LOS ANGELES (AP) | Walt Disney Co. chairman Michael Eisner testified he refused to settle a dispute with former film boss Jeffrey Katzenberg over a bonus because he was angry at Katzenberg for disclosing company business to the media.

Eisner's testimony Tuesday revealed more details of their infamous Hollywood feud. Katzenberg has sued Disney, claiming the company owes him at least $250 million in bonuses for work he did at the company before he quit in 1994.

Eisner said he believed Katzenberg had a "dark side" and acknowledged he may have told an author, "I hate the little midget."

In an exchange extraordinary in the secretive entertainment industry, Eisner was confronted by Katzenberg's attorney, Bert Fields, on statements Eisner made to Tony Schwartz, collaborator of Eisner's autobiography "Work in Progress." Asked if it was true that Eisner told Schwartz, "I think I hate the little midget," referring to the 5-foot-4 Katzenberg, Eisner -- one of the most powerful men in Hollywood -- warned Fields to back off.

"I think you're getting into an area that I will say is ill-advised," Eisner told the lawyer. Eisner didn't say why he felt it was wrong to pursue such questions. But he did acknowledge he may have made the statement in anger after the bitter breakup of the corporate partners. Katzenberg left Disney after Eisner refused to promote him to president.

Eisner also acknowledged that he was so mad at Katzenberg he was unwilling to reach a settlement in the former executive's claims to lucrative bonuses -- a percentage of all the income Disney films and merchandise will ever make.

Eisner said he became upset after receiving a fax, inadvertently sent to him, suggesting Katzenberg had leaked details of their financial negotiations to the media. Katzenberg was a hard-working film executive, Eisner said, but his practice of going to the media "just got really annoying."

The Disney chairman frequently said he couldn't remember events, but said he was certain Katzenberg knew and agreed he wouldn't get an incentive bonus if he failed to serve out the entire contract.

After early talks, Disney secretly paid Katzenberg $77 million in a partial settlement, the Hollywood Reporter said Tuesday.
salon.com | May 5, 1999

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