Irish film producers deny Vikings spin-off claims in High Court

Two Irish film producers deny that plans to make a sequel to the popular Vikings TV series breaches any undertakings they had previously given to the High Court.

The court heard on Thursday that German film company, Berlin-based W2 Filmproduktion Vertriebs GmbH, may seek an injunction against producers Morgan O'Sullivan and James Flynn over proposals to make 'Vikings Valhalla.”

The injunction would be brought on as part of W2's ongoing action where it is alleged the producers have allegedly diverted some €40m funds out of a film production firm called Octagon Films Ltd, a company they are all shareholders in.

Both men deny the allegations that they allegedly diverted the funds to either themselves personally or corporate entities controlled by them.

Today the producers, represented by Bernard Dunleavy SC and Eamon Marray Bl, told Ms Justice Teresa Pilkington that they did not accept the suggestion made by W2 that the proposed spin-off series breached undertakings previously given by them to the court.

The producers took undertakings very seriously, and they would be in correspondence about the matter with lawyers for W2, Mr Dunleavy said.

Mr Dunleavy was responding to W2's claims that in breach of undertakings previously given to the court, that the funds generated by 'Vikings Valhalla' which the German firm alleges should go to Octagon will be diverted to the defendants and may result in W2 seeking injunction reliefs.

W2 argues that fees generated from the original Vikings series are a central issue in the action.

W2 claims the producers are not entitled to a profit, without Octoagon's permission, from productions including the 'Vikings' TV series, much of which was filmed in Ireland.

The action, which first came before the court in 2016, returned before the court this week when the producer's lawyers sought additional time to make the discovery of documents it has in its possession, which W2 says are important to its claim.

Discovery had been ordered last June but, could not be completed by the defendants due to large volume of materials involved. They wanted the period of time in which they must make discovery extended to December 2020.

W2, represented by Paul Gardiner SC and Edward Farrelly SC had opposed the application.

Ms Justice Pilkington ruled the defendants should make every effort to discover what they can by January 17 next, and the matter would be reviewed by the court later that month.

In its action W2 is suing the producers on behalf of Octagon by way of a derivative action which is a claim brought by a shareholder on behalf of a corporation against another party- which in this case is Mr Flynn and Mr O'Sullivan who are directors of Octagon.

W2, which invests in international film productions, says it acquired 49% of Octoagon's shares in 2002.

W2 seeks an order for damages for alleged breach of duty, alleged fraud, and alleged conspiracy against the producers.

The producers deny diverting any fees, income or opportunities that were due to Octagon to themselves or to any corporate entities controlled by them.

Mr O'Sullivan of Ardmore Park, Bray, Co Wicklow and Mr Flynn of Ballyedmonduff Road, Stepaside, Dublin, who between them own 51% of Octagon's shares deny they traded as Octagon or used the company's name and reputation.

They claim Octagon was set up as a company devoted to film development and production activity and is a separate entity to their work for hire film production services they are associated with.

Octagon, they claim, benefited from the defendant's association with projects which were not part of Octagon's business.