Disney Seeks Confidential Arbitration For Settling Scarlett Johansson's 'Black Widow' Salary Lawsuit

The legal melodrama between Walt Disney Co DIS and its “Black Widow” star Scarlett Johansson has taken a new turn as the studio seeks to relocate the actress’ litigation from the public gaze in a courtroom to a confidential arbitration setting.

What Happened: Johansson filed a lawsuit last month in Los Angeles Superior Court claiming Disney’s decision to release “Black Widow” in a simultaneous streaming premiere with its theatrical run represented a breach of her contract, which she said included a guarantee of an exclusive theatrical release.

Johansson added that her salary was predicated on the film’s box office performance, which she stated was diluted by having the film on the Disney+ streaming service while it was also in theaters.

Disney initially responded to the lawsuit by claiming it had no merit and that the actress displayed “callous disregard for the horrific and prolonged global effects of the COVID-19 pandemic.” The company also leaked that Johansson earned $20 million on the film, her ninth and final performance as the Marvel Entertainment superhero.

However, Disney has found itself with few vocal allies in this fight. On Friday, Gabrielle Carteris, president of the Screen Actors Guild, stated her organization was “deeply concerned by the gendered tone of Disney’s criticism of Ms. Johansson. Women are not ‘callous’ when they stand up and fight for fair pay – they are leaders and champions for economic justice.”

Carteris’ rebuke followed earlier complaints from the National Association of Theater Owners that the dual release of “Black Widow” significantly weakened its box office viability, while Bryan Lourd, co-chairman of the Creative Artists Agency, came to his client Johansson’s defense in a rare public statement that accused Disney of trying to “weaponize her success as an artist and businesswoman, as if that were something she should be ashamed of.”

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What Happened Next: Disney is attempting to move the lawsuit out of the spotlight by shifting negotiations to arbitration. Dan Petrocelli, a partner at O’Melveny & Myers LLP, is representing Disney in this lawsuit and he told the Wall Street Journal that the terms of Johansson’s contract include a provision for a confidential arbitration proceeding to resolve any dispute.

Petrocelli added that Disney and Johansson’s legal team were in discussions before the lawsuit was filed, but he claimed the “demands they made were unreasonable,” although he declined to identify those demands. In a separate interview with Variety, he continued Disney's efforts to denigrate Johansson's lawsuit.

"It is obvious that this is a highly orchestrated PR campaign to achieve an outcome that is not obtainable in the lawsuit," Petrocelli said. "No amount of public pressure can change or obscure the explicit contractual commitments. The written contract is clear as a bell."

John Berlinski, Johansson’s lawyer, responded to Petrocelli’s statement by noting, “If Disney genuinely believed what its lawyers now claim, it would welcome having the dispute decided in open court, instead of angling to hide its misconduct from the public in a confidential arbitration.”

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Photo: Scarlett Johansson in "Black Widow," photo courtesy of Disney.