The Lawsuits Thread

[SnoopyDances]

Thanks Shaman Art for the document. I browsed through most of it...but the amount lost vs. the amount asked for is curious.
He is only asking for "at least" $25m in damages, yet the suit alleges a much larger amount in losses, loans, properties, and fees. I wonder why he isn't seeking more in damages? You can ask for any amount you want and might get less, but if you ask for less, you rarely get more.

Also, I find it interesting that he is seeking a trial by jury. I wouldn't think he would want a lot of the details made public and the media circus that would surely follow every sordid moment. Of course, trial by jury is often used as a bargaining tool by lawyers to prompt a quicker settlement without going through court or a trial. I'm sure TMG doesn't want a lot of things detailed in a media circus, either. Maybe the plan here is to prompt a quick settlement without acknowledging any wrongdoing by either party.

And another thought comes to mind...since Amber's team was originally demanding his tax and financial records, that Johnny's team fought to keep private...I wonder if she was trying to further undermine his reputation by making his financial issues public. She had to know that he fired TMG and replace them and was probably aware of his debt issues. And Johnny waiting about a year to file claims against TMG make me think he was trying to settle everthing quietly, but got wind of her blowing the whistle. So by going public first, he appears in control of the situation and takes away whatever advantage she might have had with this information. Or, could be, TMG wouldn't play nicely, so he was forced to file suit. All of TMG's other clients are now probably checking their own books.

These financial issues could be the reason Johnny seemed surprised when asked about the sale of his French property, and subsequent sales of art, assets, and property. I wonder if Johnny was behind the sales or TMG. Or a combination of both.

And all of this could be the reason for his recent movie choices. Typically an A-list star would command a salary up front and a percentage of the box office later. I wonder if he was just doing quick gigs to get a salary up front to cover his debts, hoping for box office money later on (that didn't come) or if he opted out of BO money and demanded salary up front. Maybe Tracey couldn't get the types of deals he was seeking to pay off debts.

A lot of this is just speculation on my part, but it does paint a broader picture of the past few years where things seemed to be spiraling out of control for him. Looks like he is doing his best to regain control. I wish him well.

[gipsyblues]

From deepest heart I wish Johnny the best and we fans can only stand by his side. Our thoughts are with him. That's what we can do for him .

[jruoss]

As far as movie choices in regards to this situation, perhaps his decision to get involved in the Fantastic Beasts movies was partially motivated by said situation. Who knows where or if Tracey Jacobs, for example, fits into this puzzle. She did talk him into doing the very pivotal Edward Scissorhands, you can't take that away. On the other hand, every time I've seen her in photograph or video, she looks like someone on the verge of exploding from self induced stress. I don't know if Johnny's parting ways with her has anything to do this whole mess, but I can't think of any other movies he's done since 2012 that would've been partially motivated by these particular money issues. The Lone Ranger was in the works for years. Transcendence never smacked of a blockbuster pay day. Mortdecai was another personal interest movie, though Johnny hinted that he'd have been all for a sequel. Black Mass wasn't something anyone had to talk him into. Pirates 5 has more to do with Disney than Johnny, other than him agreeing to do it. Same with Looking Glass.
Maybe I'm misinterpreting what you mean about recent movies Snoopy Dances, but to me the only thing that really stands out as perhaps indicative of money woes is his decision to get in on the ground floor of what promises to be a five movie juggernaut with Beasts.

[SnoopyDances]

As far as movie choices in regards to this situation, perhaps his decision to get involved in the Fantastic Beasts movies was partially motivated by said situation. Who knows where or if Tracey Jacobs, for example, fits into this puzzle. She did talk him into doing the very pivotal Edward Scissorhands, you can't take that away. On the other hand, every time I've seen her in photograph or video, she looks like someone on the verge of exploding from self induced stress. I don't know if Johnny's parting ways with her has anything to do this whole mess, but I can't think of any other movies he's done since 2012 that would've been partially motivated by these particular money issues. The Lone Ranger was in the works for years. Transcendence never smacked of a blockbuster pay day. Mortdecai was another personal interest movie, though Johnny hinted that he'd have been all for a sequel. Black Mass wasn't something anyone had to talk him into. Pirates 5 has more to do with Disney than Johnny, other than him agreeing to do it. Same with Looking Glass.
Maybe I'm misinterpreting what you mean about recent movies Snoopy Dances, but to me the only thing that really stands out as perhaps indicative of money woes is his decision to get in on the ground floor of what promises to be a five movie juggernaut with Beasts.

Just thinking out loud.
The movie choices could very well have been his for his own creative reasons.
But other celebrities in similar situations suddenly start turning out movies/albums/endorsements (perfume/car ads), books, etc., to help settle financial issues. (bankruptcy filings, lawsuits, divorce settlements, firing/suing business managers, etc.)

[jruoss]

Maybe Tracey wanted Johnny to do some of those things you mentioned. Either way, I feel confident that Johnny has a certain level of personal integrity that he will continue to maintain regardless. I don't expect him to come out with some gossipy book or start appearing on D celebrity reality shows any time soon, or any of that other cashing in on image type stuff.
It's incredible to think this guy would ever have to worry about money again. I do hope this starts a chain reaction that brings down TMG.

[nebraska]

I am sure that most of us can't even imagine the kind of finances Johnny's world entails. I am happy if I can pay the electric bill each month when it arrives and have money left for groceries and a little extra for fun. Millions of dollars would be beyond my comprehension, and I am sure it has been that way for Johnny who came from very humble beginnings. What an awful thing to happen, but it seems to happen too frequently.

[sparralet]

What an awful thing to happen, but it seems to happen too frequently.

Poor Johnny, I agree But it usually is like that, if you're not as greedy as you could be, they're just gonna exploit it. However, I'm sure he's gonna be much more careful in the future... he'll have to be.

[shaman-art]

zillow.com lists the castle and one of the other properties as Pre-Foreclosure.

OCT 26 2016 Home in default $4,287,324 past due The owner of this property has been served a Notice of Default.
JAN 15 2013 Loan issued $5,000,000 A loan was issued by DBA THE MANAGEMENT GROUP on 01/15/13 in the amount of $5,000,000.

[Chocolat]

This is so upsetting.

[justintime]

This is so upsetting.

Yes, Chocolat, gut-wrenching actually. Jruoss said it all in a prior post when he commented:

". . . It's incredible to think this guy would ever have to worry about money again.I do hope this starts a chain reaction that brings down TMG." (my highlighting, not jruoss')

[brunasouzota]

Johnny lost his castle? Someone can clarify it to me, please?

[Femkim62]

Greed and mismanagement is in every sector so it seems. It makes my heart sad, I don't understand why? I'm thinking that a previous post may be right, an overhaul for Johnny is a good thing, to shake off the cobwebs and dust from his life

[tocnavforjd]

Brunasouzota wrote

Johnny lost his castle? Someone can clarify it to me, please?

No - this is just a warning that the castle could go into foreclosure. He still has time to make the required payment.

[justintime]

Brunasouzota wrote

Johnny lost his castle? Someone can clarify it to me, please?

No - this is just a warning that the castle could go into foreclosure. He still has time to make the required payment.

I think the "castle" - JD's primary residence - was going to be foreclosed upon on January 14th, but the filing of the lawsuit at the eleventh hour on the 13th (after the divorce was finalized), may have temporarily stalled TMG's ability to proceed. Timing is everything, eh?

[SnoopyDances]

For those that may not be familiar with a foreclosure process, here is an explanation.

► Show Spoiler

The 6 Phases Of A Foreclosure By Jean Folger | May 4, 2010 — 2:00 AM EDT


Many of us have either gone through the process of foreclosure, a process that allows a lender to recover the amount owed on a defaulted loan by selling or taking ownership of the property firsthand or know someone who has.

Realty Trac released its U.S. Foreclosure Market Report on April 15, 2010 for the first quarter of 2010. The report, which calculates foreclosure filings, including default notices, scheduled auctions and bank repossessions, showed that 932,234 properties were involved in the first quarter, a 7% increase from the last quarter of 2009, and a 16% increase over the first quarter of 2009. An astonishing one in every 138 U.S. housing units received a foreclosure filing during the quarter. If you (or a loved one) are facing foreclosure, make sure you understand the process. While the process does vary from state to state, there are normally six phases of a foreclosure.

Phase 1: Payment Default
A payment default occurs when a borrower has missed at least one mortgage payment. The lender will send a missed payment notice indicating that they have not yet received that month's payment. Typically, mortgage payments are due on the first day of each month, and many lenders offer a grace period until the 15th of the month. After that, the lender may charge a late payment fee and send the missed payment notice.

After two payments are missed, the lender may send a Demand Letter. This is more serious than a missed payment notice; however, at this point the lender is probably still willing to work with the borrower to make arrangements for catching up on payments. The borrower would normally have to remit the late payments within 30 days or receiving the letter. (When you have a tough financial decision to make about your home, make sure you have all the information. Learn more in Fend Off Foreclosure - With Bankruptcy?)

Phase 2: Notice of Default (NOD)
A Notice of Default is sent after 90 days of missed payments. In some states, the Notice of Default is placed prominently on the home. At this point, the loan will be handed over to the lender's foreclosure department in the same county where the property is located. The borrower is informed that the Notice will be recorded. The lender will typically give the borrower another 90 days to settle the payments and reinstate the loan. This is referred to as the reinstatement period.

Phase 3: Notice of Trustee's Sale
If the loan has not been made up to date within the 90 days following the Notice of Default, a Notice of Trustee's Sale will be recorded in the county where the property is located. The lender must also publish a notice in the local newspaper for three weeks indicating that the property will be available at public auction. All owners' names will be printed in the Notice and in the newspaper, along with a legal description of the property, the property address, and when and where the sale will take place.

Phase 4: Trustee's Sale
The property is placed for public auction and will be awarded to the highest bidder who meets all of the necessary requirements. The lender (or firm representing the lender) will calculate an opening bid based on the value of the outstanding loan, any liens and any unpaid taxes, and any costs associated with the sale. Once the highest bidder has been confirmed and the Trustee's Sale is completed, a Trustee's Deed Upon Sale will be provided to the winning bidder. The property is then owned by the purchaser, who is entitled to immediate possession.

Phase 5: Real Estate Owned (REO)
If the property is not sold during the public auction, the lender will become the owner and will attempt to sell the property on its own, through a broker or with the assistance of an REO Asset Manager. These properties are often referred to as "bank-owned". The lender may remove some of the liens and other expenses in an attempt to make the property more attractive.

Phase 6: Eviction
The borrower can often stay in the home until it has sold either through a public auction or later as a REO property. At this point, an eviction notice is sent demanding that any persons vacate the premises immediately. Several days may be provided to allow the occupants sufficient time to remove any personal belongings, and then typically the local sheriff will visit the property and remove the people and any remaining belongings. Any belongings may be placed in storage and retrieved at a later date for a fee. (It's a tough choice, but some people will be forced to foreclose. Others won't. Find out which factors are likely to make the difference in Would You Walk Away From Your Home?)

The Bottom Line
Throughout the foreclosure process, many lenders will attempt to make arrangements for the borrower to get caught up on the loan and avoid a foreclosure. The obvious problem is that when a borrower cannot meet one payment, it becomes increasingly difficult to catch up on multiple payments. If there is a chance that you can catch up on payments - for instance, you just started a new job following a period of unemployment - it is worth speaking with your lender. If a foreclosure is unavoidable, knowing what to expect throughout the process can help prepare you for the six phases of foreclosure.


Saving Your Home From Foreclosure By Pooja Dave


A beautiful home - complete with loving family and wonderful memories - is part of the American Dream. A major part of many peoples' lives is spent turning a home into a dream home. But just because you manage to attain the home of your dreams doesn't mean it will be smooth sailing from there on. Your dream home may entail big mortgage payments, which, in a crisis, could put you at risk of foreclosure.

If your home is at risk of foreclosure, the problem must be tackled at once and with the utmost care - one wrong move could spell disaster. However, by taking the proper steps, this disaster can often be averted. (For related reading, see Are You Living Too Close To The Edge?)

Foreclosure Avoidance Tactics
If your home is at risk of foreclosure, don't start packing - take action! Some of the steps you can take to save your house include:

Reinstatement
When you are behind in your mortgage payments, reinstatement lets you to pay back the amount in lump sum payment (which may include any interest and penalty charges) before a specific date.

Short Refinance
In a short refinance, the lender may agree to forgive some part of your debt and refinance the remaining debt into an entirely new loan.

Special Forbearance
Sometimes, a short-term financial hitch like medical emergency or a decrease in income may not allow you to make mortgage payments on time. If your lender believes that you have a valid reason behind the missed payments, it may be agree to help you out with a special forbearance.

Depending on your financial circumstances, your lender may consent to a repayment in which you will temporarily owe lower payments; you may also get an interim suspension of payments. However, in order to secure this agreement, you will have to assure your lender that you will resolutely abide by the new repayment plan.

Mortgage Modification
Loan modification allows you to refinance your mortgage loan or even extend the term of your loan. The lender may settle for monthly mortgage payments that are within your financial means. However, to qualify for this alternative, you need to persuade your lender that your monetary problems are only temporary and will soon be resolved.

Refinance with a "Hard Money" Loan
Sometimes your lender may refuse to refinance your loan if it considers you as a high-risk borrower. In this case, you can contact a private lender to refinance with a hard money loan. Hard money loans generally have astronomical interest rates and fees, but it could allow you to buy the time you need to avoid foreclosure.

These foreclosure options should be easily available to anyone with a government-backed loan provider and built-in mortgage insurance, such as in an FHA loan.

When Foreclosure is Inevitable
If your situation makes foreclosure unavoidable, here are some tactics you can use to dampen the financial blow.

Pre-Foreclosure Sale
If you are absolutely convinced about your deteriorating finances, then the only option left for you is to sell your home for less than the amount required to pay the mortgage loan. You may be eligible for this alternative only if you default in your mortgage payments by a few months, or as specified by your lender. In addition, you may be required to sell your home in a specific amount of time. (For related reading, see Downsize Your Home To Downsize Expenses.)

If you can't bear to move out, you could sell your house to a friend or an investor who will then lease the home to you. The best way to do this is to sign a lease (or contract) that includes an "option to purchase" clause, which gives you the right to buy back your home once your finances have improved. However, this alternative does have significant risks, as sometimes the investor can borrow against your property or may even sell your home without your authorization.

Deed in Lieu of Foreclosure
Another way out is to willingly give your property to the lender, in which case the lender will pardon your debt. You will qualify for a deed in lieu of foreclosure only if you are unable to sell your home before foreclosure. The only advantage of this option is that you are rescued from a foreclosure as well as a bad credit record. (For more insight, see Consumer Credit Report: What's On It.)

Bankruptcy
Many people believe that filing for bankruptcy is a nice solution to foreclosure. In reality, all bankruptcy can do is delay the foreclosure process and buy you some time to catch up on your payments. Once the bankruptcy-instated suspension is revoked, the lender may ask for a full payment, which may require that you apply for a refinancing loan. However, the chances of getting a refinance loan are almost zero at this point, because the bankruptcy declaration will have left you with a negative credit score. (For related reading, see Bankruptcy Protection For Your Accounts.)

Conclusion
Avoiding foreclosure is easy if you stay away from situations that cause it. Excessive debt, adjustable-rate or exotic mortgages, a lack of emergency resources, lack of insurance and even buying costly homes will increase a homeowner's risk of foreclosure. Occasionally, financial setbacks can get in the way of making regular mortgage payments. When this happens, the only wise thing to do is to immediately inform your lender about this delay. In most cases, your lender will be willing to cooperate with you and help you catch up. Often, lenders are not interested in foreclosing your house except as a last resort because of the costs and time involved in the process.

As a homeowner, it is up to you to take all the necessary steps to save your house from foreclosure.

What I think is happening in Johnny's case may be that TMG has used the "castle" as collateral on various loans (now in question), eventually putting the "castle" at risk for foreclosure when loans were not repaid. TMG is claiming that they lent Johnny $5m to pay off defaulted loans and now Johnny "owes" them the $5m, threatening to foreclose on the property if not paid (not sure if a bank is foreclosing or if TMG is forcing a foreclosure). I think Johnny filed the lawsuit to stall the foreclosure and not pay TMG any more money. His team is probably trying to work out payment plans with a bank or re-secure the property from TMG, if they hold a lien on it.
He could also be avoiding a bankruptcy filing, but that may become necessary at some point.

Just my opinion...I could be interpreting things incorrectly.