What you can Learn from Disney.

The mouse is not infallible. True, they have a magnificent track record filled with success, but I remember the time shortly before the Little Mermaid when Disney looked as if they were becoming irrelevant to contemporary entertainment.

In more recent history, Disney has become the proverbial 600-pound gorilla, a giant player producing and buying top-notch brands and franchises. Marvel, Star Wars, and even the Muppets are under Disney’s giant tent. But even giants stumble, either from carelessness or hubris.

Before the pandemic, Disney entered a contract with Scarlett Johansson for her film “Black Widow” that, among other things, guaranteed an exclusive theatrical release and her salary was based on the box-office performance of the film. There are many excellent news articles on this so I won’t go into the details here nor do I know how this matter will end. However, at the time of the writing of this blog, Ms. Johansson’s lawsuit details how Disney and Marvel breached that contract by unilaterally releasing the film via their streaming platform. Regardless of how anyone views the legal action, anyone can see that her income was probably substantially affected by that decision.

While Ms. Johansson is a popular public figure and sympathetic to many, I would be remiss if I didn’t mention she’s faced some blowback from appearing in Ghost in the Shell (there are racial issues I will let you google) and defending Woody Allen. However, regardless of that or her financial and professional success, she has the right to use our legal system to address this “disagreement”.

Accordingly, Ms. Johansson filed a law suit the same way anyone can when faced with a breach of contract. It is often best to let the legal process do its work rather than engage in a trial in the media. Often, that kind of activity can backfire. Unfortunately, a Disney spokesperson stated that Ms. Johansson had “callous disregard for the horrific and prolonged global effects of the Covid-19 pandemic.”

You can judge for yourself how you feel about that statement, but in my opinion, when some parties feel threatened they have no compunction about making ridiculous, callous, and unfounded allegations about a woman who entered into a contract in good faith and was only seeking to defend her rights in a court of law. Sometimes giant corporations who fear a loss in court will seek to have the fight in the court of public opinion.

In my opinion, Disney made two big mistakes. First, their unilateral change of the conditions in the contract in question leading to the lawsuit could have been handled better. Many options existed including, but not limited to, a renegotiation of certain terms including a larger up-front payment to the talent. Second, they made false and unpleasant accusations about the talent’s behavior in what anyone could see was a false and incredible narrative. So, what can we learn?

Get a lawyer and/or trusted advisor and make sure that, whatever deal you make, you get it all in writing. That way, even if the other party tries to change the terms, you can bring a lawsuit and have proof of the terms of the actual deal. Even if the party you contract with has a great reputation, the best thing you can do to protect yourself is to have good legal representation before, during, and after your business activities. Also, be careful of the statements you make in public. They can negatively affect your brand.