Daniel Calparsoro is directing from a screenplay by S Craig Zahler about volunteer cooks at an insane asylum who get trapped inside the building with the cream of the criminally insane after a major thunderstorm.
Vertigo's Roy Lee and Doug Davison will produce alongside Drew Crevello. Ghost House principal Rob Tapert, Joe Drake and Nathan Kahane will serve as executive producers with Vertigo's Sonny Mahli.
Ghost House and Vertigo previously collaborated on The Grudge and The Grudge 2.
'Incident is grisly, viscerally shocking, and an absolute thrill-ride from beginning to end,' Tapert said. 'Craig did a fantastic job at capturing madness and cruelty in its most primal form. With Daniel's talents, this film is bound to surprise and please even the most jaded of the horror audience.'
Calparsoro's previously directed the Spanish films Ausentes and Guerreros. He is currently developing another project with Vertigo and is represented by UTA and attorney Warren Dern of Sloane, Offer, Weber, Dern.
Zahler is represented by UTA and P J Shapiro of Ziffren, Brittenham, Branca, Fischer, Gilbert-Lurie, Stiffelman, Cook, Johnson, Lande & Wolfe.
Ghost House's upcoming slate features David Slade's 30 Days Of Night to be released by Columbia Pictures this autumn. Vertigo's roster includes the remake of The Eye starring Jessica Alba and Addicted starring Sarah Michelle Gellar.
Rob McEntegart and Dan Freedman negotiated the deals on behalf of Ghost House with UTA and Rick Genow of Stone, Meyer & Genow on behalf of Vertigo and Julian Zajfen of Jackoway, Tyerman, Wertheimer, Austen, Mandlebaum & Morris for Crevello.