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It seems that Peter Jackson isn’t the only person New Line Cinema failed to give a proper cut of profits.

The film studio is now being sued by the estate of the late J.R.R. Tolkien, the author of “The Lord of the Rings” trilogy, reports USA Today.

The Tolkien Trust and HarperCollins, who originally printed the books, filed the lawsuit Monday. The suit claims that 7.5% of the gross receipts from the films is still owed to the estate and other plaintiffs. With the films bringing in billions of dollars, that’s a huge chunk of change.

It took Jackson years of fighting with New Line before he got the money that was owed to him by New Line, but their relationship has been repaired. Jackson will the be producer on “The Hobbit,” also by Tolkien. No word yet on whether this new lawsuit will affect production.

Guillermo Del Toro may have won a ticket to Middle Earth.

According to the Hollywood Reporter, the filmmaker is in talks to take the reigns from Peter Jackson and direct “The Hobbit.” The J.R.R. Tolkien novel will reportedly be split into two films, with Jackson producing.

Del Toro has already built a strong following in the science fiction and fantasy crowd, with the Oscar-nominated “Pan’s Labyrinth” and cult hit “Hellboy.”

Jackson, who co-wrote and directed the “Lord of the Rings” trilogy, is already committed to several other projects, so he will not be able to write the “Hobbit” script. The process of picking a writer will be fast-tracked once the Writer’s Guild of America strike has been resolved.

In the meantime, Del Toro already has a full plate with 12 projects in various stages of development.

Peter Jackson will get to travel back to Middle Earth for “The Hobbit” and its sequel after all.

The Oscar-winning director has settled his issues with New Line Cinema, which were preventing him from joining the project. New Line owed him considerable profits from the “Lord of the Rings” trilogy, and there was a public falling out that had many fans outraged.

Now that the partnership is back on, Peter Jackson and collaborator Fran Walsh will indeed be on the team as the producers, according to the press release out today. Jackson stated, “I’m very pleased that we’ve been able to put our differences behind us, so that we may begin a new chapter with our old friends at New Line. ‘The Lord of the Rings’ is a legacy we proudly share with Bob and Michael (the New Line CEOs), and together, we share that legacy with millions of loyal fans all over the world. We are delighted to continue our journey through Middle Earth. I also want to thank Harry Sloan and our new friends at MGM for helping us find the common ground necessary to continue that journey.”

No official word has been released on who will direct. Sam Raimi was rumoured to have the job, and said he would refuse if Jackson was not producing.

Head of film studio New Line BOB SHAYE insists THE LORD OF THE RINGS Oscar winner PETER JACKSON will never be allowed to direct THE HOBBIT while he is at the company.

Jackson and his production company Wingnut Films are currently embroiled in a legal dispute with New Line Cinema over royalties from The Lord Of The Rings trilogy. And the lawsuit has enraged the film studio so much they won’t allow the Jackson a chance to the upcoming fantasy prequel.

He fumes, “He’s got a quarter of a billion dollars paid to him so far, justifiably, according to contract, completely right.

“And this guy… turns around without wanting to have a discussion with us and sues us and refuses to discuss it unless we just give in to his plan.

“I don’t want to work with that guy any more. Why would I? So the answer is he will never make any movie with New Line Cinema again while I’m still working at the company.”

Lord of the Ring stars SIR IAN McKELLEN and ELIJAH WOOD have already expressed their disappointment at the news.

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Sir Ian McKellen, who pretty much made the role of Gandalf in The Lord of the Rings movies, is threatening not to reprise his role in the upcoming Hobbit movies.

McKellen is as mad as a raging fanboy over reports that Peter Jackson won’t be directing the prequel to the fantasy series.

“I’m very sad as I should have relished revisiting middle Earth with Peter again as team-leader,” he says, according to Contactmusic.com.

“It’s hard to imagine any other director matching his achievement in Tolkien country.”

New Line canned Jackson because his production company, Wingnut Films, is in a legal battle with New Line Cinema over royalties from The Lord Of The Rings trilogy.

Toronto’s production of “The Lord of the Rings” might close as early as Labour Day, the Toronto Star reports.

Sources tell the paper that a formal announcement regarding an official closing date will come in the next days or weeks. Tickets for the show are currently on sale until Sept. 24.

Last week it was announced the musical will make it’s London premiere next year. The musical also swept the Dora awards on Monday night.

“I’m not saying a word about this,” David Mirvish said to the paper when asked to comment on the speculation.

According the Star, if a closing date were announced now, it may boost ticket sales from people who otherwise would have been waiting until the fall to buy their tickets to the show.

Critically, “The Lord of the Rings” flopped, but it has brought in quite an audience, due in part to advance ticket sales, especially from Mirvish subscribers.

The musical version of J.R.R. Tolkien’s epic trilogy, “The Lord of the Rings,” is set to open in London, UK next June after its world premiere in Toronto.

Reuters reports that the production will move into London’s Theater Royal Drury Lane, taking over for Mel Brooks’ award-winning musical, “The Producers.”

The premiere run in Toronto has received mixed reviews from critics, something that producer Kevin Wallace said has been taken into consideration for the British run.

“The writers have been doing some reworking. This will be a cut and reworked version with more music and we have edited out some of the sub-plot,” he said.

Wallace also said that, at a cost of ?12.5 million ($25.5 million CAD), it’s the most expensive musical ever staged in London.

J.R.R. Tolkien’s magnificent fantasy trilogy has sold more than 200 million copies. The Oscar-winning three-film adaptation broke box office records worldwide. Next year, The Lord of the Rings will arrive on stage.

After auditioning 4000 hopefuls for the ambitious theatrical production, director Matthew Warchus and producer Kevin Wallace issued a press release today announcing the final cast of 55 for the world premiere of The Lord of the Rings musical.

“I am particularly proud of the huge diversity of skill in the company,” Warchus said. “Wonderful, experienced actors will be working alongside acrobats, stilt-walkers and outstanding singers, all pooling their talents to bring this magical story alive on the stage. Given the size of the show, this is bound to be the most gruelling production process any of us has been through, but when I look at this company, I am eager to begin!”

The cast members hail from across Canada and also from the United Kingdom.

Brent Carver, one of Canada?s greatest performers, leads the cast in the role of the wizard Gandalf. Carver, whom Warchus described as “a long-time prince of Canadian theatre,” has won a Tony Award for Best Actor in Kiss of the Spider Woman on Broadway.

?It is a great privilege and honour to have Brent Carver leading our outstanding company of performers,? Warchus said. ?As one of the greatest actors of his generation anywhere in the world, he has demonstrated dazzling versatility and prowess on stage and screen, in every genre from musicals to classic plays. …He is aptly suited to be the inspiring leader and father figure to this dynamic young company.”

Young British actor James Loye has been cast as Frodo, the Ringbearer. Wallace enthused, ?There is an indefinable quality about James that sets him apart as the actor fit to fulfill the momentous responsibility of creating J.R.R. Tolkien?s Frodo Baggins on stage.?

Michael Therriault, a Dora Award-winning Best Actor currently starring on Broadway in Fiddler on the Roof, will play the creature known as Gollum. ?Michael has an intriguing originality,” said Wallace, “…that makes him a very exciting choice as Frodo’s ’shadow’ – the tormented and pitifully corrupted hobbit, Gollum.?

Not all of the cast are stage veterans. Peter Howe makes his professional debut as Samwise Gamgee, Frodo?s faithful friend. Howe was discovered after he wrote to the London production office requesting an audition.

After an extensive search, the perfect combination of mischief and personality was found in Canadian Dylan Roberts and Irishman Owen Sharpe, who respectively play impish hobbits Merry and Pippin. “They are a fantastic pair,? added Wallace.

The Fellowship of the Ring is completed with Evan Buliung, a Shaw Festival favourite, playing Aragorn; Gabriel Burrafato, a musical theatre veteran, as Legolas; and Dion Johnstone, a noted Stratford actor, as Boromir.

Richard McMillan, who originated the role of Scar in the Canadian premiere production of Disney?s The Lion King, will play the corrupt wizard Saruman. In the role of the elf princess Arwen is Carly Street, who in Wallace’s words “did a dazzling audition.”

The roles of Galadriel, Gimli and Bilbo have yet to be cast and will be announced at a later date.

Performances of The Lord of the Rings will begin February 2, 2006 at the Princess of Wales Theatre in Toronto. The gala opening performance will be on March 23, 2006. For tickets, visit www.lotr.com or call 416-872-1212.