Just when our hopes for a third Mortal Kombat film were at their highest, a new legal battle has to come and crush them into the dirt. According to The Wrap, the new film -- a recently rumored reboot from Warner Bros -- has run into legal troubles. It seems that Threshold Entertainment has taken Warner Bros to court, claiming that it had a licensing agreement with Midway before the company was acquired by Warner Bros. Threshold, which worked with Midway on the first two Mortal Kombat films, claims the two companies extended their agreement in 2006 to make a third film, and states further that this agreement was upheld by a bankruptcy court after Midway's acquisition.

Now, the company is suing Warner Bros. on the grounds that it "failed to work with Threshold in the development and production of the third 'Mortal Kombat' film." Potential damages are to be specified later. Whatever the damages may be, it's hard to imagine they could be any more damaging than releasing a third Mortal Kombat film.

[Via GamePro]

This article was originally published on Joystiq.