Arts and entertainment reports from The Times, national and international news services and the nation’s press.

LEGAL FILE

Jackson Family Victory: After a lengthy court battle, Michael Jackson and the rest of his family emerged victorious Thursday when a federal judge ruled that they were not liable for more than $1 million in losses incurred by the producers of the ill-fated 1994 “Jackson Family Honors” TV show. The show was delayed several weeks because Jackson was ill, then was moved from Atlantic City to Las Vegas, where Jackson presented an award to longtime friend Elizabeth Taylor but did not perform solo. The producers, Smith-Hemion, had contended that the show flopped because Jackson did not perform. “We are extremely grateful to the judge,” the family’s attorney Brian Oxman said. “He saw that this was a misunderstanding [and] that Michael Jackson never promised to appear.” Smith-Hemion’s attorney was unavailable for comment.

MOVIES

At the Festivals: Speaking of Michael Jackson, the pop star’s 35-minute music video, “Ghosts,” has been lined up for opening night of the 1997 Palm Springs International Short Film Festival. The Aug. 6-10 festival features 200 short films from 22 countries. Other entries include “Better Late,” a new short by last year’s Oscar winner in the short documentary category, Jessica Yu (“Breathing Lessons”). . . . Meanwhile, the Santa Barbara International Film Festival has named movie producer Renee Missell (“The Main Event,” “Nell”) as artistic director. Entries for the 1998 festival, set for March 5-15, will be accepted through Dec. 1.

TELEVISION

Midseason Fare: The networks continue to pick up one another’s leftovers, with CBS having acquired “Unsolved Mysteries”--recently canceled by NBC after a nine-year run--for a midseason replacement series. CBS has also ordered a backup series based on the movie “The Magnificent Seven,” featuring a cast that includes Michael Biehn (“Aliens”) and Ron Perlman (“Beauty and the Beast”). . . . Over at ABC, meanwhile, model/MTV personality Daisy Fuentes is replacing Bob Saget as host of “America’s Funniest Home Videos.” The long-running show has been relegated to a backup role next season.

STAGE

‘Class’ Action Threats: Faye Dunaway has reportedly threatened to quit the “Master Class” tour, scheduled to resume Tuesday in Portland, if film producer Lester Persky’s lawsuit against the play’s producers, writer Terrence McNally and Dunaway isn’t settled by then. Persky contends that he successfully negotiated for the film rights to the play, but that the play’s producers then granted Dunaway those rights as part of her agreement to star in the tour. Persky’s attorney claims Dunaway has now “broken ranks. This acknowledges that Lester Persky has been wronged.” The play’s co-producer Robert Whitehead confirmed that Dunaway had sent word that she’ll quit, which he said would be “totally in breach of contract.” He wouldn’t discuss other details, referring to the flap as “a little backstage madness.” Dunaway, who closed the L.A. run of “Master Class” Sunday, couldn’t be reached.

ART

Cramer, MOCA Make Nice: Douglas S. Cramer, a television producer and former Museum of Contemporary Art trustee, who moved to New York last year and sold about $3 million worth of art at a May auction, has given MOCA four artworks from his collection: two wood sculptures by Richard Artschwager, a painting by William Brice and a metal relief by Frank Stella. The donation ends several months of speculation about a possible Cramer gift and apparently heals a rift that developed when MOCA rejected an earlier offer of different artworks because they duplicated the museum’s holdings or did not enhance its collection.

POP/ROCK

Surf’s Up, Again: “MOM: Music for Our Mother Ocean,” a 1996 album featuring surf-related tracks from Pearl Jam, Beastie Boys, the Ramones and pre-massive-fame tracks from Jewel and No Doubt, raised more than $200,000 for the Southern California-based Surfrider Foundation’s clean waters campaign. Now a sequel, “MOM II,” is due Aug. 26 on San Diego’s Surfdog Records, with Jewel returning to contribute a vampy, saucy new song titled “V-12 Cadillac.” It was written by Danny Aarberg, who co-wrote the surf movie “Big Wednesday” and taught Jewel how to surf when the singer was still living in her van in the San Diego area. The album also includes tracks by the Mighty Mighty Bosstones, Jimmy Buffett and the Beach Boys; a new version of the “Pulp Fiction”-revived classic “Misirlou” by surf guitar god Dick Dale; and rarities from Porno for Pyros and Moby.

QUICK TAKES

Grammy-winning gospel performer Kirk Franklin has signed with Universal Television to star in and co-produce a comedy series. Ralph Farquhar, who helped teenage singer Brandy become TV’s “Moesha,” will develop the series. . . . Eddie Murphy has dropped his $5-million libel suit against the National Enquirer over the May article “Eddie Murphy’s Secret Sex Life--His Transvestite Hooker Tells All.” The actor’s spokesman said that Murphy had decided the tabloid didn’t act maliciously. A separate $5-million suit against the Globe tabloid over a similar article was settled earlier out of court. . . . Disney’s “Hercules” will be screened in TheatreVision--a technology that adds description for the vision impaired--today through Sunday at North Hollywood’s Century Theater 8.