Or no Hobbits at all...

[Sauron the White]

This should be a cut and dry matter of what the contract language says the filmmakers are obligated to. Up until now, they only information I ever saw said that JRRT sold the rights for a specified cash payment. No mention of royalties or profit sharing. If the contract does include profit sharing or royalties then New Line clearly owes money to the Estate. And in that case they deserve it.

The one thing that really disturbs me is the mention of this in the story

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

AHHHH!!!!! So thats is then. The Estate does not want two more movies taking away all the attention that they themselves want for the books. The attention they tried to grab by agreeing to publish the CHILDREN OF HURIN as a "new book" in an obvious fraud.

If the Estate deserves money, fine.... they are entitled to it and I hope they get it. If this is just some legal ruse to abort rights that JRRT already sold and now the Estate regrets, forget them.