COCHISE COUNTY PICTURES LLC IN COURT WITH CO-PRODUCER OVER UNPAID LOAN FOR MOVIE EXPENSES
filmed in Cochise County, "A Horse Story" features voice of Kix Brooks as "Champion" and Danny Trejo as "Moonlight"
default on short term loan at 10% per annum triggers interest rate change to over 200%
TUCSON - An unpaid loan for production expenses for a movie filmed at several locations in Cochise County in 2013 is the subject of a lawsuit currently working its way through Pima County Superior Court.
Co-producer Aaron J. Araza and wife Rebekah Bedzyk Araza sued Cochise County Pictures LLC and producer-director John Richard Kish Rogers, known professionally as JJ Rogers, for repayment of a loan plus interest.
“A Horse Story” is a family-oriented feature-length movie about a horse named Champion who is able to talk to a young girl.
Country singer Kix Brooks (of Brooks & Dunn fame) provides the voice of Champion, while movie tough guy Danny Trejo voices a horse named Moonlight. The actors are not involved in the lawsuit.
According to court documents, in May 2014 the Arazas loaned Rogers and the production company $21,000 which was to be paid in full with interest by January 30, 2015. An email between Aaron and Rogers at the time indicates the company “had funding issues” and needed additional money “to keep the project going and most importantly pay our amazing staff.”
OFFSET CLAIMED, DEAL RENEGOTIATED - BUT STILL NO PAYMENT
When the complaint was filed September 15, 2015, the Arazas claimed the defendants owed more than $40,000 after defaulting on the loan. In response, Rogers filed a counterclaim stating he and Aaron Araza had a verbal agreement allowing Araza to live in Rogers’ Tucson home rent free in exchange for a credit against the note of $9000.
Rogers also claimed he signed the promissory note in his role as the managing member of the corporation and therefore was not personally liable for the debt. The note stated an interest rate of 10% per annum (year) but in the event that payment was not on time, the interest rate would change to 10% per month.
The case appeared to have been resolved in July of this year after Tucson attorney Richard Bock, a court-ordered arbitrator, heard testimony and reviewed documents provided by the parties. Bock informed judge Sarah Simmons of his decision in favor of the plaintiffs and that “the parties have agreed” on a payment plan under which the Arazas would receive $30,000 by the end of 2017.
The first payment under that plan was $3000 due by September 1. But on September 20 Rogers filed an appeal of the arbitrator’s decision and requested the matter be set for trial.
In his appeal, Rogers claims Arizona law “precludes a member or manager from being held personally liable to third parties for the debt of the company even if they participated in the transaction that created the debt.” (Court documents show the first sentence of the promissory note is worded “for value received, we John Richard Kish Rogers and Cochise County Pictures, LLC… promise to pay…”)
Rogers also argues the company was not properly served with the complaint back in 2015 so none of the corporation’s other members were involved in the arbitration proceedings.
INABILITY TO PAY RELATED TO MOVIE DISTRIBUTOR BANKRUPTCY
In a phone interview Friday, Rogers confirmed the Araza funds were used for post-production expenses to help complete the film. He also said “Aaron deserves to be paid and will be paid” once Cochise County Pictures is able to do so.
Rogers explained that the company’s current inability to pay off the promissory note is because Alchemy, a large movie distributor handling the release of “A Horse Story,” filed for bankruptcy earlier this year which resulted in delays getting dvds into stores and to online sellers.
The parties have until December 8 to complete preparations for a trial planned for early 2017. Both parties have represented themselves throughout the case, but earlier this month judge Simmons advised Rogers that Arizona law requires the corporation to be represented by someone licensed to practice law in Arizona.
Attempts to reach Araza for comment were not successful.
Although Alchemy’s bankruptcy is preventing a nationwide DVD release, the movie can be watched online through Amazon Video. There are also a few DVDs - new and used- available for sale at Amazon.com.
The movie’s teaser trailer can be viewed at https://www.youtube.com/watch?v=IZ40fQnbCoI
Contact reporter Terri Jo Neff at 520-508-3660 and cjw_media@yahoo.com
