Since Michael Jackson died in 2009, the estate has been raking in money, earning estimated profits of more than $300 million through music sales and licensing projects.
Now, the personal management firm of DeMann Entertainment, which represented Jackson from the lucrative period between 1978 to 1983, is seeking its cut from the newfound success.
On Tuesday, Demann Entertainment (formerly Weisner-Demann) filed a motion in LA Superior Court to compel arbitration with John Branca, the executor of the Michael Jackson estate.
Demann asserts that its 1978 personal management agreement with Jackson entitles it to certain monetary commissions as well as an "unrestricted and unlimited right" to audit financial records to make sure that proper commissions are being paid. The firm says it has read press accounts of the success that the MJ estate has enjoyed recently, and has reason to believe it has not been paid in full.
In January, Demann sent notice about its intention to audit, but allegedly the estate returned word that the firm would have to go through Sony Music, and that it would "support" such action.
This hasn't been sufficient for Demann, who has followed up with further letters to the estate, demanding to see its books, with belief that the estate is in control over full relevant financial documentation.
Having not gotten what it wanted, Demann next tried to trigger the arbitration provisions of its personal management agreement with Jackson, but according to the lawsuit, the estate has refused to submit the dispute to arbitration. Now, DeMann is seeking to compel it.
Branca wasn't immediately available for comment.
http://www.hollywoodreporter.com/thr-esq/michael-jackson-manager-pursuing-estate-210759
------------------------------------
Ivy's note: I looked over the documents this seems like nothing more than a disagreement of how to move forward.
-Ron Weisner - Frederick DeMann had a personal management agreement with Michael, Marlon, Randy, Tito and Jackie between 1978 - 1983.
- They state that their 5 year work with Michael entitled them to some commissions. (up to 10% is mentioned. and Michael released Off the Wall and Thriller during this time)
- After Michael's death and the increased sales DeMann wonders if he's being paid all the commissions he's supposed to get.
- So DeMann wants to audit Estate's books and sends them a notice.
- DeMann claims that Estate delayed their response and didn't accept audit requests and rather forwarded them to Sony and that's why they are filing this motion to compel arbitration. They are also asking for the costs they had due to this.
A bunch of emails between Estate's lawyer Howard Weitzman and DeMann's lawyer is also included. In those emails:
- Weitzman says that Michael Jackson Estate doesn't represent Tito, Randy, Jackie and Marlon.
- Weitzman expresses that the reports are prepared by Sony and MJ Estate gets the same statements as DeMann got from Sony. And that Sony is the responsible party for such commission payments.
- Weitzman volunteers to talk with Sony and arrange an audit of Sony's records and/or get Sony give them the information they want.
Overall after reading the email communications it seems like Estate is saying that Sony is the one responsible for the commissions and the reports and the audit should happen with them. DeMann's lawyers seem to be interested in more documents than Sony has or can give such as any underlying agreements that involves these songs that DeMann has a right on. Therefore they aren't too keen on involving Sony.
Now, the personal management firm of DeMann Entertainment, which represented Jackson from the lucrative period between 1978 to 1983, is seeking its cut from the newfound success.
On Tuesday, Demann Entertainment (formerly Weisner-Demann) filed a motion in LA Superior Court to compel arbitration with John Branca, the executor of the Michael Jackson estate.
Demann asserts that its 1978 personal management agreement with Jackson entitles it to certain monetary commissions as well as an "unrestricted and unlimited right" to audit financial records to make sure that proper commissions are being paid. The firm says it has read press accounts of the success that the MJ estate has enjoyed recently, and has reason to believe it has not been paid in full.
In January, Demann sent notice about its intention to audit, but allegedly the estate returned word that the firm would have to go through Sony Music, and that it would "support" such action.
This hasn't been sufficient for Demann, who has followed up with further letters to the estate, demanding to see its books, with belief that the estate is in control over full relevant financial documentation.
Having not gotten what it wanted, Demann next tried to trigger the arbitration provisions of its personal management agreement with Jackson, but according to the lawsuit, the estate has refused to submit the dispute to arbitration. Now, DeMann is seeking to compel it.
Branca wasn't immediately available for comment.
http://www.hollywoodreporter.com/thr-esq/michael-jackson-manager-pursuing-estate-210759
------------------------------------
Ivy's note: I looked over the documents this seems like nothing more than a disagreement of how to move forward.
-Ron Weisner - Frederick DeMann had a personal management agreement with Michael, Marlon, Randy, Tito and Jackie between 1978 - 1983.
- They state that their 5 year work with Michael entitled them to some commissions. (up to 10% is mentioned. and Michael released Off the Wall and Thriller during this time)
- After Michael's death and the increased sales DeMann wonders if he's being paid all the commissions he's supposed to get.
- So DeMann wants to audit Estate's books and sends them a notice.
- DeMann claims that Estate delayed their response and didn't accept audit requests and rather forwarded them to Sony and that's why they are filing this motion to compel arbitration. They are also asking for the costs they had due to this.
A bunch of emails between Estate's lawyer Howard Weitzman and DeMann's lawyer is also included. In those emails:
- Weitzman says that Michael Jackson Estate doesn't represent Tito, Randy, Jackie and Marlon.
- Weitzman expresses that the reports are prepared by Sony and MJ Estate gets the same statements as DeMann got from Sony. And that Sony is the responsible party for such commission payments.
- Weitzman volunteers to talk with Sony and arrange an audit of Sony's records and/or get Sony give them the information they want.
Overall after reading the email communications it seems like Estate is saying that Sony is the one responsible for the commissions and the reports and the audit should happen with them. DeMann's lawyers seem to be interested in more documents than Sony has or can give such as any underlying agreements that involves these songs that DeMann has a right on. Therefore they aren't too keen on involving Sony.