But Warner Bros had argued that NSW was "an inappropriate forum" for the case.

Difficult movie to get to the screen: Charlize Theron in Mad Max: Fury Road.

Giving both parties seven days to make submissions on the precise form of the orders, the Chief Justice ruled that Kennedy Miller Mitchell Films and Services should pay the studio's costs for the appeal.

The filmmakers behind the Mad Max and Happy Feet movies started court proceedings against Warner Bros over unpaid earnings in September last year.

Fury Road was released to widespread acclaim – nominated for 10 Oscars and winning six – and took $US378 million ($499 million) at the worldwide box office in 2015.

It was a striking result for a difficult movie to get to the screen. Miller famously overcame more than a decade of setbacks to make it, including three major delays, three actors down to play Max in Mel Gibson, Heath Ledger then Tom Hardy and having to switch the shoot from Australia to Namibia and South Africa.

The dispute threatens the production of two more long-planned Mad Max films.

In documents filed in the Supreme Court, Kennedy Miller Mitchell claimed the studio acted in a "high-handed, insulting or reprehensible" manner.

By "destroying" the relationship of trust by allegedly refusing to pay a bonus for delivering the movie under budget and breaching a co-financing agreement, it said they could not work together again.

Both sides in the dispute have differed on the "final net cost" of the film, the key factor in whether Kennedy Miller Mitchell is eligible for the bonus of $US7 million for making it under the agreed budget of $US157 million and a share of proceeds.

The production company claimed Warner Bros approved a plan to shoot additional scenes costing $US31 million back in Australia, with these costs to be excluded from the net cost.

It claimed Fury Road cost $US154.6 million but the studio said it blew out to $US185.1 million.

In a cross-claim, Warner Bros alleged that Fury Road "significantly exceeded the approved budget", with the extra costs largely caused by the production company, without the studio's written approval.

Earlier this month, Miller said he did not know whether fans would ever get to see the next two Mad Max movies. "They're there but that's all I can say," he said.

with Michaela Whitbourn

Comments disabled

Garry Maddox

Garry Maddox is a Senior Writer for The Sydney Morning Herald.

Morning & Afternoon Newsletter

Delivered Mon–Fri.