It comes as no real surprise that development for Modern Warfare 3 is proceeding despite all of the legal wrangling that is going on between Activision and former Infinity Ward studio execs, Jason West and Vince Zampella. While development is limited to pre-production planning, it could be that the future of the franchise will likely not be sorted out till the legal back ‘n forth is completed, which could almost certainly delay the release without a settlement being reached.

The latest round in the legal tussle has Activision now counter-sing the duo, claiming a breach in their employment contacts. According to the posturing, it seems a lot of what the counter-claim centers on is the allegation that the two were holding or held secret meetings with representatives from rival, Electronic Arts. The duo’s attorney claims that the allegations in the counter-claim are “false and outrageous,” according to sources.

According to the whispers that we hear, both West and Zampella are currently weighing their options as far as the future and are likely to make an announcement soon. The rumblings seem to indicate that a new studio is likely, with a distribution deal with Electronic Arts. It is unknown if this new studio would have an actual deal with Electronic Arts or though the EA Partners program. Right now, there just seems to be a lot of rumors and talk, but no one can deny the fact that the two are entitled to make a living; and, of course, they are likely candidates to head a new studio.

The latest from the Infinity Ward studio is that at least some of the core lead developers are departing. While there has not been a mass exodus yet, many are very unhappy about the current state of affairs and of their treatment by Activision management. Of course, this also strengthens the likelihood that at least some of the developers could end up in this possible new studio to be led by West and Zampella.

As for the future, Activision is still claiming that they fully intend to release a new Call of Duty game every year. This would slate a release of Modern Warfare 3 for 2011; and right now, it is believed that making that date could be in jeopardy due to the current litigation. Look for this to take quite a while to play out and for it not to be resolved anytime soon.