toronto’s C.O.R.E. Digital Pictures/C.O.R.E. Film Productions is asking a judge to throw out a multimillion-dollar lawsuit from a former partner who claims he was forced out of the company.
Derek Grime is seeking more than $4 million in damages and the fair value of his 18% stake in core, after being dismissed from the company in September 1997. Named as defendants in the case, filed in Ontario Court (General Division) last April, are core partners Ronald Estey, John Mariella, Kyle Menzies, Robert Munroe and actor William Shatner.
In its statement of defence the company claims the decision to terminate Grime followed a request by an important client that he be removed from a project.
‘He was dismissed due to his inability to manage and direct animation staff in a manner consistent with the quality and high standards set by the defendants,’ the statement of defence reads, ‘repeated complaints from the production management staff with regard to poor quality of work, poor adherence to schedules and lack of reliability; and lack of resourcefulness for an animation director in charge of one or more staff members on any given project.’
The defendants claim Grime misinterpreted Munroe’s comment during an annual review of the company in June 1996 that core was worth $20 million.
‘As a result of reading about the internet browser developer Netscape’s increase in value as a result of a public offering of shares,’ the defence states, ‘[Munroe] jokingly stated that if core went public it would be worth $20 million. [Grime] has selectively remembered this number but managed to forget the context.’
In his statement of claim, Grime alleges that he was kept in the dark about the business dealings and finances of core and that two-thirds of core’s revenues were not accounted for. The company denies the allegations, stating that Grime ‘never requested nor was he ever denied access to any financial information regarding affairs of the corporation.’
Grime also alleges that core removed pages from his personal sketchbook and has kept some of his belongings. The defendants deny removing any pages from Grime’s sketchbook and claim none of his property is on their premises. ‘If there is any… [Grime] is welcome to obtain his personal property at any time.’
core maintains that Grime accepted the terms of his dismissal, which included just over $60,000 for his 18% share of core, paid over three years. ‘[Grime] did not file a notice of objection as to the price of his shares within five days as required under the shareholders agreement and, therefore, he cannot now object to the valuation of the shares.’
core is being represented in the case by lawyer Howard Wolch of the Toronto firm Farano Green. Grime is now working at Command Post/Toy Box.