As we find out more, I think the royalties are the most interesting part of this, and tie into the other claim.
Since there's nothing to suggest otherwise (and McDevitt only refuted the likeness issue), if we take the lawsuit at face value about the lack of royalty payments, why wasn't WWE paying royalties to Owen Hart's estate? Was there something about that in the wrongful death settlement? Did they just figure that since Martha cut herself off from wrestling and the Harts, she wouldn't know about the various DVD releases (which she would be pissed off by) and thus they could hold the money back (which, while stupid, is not be an entirely unfounded belief going by her not finding out about them until the "Hart and Soul" DVD came out with Owen on the cover)? Did they have a feeling she'd file a suit like this if she knew they released footage of him? Has Chris Benoit's estate been getting royalties for the DVDs with him that were sold after the murder-suicide?
I wonder if we'll get any WWE royalty accounting records out of this. Even though it's a totally different market for videos than it was in 1996 (or even 1999), it would be interesting to see what he was paid for tapes of certain shows released on VHS while he was under this contract, since theoretically the estate should be getting the same percentage for any re-releases (WMs, Summerslams, and Rumbles at least via the Anthology sets).