katten, Muchin & Zavis, Chicago, IL, Dennis M. Perluss, Pauline Levy, Hufstedler, Kaus & Ettinger, Los Angeles, CA, John A. Lawrence, Richman, Lawrence, Mann, Greene, Arbiter & Chizever, Beverly Hills, CA, for Balcor Entertainment Co., Balcor Co., Balcor Securities, Jerry M. Reinsdorf, Robert A. Judelson, James E. Finley, Gregory Junkin, Barry Jackson, Joseph A. Kruszynski and New World Entertainment Ltd. in No. 92-1851.

W. Stuart Parsons, Quarles & Brady, Milwaukee, WI, Steven L. Bashwiner, Mary Ellen Hennessy, Amy E. Smith, Katten, Muchin & Zavis, Chicago, IL, Dennis M. Perluss, Pauline Levy, Hufstedler, Kaus & Ettinger, Los Angeles, CA, John A. Lawrence, Richman, Lawrence, Mann, Greene, Arbiter & Chizever, Beverly Hills, CA, for Lawrence Kuppin, Robert Rehme in No. 92-1851.

Colleen A. Scherkenbach, W. Stuart Parsons, Quarles & Brady, Milwaukee, WI, Steven L. Bashwiner (argued), Mary Ellen Hennessy, Amy E. Smith, Katten, Muchin & Zavis, Chicago, IL, Dennis M. Perluss, Pauline Levy, Hufstedler, Kaus & Ettinger, Los Angeles, CA, John A. Lawrence, Richman, Lawrence, Mann, Greene, Arbiter & Chizever, Beverly Hills, CA, for Harry Sloan in No. 92-1851.

David B. Kahn, Mark E. King, Chicago, IL, for Plaintiff Class amicus curiae.

George P. Kersten (argued), E. Campion Kersten, Bruce J. Landgraf, Kersten & McKinnon, Milwaukee, WI, Jerry H. Friedland, Maria Lazar, Galanis & Friedland, K. Scott Wagner, Hale & Lein, Milwaukee, WI, for Ralph Majeski, Joseph Yach, Janice Waisman, Larry R. Peterson, Thomas Weil, Lee Aldridge, Randy Karpinsky, Kenneth Kulas, Robb S. Elliott and Raymond Harding in No. 92-2510.

Steven L. Bashwiner (argued), Mary Ellen Hennessy, Amy E. Smith, Katten, Muchin & Zavis, Chicago, IL, for Balcor Entertainment Co., Balcor Co., Balcor/American Exp. Inc., Balcor Securities in No. 92-2510.

Terry E. Mitchell, Mitchell, Baxter & Zieger, Milwaukee, WI, H. Nicholas Berberian, Jerry M. Santangelo, Robert J. Mandel, Neal, Gerber & Eisenberg, Chicago, IL, for Shearson Lehman Hutton, Inc. in No. 92-2510.

Before CUMMINGS, COFFEY, and EASTERBROOK, Circuit Judges.


EASTERBROOK, Circuit Judge.

By late 1984 New World Entertainment, Ltd. (New World) had experienced some success making and distributing low-budget movies. New World approached Balcor Entertainment Company, Ltd. (BEC), a subsidiary of Shearson Lehman/American Express, Inc., to solicit working capital. New World wanted to expand; BEC wanted some of the profits to be made in movies. There were the makings of a deal: BEC would obtain financing for New World's films in...

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