‘Paranormal Activity’ Director Oren Peli Wins Arbitration Claim Over Failed ‘Eliza Graves’ Deal

An arbitrator has ruled in favor of Oren Peli, the director of “Paranormal Activity,” in his claim that Sobini Films and Millennium Films owes him a $500,000 kill fee after negotiations fell through for him to direct a movie called “Eliza Graves.”

The arbitrator, Steven J. Stone, also awarded Peli interest, attorney’s fees and costs. Peli’s attorney, Jeremiah Reynolds of Kinsella, Weitzman, Iser, Kump & Aldisert, plans to file a claim for confirmation on Tuesday.

According to the arbitration decision, Peli became “attached” to direct the movie in 2011 via a contract that included a “kill fee.” Negotiations between Millennium and Peli broke down in August 2012 over the selection of a line producer, according to the ruling. “Eliza Graves” was eventually made and released in October 2014 under the title “Stonehearst Asylum.”

Stone rejected Millennium’s argument that Peli failed to negotiate the terms of the directing agreement in good faith.

An attorney for Millennium, Charles Coate, did not immediately return a request for comment.

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