Tera Patrick's production company Teravision filed suit in April against Playboy Enterprises Inc. in Los Angeles County Superior Court, claiming that Playboy and has failed to account for and pay royalties from Patrickâ€™s website clubtera.com.
Playboy purchased the Teravision contract and all of its obligations from Club Jenna last year. A simultaneous arbitration is underway between Teravision and Club Jenna over the same issues. Teravision CEO Evan Seinfeld told AVN that the dispute stems from Club Jenna assigning the ClubTera.com contract to Playboy without prior approval.
"Our position is, and has been all along, that we are not being granted unfettered access to all financial accounts related to the website, as called for in the agreement, and accordingly, Teravision is not being accurately compensated," said attorney David Beitchman, who is representing Patrick and Teravision in the suit.
Teravision contends that they were forced to file two separate actions because Club Jenna is party to an arbitration clause in the contract, and has refused to submit to the jurisdiction of the State Court. Playboy refused to submit to the pending arbitration, forcing Teravision to file in California Court.
"Without question both matters should be heard together, and we are confident we will prevail in either forum, but because of Playboy and Club Jenna's refusal to cooperate, we are forced to waste time and resources until we can obtain a court order consolidating the actions," said Beitchman.
Club Jenna and Playboy declined to comment on the litigation at press time.