Saxon's attorney, Jablon, said the money was not returned to investors because it "was spent on pre-production and production costs," including payments of "hundreds of thousands of dollars" to Walker, Ames and "Palmer Home" director Evans and that "any recoupment of investment would come in accordance with the contractual agreements with the investors." As for Minkow, he is "devoid of credibility," Jablon said.
Walker said fellow "Palmer Home" writer Tom Wiggin was paid $17,000. Ames said that although he received some money, it was not "hundreds of thousands" of dollars. Evans said he was paid part of what he was owed. Evans said by his estimation no more than $175,000 total was spent on the film's pre-production.
This month, two other Saxon investors, Memphis, Tenn., businessmen David Dunavant and Ronald Coleman, joined the Sonco lawsuit, saying they each lost $100,000 on movie deals. Dunavant, 53, said in a court filing that he told Saxon his money had been "earmarked for the treatment and education of my son who suffers from autism."
Said Dunavant in an interview: "I thought it would be useful and good to be involved with something that could provide benefits to the Palmer Home as well as make movies that are inspiring to families. I knew little about the movie business, being from Memphis. I did what I thought was a lot of due diligence."
Walker hopes the lawsuits against Saxon actually might have a beneficial effect, stirring fresh interest in "Miracle at Palmer Home" and bringing forth new backers.
Evans said he was hopeful if new money could be found that cameras could be rolling before the end of the year, with some "Palmer Home" scenes to be shot at the orphanage itself.
"I'm an eternal optimist," Walker said. "I think this will ultimately be a good thing for the movie and for Palmer Home."
john.horn@latimes.com
