Katzenberg, pictured here promoting "Prince of Egypt" last summer, is suing Disney for breach of employment.

April 27, 1999
Web posted at: 5:12 p.m. EDT (2112 GMT)

BEVERLY HILLS, California (CNN) -- Opening statements have begun in a breach of employment case that pits former Walt Disney Co. studio chairman Jeffrey Katzenberg against the entertainment conglomerate.

Bert Fields, Katzenberg's attorney, began opening statements Monday by stating this second phase of the case would be longer because, "not only has Disney held onto Jeffrey Katzenberg's money for three years, but they don't want to pay him any interest."

Fields said in the decade Katzenberg was with the company, he took the studio "from last to first," and created over 700 "products."

Katzenberg originally filed the lawsuit in 1996, after a falling out with Disney CEO Michael Eisner. Katzenberg claims he's entitled to $250 million, or 2 percent of profits in perpetuity, from all productions made during his time at the studio.

Opening statements had been postponed from last week. The delays were attributed to Fields' bout with laryngitis. The postponements, however, boosted the theory that Disney will try to settle rather than try the case in public.

In 1997, Disney conceded liability on the contract claim, and both parties agreed to have a retired judge determine damages in a private proceeding held at the law offices of the attorneys presenting the case.

Disney had objected to media presence during the proceedings, but last week an L.A. Superior Court judge ruled that the media could be present at the damage phase of the case, although no cameras were allowed in the courtroom.

Ten spaces were reserved for members of the media in the "mock trial" room where proceedings were held. More than 25 members of the media showed up to cover the case.

Katzenberg is currently one of the partners -- along with Steven Spielberg and David Geffen -- in DreamWorks SKG, which has released such blockbuster films as "Antz," "Saving Private Ryan" and the Michael J. Fox TV sitcom "Spin City."