J.R.R.Tolkien's Great-Nephew Tim Tolkien Glad About Progress In Jackson-New Line Case

While 'The Independent' itself hasn't yet posted this on their official site, ContactMusic.com reports that:

"The nephew of legendary LORD OF THE RINGS author J.R.R. TOLKIEN is pleased the legal fight which may prevent PETER JACKSON directing THE HOBBIT will soon be resolved. Jackson had been touted to take the helm for the movie prequel to the Lord Of The Rings trilogy, but the moviemaker is currently involved in a long-running court battle with New Line Cinema over alleged unpaid royalties, which may put a stop to his involvement in the new project. However, New Line studio boss and LOTR producer Robert Shaye is said to be close to initiating a ceasefire in the row and allowing Jackson back on board, according to British newspaper The Independent. Tim Tolkien says, "It would be complete madness for Peter Jackson not to be involved. This would be great news." New Line are reportedly in a rush to make The Hobbit because they only hold the rights to the novel for a limited time."

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