PERLUSS, P. J.
APPEALS from a judgment of the Superior Court of Los Angeles County No. EC061586, William D. Stewart, Judge. Reversed with directions.
Hunter Salcido & Toms, John L. Hunter; Law Office of Craig Barker and Craig Barker for Plaintiffs and Appellants Eliza Gilkyson, Tony Gilkyson and Nancy Gilkyson.
Sidley Austin, Rollin A. Ransom, David R. Carpenter and Sheri Porth Rockwell for Defendants and Appellants Disney Enterprises, Inc. and Wonderland Music Company, Inc.
PERLUSS, P. J.
A jury awarded Eliza Gilkyson, Tony Gilkyson and Nancy Gilkyson, the adult children and heirs of songwriter Terry Gilkyson, $350, 000 based on its finding that Disney Enterprises, Inc. and its music publishing subsidiary, Wonderland Music Company, Inc., (collectively Disney) had failed to pay contractually required royalties in connection with certain limited uses of “The Bare Necessities” and several other Gilkyson-composed songs in home entertainment releases of Walt Disney Productions's 1967 animated film The Jungle Book. Following the jury's verdict the trial court, ruling on the Gilkyson heirs' cause of action for declaratory relief, awarded an additional $699, 316.40 as damages for the period subsequent to the jury's verdict through the duration of the songs' copyrights.
On appeal Disney contends it was entitled as a matter of law to judgment in its favor because its agreements with Gilkyson require payment of royalties only in an amount equal to 50 percent of net sums received by Wonderland for exploitation of the mechanical rights to the material Gilkyson composed and no such sums were received for the home entertainment releases of The Jungle Book after July 2009. Alternatively, Disney argues the trial court erred in awarding contract-based damages as part of the declaratory relief cause of action.
In a cross-appeal the Gilkyson heirs argue the trial court erred in denying their request for prejudgment interest. They also conditionally appeal the trial court's denial of their motion for a new trial on damages alone and for additur, in which they had argued the amounts awarded by the jury and the trial court were inadequate and not supported by substantial evidence. However, explaining they are prepared to accept the judgment as entered (plus prejudgment interest) to put an end to the litigation, the Gilkyson heirs ask us to reverse the ruling on their new trial motion only if we reverse the damage award on their declaratory relief cause of action.
We agree with Disney that interpretation of its agreements with Gilkyson is subject to de novo review; Gilkyson's right to receive royalties from exploitation of the mechanical reproduction rights in “The Bare Necessities” and other songs he wrote for The Jungle Book was dependent on Wonderland receiving payment for such exploitation; and the express language of the contracts granted Disney sole discretion to decide how to exploit the material, including whether a fee should be charged for Disney's own use of the material in home entertainment releases. Accordingly, we reverse the judgment.
FACTUAL AND PROCEDURAL BACKGROUND
1. The Songwriting Agreements