1:12pm PT by Ashley Cullins
New Johnny Depp Expenses Disclosed by Ex-Managers in Amended Lawsuit
Johnny Depp's former business managers were told by the court to reframe their arguments about the actor's spending, and in doing so they've added new details about his credit card expenses.
Depp charged more than $500,000 in rental fees for storage warehouses that hold his Hollywood collectibles, $17,000 in handbags and luggage at Prada and $7,000 for a Keeping Up With the Kardashians couch as a gift for his daughter, Lily-Rose, TMG claims.
These expenditures have come to light in The Management Group's second amended cross-complaint against the actor, the latest filing in a heated legal battle that began in January when Depp sued TMG for $25 million.
In the filing, the managers also say Depp's employees on his private island in the Bahamas racked up about a million dollars in charges related to the island's expenses — and they had to pay off a large balance after the actor stopped making payments on the card.
"After terminating TMG in mid-March 2016, Depp continued to make the minimum payments on the CNB Visa card for a time but then refused to pay anything further, forcing TMG to pay off the approximately $55,000 that was still owing on the CNB Visa card," writes attorney Michael Kump. "All charges on the CNB Visa card are undisputedly charges that were incurred on Depp’s behalf similar to, and/or including, the exemplar purchases discussed above. Depp knows all of these expenses were incurred by and/or on his behalf, but simply refuses to pay his debts."
The central dispute is whether Depp's currently dire financial state is the firm's doing or his own — and each side is asking the court for a ruling to that effect.
The actor is asking the court for declaration "(a) that any purported agreement between him and TMG is voidable, invalid, and unenforceable, (b) that he is entitled to disgorgement and restitution of all fees paid to TMG, and (c) that TMG is not entitled to a 'reasonable fee' for legal services as a result of their violations of the California Rules of Professional Conduct."
TMG has amended the complaint to make its request for declaratory relief a mirror image of Depp's. They're asking the court to declare "(a) that there exists a valid and enforceable agreement between TMG, on the one hand, and Depp and his loan out corporations, on the other hand, for professional services and payment of 5% of Depp’s gross revenues, (b) that neither Depp nor his corporations are entitled to disgorgement and/or restitution of any fees paid to TMG, and (c) that in the event there is finding that the California Rules of Professional Conduct apply here and there has been a violation thereof (which TMG denies), then TMG is entitled to a 'reasonable fee.'"
TMG also says it has learned through discovery the identities of the people to whom the actor claims his former business managers lent nearly $10 million of his money without his knowledge or permission. Their identities are redacted from the amended complaint — which TMG claims is to keep Depp from looking "ridiculous" because he's still close with two of them.
"Depp would attempt to have the world believe that TMG acted improperly at the same time he is still employing these two individuals in important, high-level positions even after they supposedly took well over $7 million in unauthorized distributions," writes Kump. "Of course, this is not the case and Depp knows it."
Kump on Thursday sent The Hollywood Reporter a statement about the amended cross-complaint and the information in it that's not publicly shared. "Depp’s exorbitant spending remains at the center of this case," he says. "The cross-complaint is being redacted because Depp is doing everything in his power to hide the identity of the friends and family to whom TMG supposedly distributed money without his authorization. Depp knows how ridiculous he will look when these false allegations are publicly disclosed."
Depp's attorney Adam Waldman sent THR a statement Thursday evening. "Today, the Mandels defied Judge Beaudet's previous order to strike their 'allegations' that are nothing more than another attempted character assassination of Mr. Depp," he says. "It is their latest desperate act, but it will not save the Mandels from the consequences that are coming in this fraud case."
The amended cross-complaint posted in full below.