PJ sues New Line Cinema
 

A curious report on Theonering.net

http://www.theonering.net/perl/newsview/8/1109690131

Hmm. Could it be the chances are rather slim of a PJ/New Line
Hobbit collaboration. :)

I wouldn't necessarily say that such a collaboration was out of the question, if it ever was a serious question. Lawsuits are often substitutes for contracts in Hollywood, and usually resolve themselves out of court to the satisfaction of all. If they both think they can make money on a film of The Hobbit, they will find a way to do so. That of course assumes that they can acquire the distribution rights. Last I knew, those still belonged to someone else.

Not to worry, the Mgm/New Line battle wont be sorted till longer after that law suit ends. I'm sure everyone will be happy familys again by then. lol :D