Two Hollywood producers who owned a Malibu residence that burned down in the Palisades Fire have filed a cross-complaint against a judgment creditor asking a judge to find that they and not the creditor are entitled to nearly $230,000 in benefits being held in escrow by the California FAIR Plan Association
The FAIR Plan was established so all California property owners have access to basic fire insurance when access to coverage in the traditional market is not available. The home on Rambla Pacifico road that was destroyed in the Jan. 7 blaze belonged to Marina Grasic and her husband, Jan Korbelin, producers who co-founded Cargo Entertainment in 2011 with Mark Lindsay to focus on independent films.
The judgment creditor, Jonathan Paley, alleges that Grasic and Korbelin fraudulently transferred the property and other assets to avoid satisfying Paley’s judgment against the pair in a separate lawsuit. The FAIR Plan paid Grasic and Korbelin for damage to the property, but $228,515 for personal property losses and fair rental value remain at issue because both sides have made claims for the money.
In March, the FAIR Plan filed its own legal action asking a judge to order the parties to settle the dispute between themselves and restrain both sides from filing any actions against the FAIR Plan to recover the benefits.
In the Grasic-Korbelin cross-complaint filed Oct. 21, the pair state that they and Paley have been in a “protracted legal battle” related to a defunct production company, Curious Pictures and the production of the animated series “Goldie & Bear” dating back to 2012.
Paley was once an employee of Curious, but was sued by Curious when it was discovered Paley had diverted a $300,000 payment intended for Curious to his own entity, according to the cross-complaint, which further alleges that Paley responded by contending Curious owed him salary and compensation for his claimed equity in Curious Pictures.
Curious, which was already completely insolvent prior to any dispute with Paley due to the cancellation of its largest project and the general downturn of the commercial and animation industry, could not continue the legal fight and entered into a settlement with Paley for $1 million, the cross-complaint further states.
“Paley took advantage of Korbelin’s and Grasic’s misfortune and destroyed house to exert enormous pressure by preventing them from utilizing insurance proceeds to buy basic necessities such as clothing and to secure alternative lodging…,” according to the cross-complaint, which alleges civil extortion, intentional interference with contractual relations and intentional infliction of emotional distress.
Along with the declaration of entitlement to the insurance proceeds from the FAIR Plan, Korbelin and Grasic seek unspecified compensatory and punitive damages from Paley.
In its underlying lawsuit, the FAIR Plan states that it is seeking a judge’s intervention because between the Korbelin and Grasic claim and that of Paley it “cannot determine which of the competing claimants is entitled to receive the policy benefits.”
The FAIR Plan also seeks attorneys’ fees.