LIAISON FIRMS SUE FILM-PERMIT AGENCY COMPANIES CLAIM THEIR BUSINESS THREATENED.

Byline: Troy Anderson Staff Writer

Five companies that obtain film permits for production companies have filed suit against the Entertainment Industry Development Corp., alleging the agency defamed and discriminated against them in an effort to put them out of business.

Los Angeles attorney Michael Morin, who represents the companies, said the EIDC has one set of rules for production companies that seek permits directly from the EIDC and another set of rules for those that use permit-services companies.

``This has been going on for a long time, but has gotten progressively worse over the last six months,'' Morin said.

EIDC President Steve MacDonald denied the accusations, saying the quasi-public agency is not trying to put the companies out of business.

``We have no incentive at all to make life difficult for anybody that comes to us for a permit,'' MacDonald said. ``We get paid whether (a) permit-services (company) comes to us directly or whether a production company comes to us directly.

``I think their allegations stem from their lack of appreciation of our contract with the city and county. We have built into our mission not only to help the entertainment industry flourish here, but to do it in a way that doesn't impact neighborhoods adversely.''

The companies that filed the lawsuits include Woodland Hills-based Film Permits Unlimited; Westlake Village-based Walker Location Services; Los Angeles-based Film This Production Service; Hollywood-based Pacific Production Services; and West Covina-based Beautiful Day Permits.

The companies obtain about 65 percent of the film permits issued in Los Angeles County.

The companies are asking a judge to order city and county officials to issue permits directly to the companies, bypassing the EIDC.

The EIDC was created in 1995 to coordinate filming, issue permits and help address complaints from neighborhoods and merchants regarding filming.

In the lawsuit, the EIDC is accused of treating the companies in ``an increasingly hostile and unfair manner'' and imposing requirements seemingly designed to force them out of business.

For example, the service companies claim the EIDC does not allow them to use credit cards to make permit payments, but allows use of credit cards by production companies that deal directly with the EIDC. Also, they say the EIDC will not fax permits to them and issues permits only at the end of the working day, so it is late when clients learn that they have a permit to film the next day.

The companies say they have futilely asked city personnel to issue permits to them directly.

MacDonald was named president of the EIDC after a scandal involving its former president, Cody Cluff, who was ordered to pay $80,000 in restitution and placed on probation for three years for embezzling public funds.

Cluff misspent about $80,000 in EIDC funds for film-industry promotion - which was taxpayer money from county government and local cities - on strip clubs, donations to his son's high school football team and wining and dining his girlfriend, who headed the film office in Pittsburgh, prosecutors said.

Troy Anderson, [phone]

troy.anderson(at)dailynews.com