The Law Office of Lynnette Ariathurai A Professional Corporation

IMAX sues Whitaker Center in contract dispute

Companies do not exist in a vacuum in business. They usually require doing business with other companies in order to operate. This is true for just about any industry in California. However, this means that, when a business contract dispute occurs, it can be a serious problem that could lead to litigation.

This is exactly where one case involving IMAX Corp. and the Whitaker Center for Science and the Arts has ended up. IMAX is suing the Whitaker Center in federal court over an alleged breach of contract regarding a lease agreement. The plaintiff claims that the Whitaker Center has defaulted on a minimum of $375,000 worth of rental payments for a movie projector system. The lawsuit was filed six months following the center announcing it was planning on renovating the venue's theater. Part of the plans included switching from the IMAX movie projection system to a digital system.

IMAX claims that the defendant had stopped making monthly rental payments in July. The plaintiff also accuses the Center of failing to make payments for maintenance in September. The lease calls for $75,000 per month in rental payments and an annual fee of $41,400 for maintenance of the IMAX movie projection system.

However, the defendant in this case, as with any business contract dispute in California, will have the opportunity to present a legal defense against the breach of contract allegations. Ultimately, the judge will decide which side will prevail in the case. The side with the best legal argument based upon facts and evidence will more than likely succeed. Therefore, proper preparation before presenting one's legal argument in court is of utmost importance.

Source:, "IMAX Corp. files federal breach of contract suit against Whitaker Center operator", Matt Miller, Feb. 24, 2015

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