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INVESTING IN HOLLYWOOD INTEREST ON LATE PAYMENTS Remove any incentive for a producer or distributor to hold onto your money. Courts may not award pre-judgment interest to a prevailing party unless there is a provision in the contract providing for such interest. Thus, if you become embroiled in a dispute with a distributor who is unlawfully holding onto $100,000 owed you, and after four years of litigation you win the case, the court may award you $100,000 in damages without interest. During those four years the distributor could invest your money and reap the profits. Under such circumstances the distributor has an incentive to delay payment. back |