Resort developer sues California firms for $1 billion breach of contract

Resorts World Genting is a sprawling resort complex of hotels, theme parks, casinos and shopping malls perched atop Mount Ulu Kali in Malaysia, not far from that nation’s capital and largest city, Kuala Lumpur. The resort’s developer recently filed a lawsuit in California for breach of contract against Walt Disney Co. and Fox Entertainment Group (both companies have headquarters in the Los Angeles area).

According to news reports, developer Genting Malaysia seeks at least $1 billion in damages from the California entertainment giants.

The lawsuit filed in Central California District Court says damages were inflicted by Fox’s withdrawal from a 2013 agreement to license intellectual property for a Fox World theme park at Resort World Genting. The theme park would have been Fox Entertainment’s first foray in the lucrative theme park industry.

Genting Malaysia says in its complain that Fox had no grounds for issuing its “notice of default” to end the agreement. The company also claims 21st Century Fox and Disney’s contract interference resulted in Twentieth Century Fox Licensing and Merchandising (part of Fox Entertainment) to breach the contract.

According to a news report, when Disney announced late last year its acquisition of 21st Century Fox, some observers wondered how its policy against gambling would be reconciled with Genting’s resort, which includes a casino.

The Malaysian company says it has already put nearly $180 million into the Fox project, which had been slated to open in the first half of next year.

If you and your firm are in a business contract disagreement, contact a San Diego law firm experienced in resolution of breach disputes.