You may have heard that New Line Cinemas had been having a war of words with director Peter Jackson for the past couple of years over royalties from the Lord of the Rings films. In short, Jackson feels that he was shorted millions of dollars; yet, while New Line disagrees, they won’t turn over their books for an audit. The whole thing has been going back and forth in court.

Today, Variety is reporting that the judge in the case has ordered New Line to pay a $125,000 sanction and turn over their records immediately for audit.

What does this mean? It means that a deal will most likely be struck between the two parties.

But what does THAT mean? It means that tensions between the two will soften, allowing for a deal to be struck that will have Peter Jackson directing a film version of “The Hobbit”, the prequel to LOTR.

You can read the Entertainment Weekly article by clicking here.