This week, a California judge handed down a verdict ordering a film producer to pay his Italian film mogul boss $13 million to account for lost profits. According to Los Angeles Superior Court Judge Amy D. Hogue, the producer improperly produced films for his personal benefit using the mogul's resources, creating a conflict of interest.

The court battle began almost three years ago, in May of 2008, when the producer filed a lawsuit against the mogul alleging breach of contract and intentional interference with prospective economic advantage. In his suit, the producer alleged that the mogul convinced film directors to block the producer's participation in various movie projects such as Martin Scorsese's "Silence", ultimately depriving him of over $1 million in producing fees.

One month after the original court filing, the mogul filed a countersuit alleging that the producer had used the mogul's business resources to work on and accept payments for outside projects. The mogul said that although he had given the producer permission to work on such projects, the producer had abused the privilege, and therefore the mogul was entitled to substantial payments for lost profits.

Following a months-long court battle, Judge Hogue issued a ruling in favor of the mogul. She ordered the producer to pay damages in the sum of $13 million with 7 percent interest. "[The producer] was prohibited from taking personal advantage in the form of direct benefits, such as pecuniary gain," the judgment said, "as well as indirect benefits that enhance reputation, such as on-screen titles."

Source: Contra Costa Times, "Film producer ordered to pay ex-boss $13M judgment", 31 March 2011