Director/producer Lee Daniels has responded to Dame Dash filing a lawsuit against over spilled milk. The lawsuit claims that Daniels mishandled the investment capital Damon Dash had contributed to a few projects they were collaborating on, arriving at a sum of $5 million in punitive losses. The court documents claim Lee Daniels' next film project Shadowboxer went $10 million over their stated budget. A deal is a deal right?

TMZ caught up with Lee Daniels, who surprisingly took most of the heat for going over budget. Daniels touched on the embarrassing incident captured on camera where Dash ran up on him at a Diana Ross concert this past week. Damon Dash didn't spare his feelings when publicly shameing his business partner out of his dizzy spell.

Daniels is grateful Dame Dash decided to shake him down, and is hopeful they can settle out of court, because he agrees in principle that he should repay the $2 million loan Dash gave him in confidence. "This black man gave me money when nobody ... would give me money. He did it," said Lee Daniels in utter regret. "We're gonna squash it -- and I feel good about it, he needs it right now and I'm happy to help him, 'cause he was helping me."

Happy endings for everyone on this humid afternoon.