Latest developments in the lawsuit related to the movie 'Playboys Don't Fear Fallen Children'

Actress Thu Trang's entertainment company is being sued for billions.

Photo: FBNV

After deliberation at the appeal trial, on the afternoon of March 27, the Ho Chi Minh City People's Court (HCMC People's Court) issued the final verdict in the investment cooperation contract dispute between Bao Trinh Trading and Service Company Limited (Bao Trinh Company, plaintiff) and Thu Trang General Entertainment Company Limited (Thu Trang Company, defendant).

At the appeal hearing, Bao Trinh Company presented its appeal request and requested the panel of judges to accept the entire lawsuit request. Both sides argued over the details of the amount of money divided in the contract.

In its opinion on the case, the panel of judges stated that the first instance court’s decision to force Thu Trang Company to return more than VND1.3 billion in capital contributions and profits from the film to its partners was well-founded. Therefore, the panel of judges upheld the first instance judgment and rejected the plaintiff’s appeal.

At the same time, the court also accepted Thu Trang Entertainment's request that after paying Bao Trinh more than 1.3 billion VND, the contract between the two parties would be terminated.

The movie "Dan choi khong so con roi" stars actor Tien Luat in the main role, Thu Trang takes on the role of producer.

Photo: FBNV

In October 2024, the Thu Duc City People's Court held a first-instance trial and ordered Thu Trang Company to return to Bao Trinh Company more than 1.3 billion VND in capital contributions and profits from the movie "Dan choi khong so con roi ". Disagreeing with the above decision, Bao Trinh Company later appealed the entire verdict.

According to the first instance judgment, on November 16, 2020, Bao Trinh Company signed a film production and business cooperation contract with Thu Trang Company to contribute capital to invest in the movie Dan choi khong so con roi. The estimated budget is 23 billion VND, Bao Trinh Company contributes 2.3 billion VND (equivalent to 10% of the budget). In case the revenue from exploiting the film is lower than the total investment capital, the profit for Bao Trinh Company is 10% of the revenue.

On July 24, 2022, Thu Trang Company released a film business cooperation contract accounting table with a revenue summary of more than 24.9 billion VND. The total cost for the film's production was more than 27.2 billion VND. The film's production suffered a loss of more than 2.28 billion VND.

According to Bao Trinh Company, according to the contract, this company must receive back its contributed capital after 10% of the loss is more than 2 billion VND (2.3 billion VND of contributed capital minus 10% of the loss of 2.28 billion VND) and the profit is equal to 10% of the revenue (10% x 24.9 billion VND). Total is more than 4.5 billion VND.

Bao Trinh Company only received 1.15 billion VND and has not received more than 3.4 billion VND in remaining capital contribution and revenue according to the agreement from Thu Trang Company.

On Thu Trang Company's side, this unit confirmed that the initial capital contribution ratio and the profit that the plaintiff received was 10% of the distribution profit (revenue after deducting costs). However, the defendant said that the plaintiff cited the clause: "In case the revenue from exploiting the film is lower than the total investment capital of the project, the profit sharing for Bao Trinh Company is 10% of the revenue" which is not in accordance with the nature of the contract.

In order for the producer and investor to share the risk, in the worst case scenario where the film's revenue is lower than the total investment capital of 23 billion VND, the profit sharing for Bao Trinh Company is 10% of the revenue without any capital recovery.

Thu Trang Company proposes the following interpretation: Net revenue of more than 24.9 billion VND minus production costs of 23 billion VND results in a profit of more than 1.82 billion VND. Bao Trinh Company receives 10% of 1.82 billion VND, which is 182 million VND.

Thu Trang Company agreed to return to Bao Trinh Company 2.3 billion VND in capital contribution and 182 million VND in profit; minus the 1.15 billion VND that Thu Trang Company had previously paid, the remaining amount to be paid is more than 1.3 billion VND.

Source: https://thanhnien.vn/dien-bien-moi-nhat-vu-cong-ty-cua-dien-vien-thu-trang-bi-kien-185250327193107736.htm