Goldhil sues Tango over ended contract

Distributor, supplier had 26-month deal

Eliza Gallo -- Video Business, 7/7/2005

JULY 7 | Camarillo, Calif.-based video distributor Goldhil Home Media International has filed suit against Santa Monica, Calif.-based Tango Entertainment, alleging that Tango improperly terminated a contract between the two companies in mid-June.

In the suit filed July 1 in California Superior Court in Santa Monica, Goldhil claims Tango senior VP finance Victor Elizalde prematurely ended a 26-month contract under which Goldhil was Tango's exclusive U.S. video distributor.

The suit also alleges that Tango accepted a $100,000 advance from Goldhil and then ordered Goldhil to stop taking orders for Tango product.

The suit says Tango made frequent "unreasonable" demands of an unspecified nature. Goldhil is seeking unspecified damages, restitution, legal fees and a jury trial.

"Tango has terminated its business relationship with Goldhil," a Tango spokesman said. "As often happens, a legal action has been filed, and Tango will vigorously defend the action and will also pursue claims that it has against Goldhil. Tango is confident that all of Goldhil's claims will be proven to be groundless and that Tango will prevail in its action against Goldhil."

Preliminary legal proceedings are set for Oct. 11 in Santa Monica, Calif.

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