Beruflich Dokumente
Kultur Dokumente
COUNTERCLAIMS
AGAINST PLAINTIFF, KYLIN
Defendant, Bennett Fidlow (Fidlow), by counsel, pursuant to Rule 13(b) of the
Federal Rules of Civil Procedure (the Rules), files the following counterclaims against
Plaintiff, Kylin Network (Beijing) Movie & Culture Media Co., Ltd., a Chinese
Corporation (Kylin).
sustained), and punitive damages in an amount not less than $3,350,000.00, plus
prejudgment interest on the principal sum awarded by the Jury from December 29, 2016
to the date of Judgment at the rate of six percent (6%) per year, plus attorneys fees
pursuant to 18.2-500 of the Virginia Code (1950), as amended, plus costs incurred
arising out of Kylins defamation per se, insulting words, and business conspiracy.
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Parties
standing with the Bars of both Virginia and California. Fidlow is an entertainment
lawyer. He has been practicing entertainment law for over 28 years, specializing in the
areas of film, television, home entertainment, Internet & new media, and live theatre.
Fidlow provides advice to both corporate and individual clients on legal and business
distribution and other exploitation. His clients include studios, broadcast & cable
networks, management & talent agencies, and A-list talent, as well as start-up companies,
low-budget indie productions, and individual executives, producers and artists. Sample
clients include Sony Pictures, Columbia Pictures, 20th Century Fox, Universal Pictures,
Franchise Pictures, Mandalay Entertainment, Warner Bros. TV, Fox Family, Disney
ATO Pictures, John Singleton, Vidal Sassoon, Tom Sizemore, Cloris Leachman, Peter
Fonda, writer and producer Daniel Pyne, book authors Sam Kashner, Nancy
Schoenberger, David Robbins, Dean King, NFL starter Evan Mathis (with the Eagles),
and many other high-profile companies and individuals. Fidlow also assisted in the
NBC/Vivendi Universal merger, the Sony acquisition of MGM, and in the sale of
Miramax by Disney. He is known for his work on such films as The Score, Hustle &
Flow, and Memento. Fidlow graduated from the Carnegie-Mellon University, Pittsburgh,
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PA, with a B.F.A., Theatre Production. He attended Columbia University in New York
City, where he earned his M.F.A. in Theatre Management. Fidlow obtained his Law
Degree (JD) from Hastings College of the Law in San Francisco, CA. He taught
Entertainment Law at the University of Richmond School of Law from 2006 2015. He
has published several articles and is a frequent guest speaker at universities and
entertainment industry seminars. He has served on the Board of Directors of the Central
Virginia Film Office, the Barksdale Theatre, the Childrens Museum of Richmond, the
Podium Foundation (inner-city high school literary program), and on the committees for
the Virginia Film Festival and the DC Independent Film Festival. Fidlow is highly
recognized by his peers, being the only Virginia Super Lawyer exclusively in the field
of Entertainment for the past eight (8) years. He is also in Whos Who Legal for
defamation undertaken and orchestrated by Kylin and its agents in 2016, Fidlow enjoyed
an untarnished reputation.
affiliates, agents, instrumentalities, alter egos, and stooges, some of whom masquerade as
thinly disguised separate and distinct corporations. Kylins alter egos, instrumentalities
and general agents and managers include James Pang a/k/a Hong Pang (Pang), Leo Shi
Young (Young), Kylin Pictures, Inc. and Kylin Pictures International, Inc.
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4. Kylin and Kylin Pictures share managing agents, officers and directors,
share offices in Los Angeles, California, commingle assets, and undertake a common
business. Pang and Young are the directors of Kylin and Kylin Pictures. Pang is
President of Kylin and CEO of Kylin Pictures. Young is Secretary and CFO of Kylin
Pictures and is Head of Kylins U.S. Operations and a general manager and consultant
employed by Kylin.
5. Pang holds a Masters Degree in Arts Education and has been involved in
the film production and financing industries for over twenty (20) years. Young holds an
MBA from Fordham University (2005), an MA from the School of the Art Institute of
Chicago (1985), and a BA from Tsinghua University of Beijing (1982). Prior to Kylin
and Kylin Pictures, Young was the president and CEO of a failed solar product
6. At all times material to this action, Young and Kylin Pictures were acting
as agents, alter egos and instrumentalities of Kylin within the scope of their employment
7. The United States District Court for the Eastern District of Virginia has
subject matter jurisdiction over this action pursuant to 28 U.S.C. 1332. The parties are
citizens of different States and the amount in controversy exceeds the sum or value of
Court for the Eastern District of Virginia because Kylin filed this action in this Court and
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transactional legal services to Bliss Media Ltd. (Bliss) in connection with obtaining the
rights to produce Birth of the Dragon (BOTD), a film regarding deceased actor and
10. At all times relevant to this action, Bliss was owned and operated by Wei
Han (Han).
11. Bliss agreed to collaborate with Kylin on the financing and production of
BOTD.
12. On June 20, 2014, Bliss and Kylin executed a partnership agreement
14. Fidlow did not represent Kylin in connection with the preparation or
Film Summit held in Los Angeles on November 2, 2015. He has been interviewed by
financing-hacksaw-ridge-with-kylin-pictures-chairman-james-hong-pang/.
Pang described Kylin as follows: Kylin is a general partner of a fund company in China.
They use the fund to invest in movies and the fund also has LPs, limited partners, from
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some banks, from some VIP clients. The company has four funds for different purposes.
One fund is to invest in both movies and TV series. Another fund is made for three
movies. Theres another fund that is for P&A only. The fourth is for acquisitions.
19. On or about June 25, 2014, Fidlow and Kylin executed a Legal Services
Agreement, pursuant to which Kylin engaged Fidlow to represent Kylin with respect to
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behalf of the Bliss-Kylin Partnership with QED Pictures, LLC (QED Pictures) for the
rights to BOTD.
(Block), represented to Fidlow, inter alia, that QED Pictures owned the rights to
BOTD.
with BOTD.
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30. Pang read the Financing Agreement before he signed the contract on
behalf of Kylin.
referred to as the Investor) agreed to finance production of BOTD in the total sum of
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Kylin Partnership fully protected Bliss and Kylins legal rights and interests.
38. Kylin paid $1 million to QED Pictures pursuant to and in reliance upon
39. Kylin claims that it also paid $1 million to Bliss, pursuant to the terms of
the Partnership Agreement, for the assistance Bliss provided in obtaining the rights to
BOTD.
40. No part of any money paid by Kylin to Bliss was ever paid or distributed
to Fidlow.
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41. Kylin claims that in February 2015, Kylin was advised by a former
principal of QED Pictures that QED Pictures never held any rights in BOTD, and the
actual rights holder was a separate entity called QED Holdings, LLC (QED Holdings).
42. On April 1, 2015, QED Holdings filed an action against Block, QED
States District Court for the Central District of California (the QED Holdings Action).
43. In its complaint in the QED Holdings Action, QED Holdings alleged as
follows:
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44. On April 2, 2015, after he learned about the QED Holdings Action and in
order to protect the Bliss-Kylin Partnerships interests in the BOTD project, Fidlow
arranged for the filing of UCC-1 Financing Statements with the California Secretary of
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Edward S. Labowitz, Esquire, notified Bliss that Kylin was terminating the Partnership
Agreement and the Financing Agreement based on alleged breaches by Bliss. In the
breach of contract against Bliss and Fidlow, and demanded return of the $1.0 million
46. In truth, Kylin objected to the UCC-1 Statements because Kylin had
secretly entered into a financing agreement with QED Holdings. Kylin intended to
breach the Partnership Agreement, and cut Bliss out of any further participation in the
BOTD project.
acknowledged receipt of the April 8 Correspondence, denied all allegations in the April 8
Correspondence, and informed Kylin that Bliss would not refund any amounts Kylin paid
48. By letter dated July 15, 2015 to Fidlow (the July 15 Correspondence),
demanded the following from Bliss and Fidlow: (a) that Bliss confirm in writing
termination of the Partnership Agreement and refrain from any involvement in BOTD;
(b) immediate return of the $1 million fee paid by Kylin to Bliss under the Partnership
Agreement; (c) that Bliss terminate, release, or withdraw the UCC-1 Statements; and (d)
that Fidlow return all fees Kylin paid to him for legal services in connection with BOTD.
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49. On August 18, 2015, Kylin reiterated its April 8 and July 15, 2015
demands that Fidlow terminate the UCC-1 Statements and informed Fidlow that Kylin
intended to commence proceedings against Fidlow and others if Fidlow did not
August 18, 2015 correspondence by, inter aliai, denying Kylins false allegations.
(the Kylin California Action), alleging claims of legal malpractice, breach of fiduciary
52. On May 16, 2016, ALPS Property and Casualty Insurance Company
(ALPS) filed an action against Fidlow, Kylin and others in the United States District
Court for the Eastern District of Virginia (the ALPS Action), seeking, inter alia, a
declaration that certain insurance policies issued by ALPS did not afford coverage to
53. On August 10, 2016, Pang and Young attended a mediation in Los
Angeles, California, between Kylin and Fidlow. Prior to the start of the mediation, a
process server served Pang with the complaint filed by ALPS in the ALPS Action. The
54. At a September 22, 2016 hearing in the Kylin California Action, the
presiding judge enforced the forum selection clause in the Legal Services Agreement and
ordered that the Kylin California Action be stayed until January 18, 2017 for plaintiff
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55. On September 28, 2016, Bliss and Kylin entered into a Confidential
Settlement Agreement and Mutual Release. Pang signed this agreement on behalf of
56. On October 25, 2016, ALPS moved for summary judgment in the ALPS
58. On November 28, 2016, ALPS requested the Clerk to enter default against
60. After the Clerk entered default as to Kylin in the ALPS Action, ALPS
61. On December 9, 2016, Kylin finally appeared in the ALPS case. Kylin
filed a motion to quash service of process, motion to dismiss for lack of personal
jurisdiction, and a motion to set aside the Clerks entry of default. Kylins motions were
subsequently denied by the Court, and default judgment was entered against Kylin on
62. On December 23, 2016, Kylin filed a complaint against Fidlow in the
United States District Court for the Eastern District of Virginia, Richmond Division.
63. Not content with resolving its differences with Fidlow in Court through
appropriate judicial processes, Kylin took its ill-will for Fidlow (and Bliss) to a different
level.
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64. In December 2016, Kylin began a very public smear campaign against
Fidlow, the purpose of which was to injure Fidlow or attempt to injure Fidlow in his
business as an attorney.
65. Pang published multiple false and defamatory statements to Young, which
he directed Young to republish to the press. Young, acting in concert with Pang, made
statements to Yiyu Yule (or Yiyu Entertainment) (Yiyu), a Chines media publisher,
with the intent that Yiyu would print and publish the malicious statements.
66. On December 29, 2016, Yiyu published an article with the title:
68. The Yiyu Article focuses on the Kylin California Action and the prior
dispute that had been settled confidentially between Kylin and Bliss.
69. Among other false and defamatory statements about Fidlow, the Yiyu
Article republishes the following false and defamatory statements by Kylin and its
to Kylin as part of a scam to defraud Kylin and get money out of Kylin and get Kylin
into a Trap;
b. that the alleged scam was undertaken to increase the position and
benefits of Bliss at the expense of Kylin, e.g., Fidlow seriously infringed upon the
interests of Kylin in order to seek benefits [for] Bliss and Kylin lost 2 million US
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dollars in vain, but Bliss made a profit of 1 million US dollars because Fidlow didnt do
due diligence on this fake company that would have revealed the truth neither before
nor after Kylin and Bliss negotiated the investment agreement, so Kylin was kept in the
c. that Bliss was the clear winner behind this absurdity [the filing of
d. that Kylin had reasons to suspect that Bliss and the attorney
Fidlow deliberately concealed the true information of the fake company in the past year
and intentionally set a scam to make Kylin suffer a loss of 2 million US dollars in vain,
improving the position/interest of Bliss in the entire transaction and help it to become the
so-called copyright owner, because this is related to the producer's credit in the future
movies, and certainly relates to the 1 million US dollars received by Wei Han
previously; and
f. that Kylin had been led into a trap that was designed carefully
70. The Yiyu Article and an English (Google) translation appears on the
Internet. The article may be accessed using a simple Google Search and translated into
CN&u=http://ciyuer.com/2016/12/qi-di-xi-yi-han-wei-dai-lu-qi-lin-xian-ru-de-yi-chang-
mei-guo-pian-ju/&prev=search.
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71. Since its publication, the Yiyu Article has been republished in numerous
media outlets.
72. Given that Kylin and Fidlow are involved in litigation, it is evident that
Kylins extra-judicial false and defamatory statements are intended to harm Fidlows
is intolerable.
statements, which are detailed verbatim above, about or concerning Fidlow without
75. By publishing the statements to Yiyu, Kylin knew or should have known
that its defamatory statements would be republished over and over by third-parties to
Fidlows detriment. Republication by Yiyu was the natural and probable consequence of
Kylins actions and was actually and/or presumptively authorized by Kylin. Kylin is
liable for the republication of the false and defamatory statements by Yiyu under the
doctrine announced in Weaver v. Home Beneficial Co., 199 Va. 196, 200, 98 S.E.2d 687
(1957) (where the words declared on are slanderous per se their repetition by others is
76. Kylins false statements constitute defamation per se. The statements
accuse and impute to Fidlow the commission of numerous crimes involving moral
turpitude and for which Fidlow may be punished and imprisoned, including, without
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limitation fraud, conspiracy, and aiding and abetting. The statements impute to Fidlow
an unfitness to perform the duties of an office or employment for profit, or the want of
integrity in the discharge of the duties of such office or employment. Kylins statements
77. Kylins false statements have permanently and irreparably harmed Fidlow
78. Kylin acted with actual malice and reckless disregard for the truth for the
following reasons:
litigation, during the pending litigation, and without there being a single finding of fact or
supporting evidence.
d. Kylin did not act in good faith because, in the total absence of
evidence, they could not have had an honest belief in the truth of their statements about
Fidlow.
statements to the press and enticed the press to republish, out of a desire to hurt Fidlow
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79. Kylin lacked reasonable grounds for any belief in the truth of its
damage and loss, including, but not limited to, pain and suffering, emotional distress and
trauma, insult, anguish, stress and anxiety, public ridicule, humiliation, embarrassment,
indignity, permanent damage and injury to his reputation, attorneys fees, costs, and other
out-of-pocket expenses in an amount to be determined by the Jury, but not less than
$1,000,000.00.
82. Kylins insulting words, in the context and under the circumstances in
which they were written and used, tend to violence and breach of the peace. Like any
reasonable person, Fidlow was humiliated, disgusted, angered and provoked to violence
83. Kylins false and slanderous words are fighting words, which are
84. As a direct result of Kylins insulting words, Fidlow suffered damage and
loss, including, but not limited to, pain and suffering, emotional distress and trauma,
insult, anguish, stress and anxiety, public ridicule, humiliation, embarrassment, indignity,
permanent damage and injury to reputation, attorneys fees, costs, and other out-of-
pocket expenses in an amount to be determined by the Jury, but not less than
$1,000,000.00.
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only if the Jury finds that Pang, Young and Kylin Pictures were not agents of Kylin
87. Beginning in December 2016 and continuing through the present, Kylin,
Pang, Young, and Kylin Pictures combined, associated, agreed or acted in concert
together (or attempted to do so) for the express purpose of injuring Fidlow in his business
and professional reputation through the publication and republication of false and
Kylin and its confederates orchestrated a scheme the unlawful purpose of which was to
defame Fidlow and destroy his reputation with colleagues and clients. Acting in concert,
Kylin utilized print media and the internet to publish, republish and spread the
with the express knowledge that they was injuring Fidlows professional reputation.
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90. As a direct result of Kylins misconduct, Fidlow suffered damage and loss,
including, but not limited to, injury to his business, business property, trade and
professional reputation, attorneys fees, court costs, and other damages in an amount to
91. In accordance with 18.2-500 of the Virginia Code, Fidlow seeks three-
fold the damages by him sustained in a sum to be determined by the Jury, but not less
than $3,000,000.00.
Fidlow alleges the foregoing based upon personal knowledge, public statements
of others, and records in his possession. Fidlow believes that substantial additional
evidentiary support, which is in the exclusive possession of Kylin and its agents and other
third-parties, will exist for the allegations and claims set forth above after a reasonable
Fidlow reserves his right to amend this Complaint upon discovery of additional
Kylin as follows:
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allowed by law;
E. Postjudgment interest at the rate of six percent (6%) per annum until paid;
BENNETT FIDLOW
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CERTIFICATE OF SERVICE
I hereby certify that on April 6, 2017, a copy of the foregoing was filed
electronically using the Courts CM/ECF System, which will send Notice to all counsel
of record, and a copy was served electronically in PDF upon counsel for the Plaintiff.
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