Texas Woman Wins Big “Fifty Shades of Grey” Royalties Lawsuit

It seems like one of the most popular topics of conversation these days is the movie version of the erotic novel sensation “Fifty Shades of Grey.” (Spoiler alert: It’s really bad. I went hoping to make fun of it and have a few laughs, and it was too awful to even laugh at.) But one woman may be laughing soon–laughing all the way to the bank, that is. An Arlington, Texas woman named Jennifer Lynn Pedroza just won a major “Fifty Shades” related lawsuit.

Pedroza used to work with a business partner named Amanda Hayward who’s based out of Australia. They worked together at “The Writers Coffee Shop,” which publishes e-books. “Fifty Shades” was actually first published as an e-book and a print-on-demand book by The Writers Coffee Shop after it gained fame as an online fan fiction written by British author E.L. James. The rights were eventually sold to Random House.

Pedroza, one of the original founders of The Writers Coffee Shop, claims that Hayward took steps to restructure their partnership for supposed “tax reasons.” In doing so, Pedroza was no longer in a position to receive the royalties from the books and resulting movie(s). Pedroza claims that Hayward tricked her into signing the paperwork. While Pedroza did receive some money when the rights to the book were first sold to Random House, she didn’t receive any royalties that come from the book and its subsequent endeavors.

Given that the book has sold more than 100 million copies worldwide and the movie had an $81.7 million opening weekend, that’s the potential for a lot of royalties.

The suit claims:

Hayward signed a contract on behalf of the Coffee Shop with Random House for the rights to the ‘Fifty Shades’ trilogy in exchange for millions in advances and future royalties but, because of her chicanery, all payments flowed to her and not the partnership.

Pedroza originally filed the lawsuit in a Tarrant County court in Texas, and after a nine-day trial and three days of deliberations, the jury found in her favor. They made their determination on Thursday.

Pedroza appears to have asked for one million dollars in the court documents, but it will be up to a judge to decide how much she’ll actually be awarded. It’s going to be in the hands of State District Judge Susan McCoy. She’ll make that determination based on financial records of the sales. Although those records aren’t open to the public, it was estimated that her share could have been anywhere from $10-20 million. Mike Farris, Pedroza’s attorney, said that it will be in the seven figures.

Originally, there was a third woman involved in the lawsuit named Christa Beebe, who also partnered with Pedroza and Hayward. She, however, settled her lawsuit in December under confidential terms.

While it’s yet to be determined how much Pedroza will end up profiting, it’s safe to say that she came out on top. While no one knew that “50 Shades” would be such a success, the people who made it happen obviously all deserve a piece of the pie.

Anneliese Mahoney

Anneliese Mahoney is Managing Editor at Law Street and a Connecticut transplant to Washington D.C. She has a Bachelor’s degree in International Affairs from the George Washington University, and a passion for law, politics, and social issues. Contact Anneliese at amahoney@LawStreetMedia.com.