What would Gandalf do?

The Associated Press: Tolkien estate sues New Line Cinema

Wow. That Hobbit movie is hardly a sure thing, considering New Line’s escalating troubles.

The estate of “Lord of the Rings” creator J.R.R. Tolkien is suing the film studio that released the trilogy based on his books, claiming the company failed to pay a cut of gross profits for the blockbuster films.

The writer’s estate, a British charity dubbed The Tolkien Trust, and original “Lord of the Rings” publisher HarperCollins filed the lawsuit against New Line Cinema on Monday in Los Angeles Superior Court.

The lawsuit claims New Line was required to pay 7.5 percent of gross receipts from the films to Tolkien’s estate and the other plaintiffs. A call to a spokesman for New Line, a unit of Time Warner Inc., was not immediately returned.

The plaintiffs seek more than $150 million in compensatory damages, unspecified punitive damages and a court order giving the Tolkien estate the right to terminate any rights New Line may have to make films based on other works by the author, including “The Hobbit.”

Such an order would scuttle plans New Line has in the works to make a two-film prequel based on “The Hobbit.”