Demann - MJ Estate / Former Michael Jackson Manager Pursuing Estate Over Commissions

ivy

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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

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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.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

I don't understand something here. He waited 20 years to do something :doh:
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

seems that demann wants to have a nosey at records they arent entitled to see imo.thats why htey are going after the estate instead of going to sony
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

I don't understand something here. He waited 20 years to do something :doh:

actually he gets his commission, he just feels like as Michael died and as his albums are selling like hot cakes, DeMann should be getting more money. In order to make sure that he's getting what he's supposed to get, he wants to audit the books.

Estate says Sony has the sales number and the reports / statements for those and the commissions and they have no problem with them looking to Sony's records and even volunteering to arrange it. DeMann's lawyer says no and wants to see Estate's records because they think they'll have more info than Sony such as the agreements etc involving these songs.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

And here we go again. It is amazing how many businesses Michael is supporting after his death.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

actually he gets his commission, he just feels like as Michael died and as his albums are selling like hot cakes, DeMann should be getting more money. In order to make sure that he's getting what he's supposed to get, he wants to audit the books.

Estate says Sony has the sales number and the reports / statements for those and the commissions and they have no problem with them looking to Sony's records and even volunteering to arrange it. DeMann's lawyer says no and wants to see Estate's records because they think they'll have more info than Sony such as the agreements etc involving these songs.

This will get hot. :fear: :(


Thanks for explaining Ivy! :)
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

such people like now those from the DeMann Entertainment have their media agenda, they just want to know (and I am sure they are paid ... lets say from tabloid papers) the details about MJs business matters for media (and individual) purposes...

Its all about the hidden media agendas=spying...
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

I find it suspicious that they don't want to deal with Sony. Isn't Sony the record company for Michael at that time? I kind of wish people wouldn't know how much the estate makes because when people see these big numbers they use any connection to Michael. I understand getting commision but it doesn't seem they want to make this easy as possible. Maybe I am just being paranoid.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

smh...people who have been out of Michael's life and business for decades trying their luck for a slice of that pie. I don't think these guys will end up getting anything.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

actually he gets his commission, he just feels like as Michael died and as his albums are selling like hot cakes, DeMann should be getting more money. In order to make sure that he's getting what he's supposed to get, he wants to audit the books.

Estate says Sony has the sales number and the reports / statements for those and the commissions and they have no problem with them looking to Sony's records and even volunteering to arrange it. DeMann's lawyer says no and wants to see Estate's records because they think they'll have more info than Sony such as the agreements etc involving these songs.
thanks for explaining :wub:
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Eh... yet even more people thinking only about money.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

I thought FREDDIE DEMANN had died some years ago, by the time he was managing SHAKIRA.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Former Manager Sues Michael Jackson's Estate


By NICK MCCANN


LOS ANGELES (CN) - Michael Jackson's manager of 30 years ago, who claims he launched Jackson on his solo career, says the King of Pop's estate owes him commissions and will not let him look at the books to find out how much.
Freddy DeMann founded DeMann Entertainment, the successor to Weisner-DeMann Entertainment. DeMann claims he was Jackson's manager from 1978 to 1983.
DeMann Entertainment sued the executors of Jackson's estate - John Branca and John McClain - in Superior Court.
DeMann claims that under his management, Jackson recorded the hit albums "Off the Wall" (1979) and "Thriller" (1982), one of the best-selling albums of all time.
DeMann claims he persuaded Jackson to hire Quincy Jones to produce the records, and arranged for MTV to play the video for the song "Billy Jean."
"Now that the recordings, dances, likeness, styles and public persona of Michael Jackson created while Mr. DeMann and his companies managed Michael Jackson have been translated into the newest forms of amusements ranging from video games to Cirque Du Soleil, the executors of Michael Jackson's Estate have elected to deny plaintiff DeMann its rights under the 1978 management agreement," the complaint states.
DeMann says the video game "Michael Jackson: The Experience" and the Cirque du Soleil tribute show "Michael Jackson: The Immortal World Tour" both use songs from "Off the Wall" and "Thriller."
DeMann says the Jackson estate has repeatedly refused to let him examine its books. That denial, he says, "betrayed Michael Jackson's express wish embodied in the attached written contract that those who worked for his benefit share in his success. Mr. DeMann's friend Michael Jackson would be appalled by this misconduct."
The complaint adds: "Consistent with its efforts to conceal its books and records, the Jackson Estate also has refused to inform DeMann Entertainment of the Jackson Estate's gross revenues earned from activities undertaken after Michael Jackson's death ... which would permit DeMann Entertainment to calculate the commissions owed to it."
DeMann wants to look at the books, and damages for breach of contract.
DeMann Entertainment is represented by Bert Deixler with Kendall Brill & Klieger.
Source

We need a new category to compile all these lawsuits under. My suggestion? : Vultures
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Thats a new argument. mj would be upset that the estate arent sharing the money with ppl mj wanted it shared with!
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Thats a new argument. mj would be upset that the estate arent sharing the money with ppl mj wanted it shared with!
how do we know MJ wanted to share it with them? If he intended to share he would've written it down. simple as that imo.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Thats a new argument. mj would be upset that the estate arent sharing the money with ppl mj wanted it shared with!
But Its not the estate that pays out the commisions its Sony who pays these royalties. Estate offered to set up a meeting with Sony for Demann. They refuse and want estate to open its books to them. I think Sony would also have the agreements being they are the ones paying out on these contracts. Their requests for Estate records seems very fishy to me.


how do we know MJ wanted to share it with them? If he intended to share he would've written it down. simple as that imo.
It is written down there is a contract and Demann is paid . He want to see what sales are to make sure he is getting correct share. Its common sense SONY has these numbers so its very suspect he want estate to open their books.
 
Re: Former Michael Jackson Manager Pursuing Estate Over Commissions

Sorry i was being sarcastic. Hes just sniffing around for more money wanting to see the estates books
 
Department LA 5 Court Convened at: 8:30:00 AM 1/19/2012

Honorable Mitchell L. Beckloff
M. Dewey , Deputy County Clerk M. Manskar , Deputy Sheriff
Elizabeth Virgoe, CSR 11732 , Reporter

BP117321 101 JACKSON, MICHAEL JOSEPH - DECEDENT
Letters of Administr
INSTRUCTIONS

Petitioner(s): Branca, John McClain, John

Attorney(s): Hoffman, Paul Gordon, Esq.

Continuance Number: 2 Continuance From: Wednesday, October 19, 2011

Last Date Changed: Tuesday, January 10, 2012 1:58:17 PM

Filed 7/12/11

PRIOR ORDER: Cont to 1/19/12 ; 10/19/11 at 8:30 am ;

SUMMARY:
Petnrs are co-exrs
ntc to benes ok
ntcs to DaMann via his attys ok
spec ntc/copy ok

OTHER CASES: BS 132820 DeMann Entertainment, Inc. v. John Branca, as Excutor, John McClain, et al (ntc of related cases filed 7/26/11)

FACTS: petnrs seek the Crt's instruction re a demand made by Freddy DeMann to audit the books and records of the estate & compel the estate to arbitrate issues arising from a personal management contract that terminated more than 28 yrs prior to the decd's d/d
on 7/1/78 the decd & his brothers entered into an agreement w/Weisner-DeMann Entertainment (DeMann is its successor) for personal management svcs - 5 yrs later the decd terminated that agreement - the contract provided that as compensation for svcs De-Mann would receive 10% of the Jackson parties' gross earnings during the period of the contract w/the exception of certain designated sources of revenue - the contract provided for pmt of continuing comm following its termination, but comm were limited to earnings resulting from or w/respect to contracts "substantially negotiated and/or entered into during the term or entered into w/in 6 mos thereafter as a result of offers made or negotiations commenced during the term & upon any and all extensions, renewals and substitutions thereof" -
the contract does not state it obligates (or inures to the benefit of) the decd's heirs, successors in interest or assigns
The contract was modified in 1981 to further define & limit the recordings that were subject to the 10% comm - as to the decd/estate, DeMann is only entitled to comm on the sales & uses of recordings contained on the albums Thriller & Off the Wall - Sony Music controls the use of these recordings, as the estate's exclusive licensee, and distributes the royalties generated - Sony Music has possession & control of all financial docs relevant to the sales - Puruant to a letter dated 8/25/82 Sony (& its predecessor CBS) have pd DeMann directly w/o involvement from the Jackson parties
DeMann has not filed a creditor's claim
DeMann has demanded to examine the estate's books & records to determine whether or not and to what extent he is entitled to any of the estate's or decd's earnings over & above the comm he receives directly from CBS Records & its successor Sony Music for the last 28 yrs
Petnrs do not believe DeMann is owed any money from the estate nevertheless, w/o waiving any rights, petnrs have agreed to allow DeMann to conduct an audit -- however, a dispute has arisen concerning the books & records DeMann is entitled to examine -- the scope of DeMann's dispute is related to commission rights - petnrs offered to only provide him w/the customary docs provided in an audit of the sale & use of master recordings that are relevant to the calculation of commissions -- DeMann, on the other hand, asserts he has an unrestricted right to examine all of the books & records of the estate & has demanded that petnrs submit to arbitration or he will file a petn/motion to compel arbitration
Under CA law, petnrs, cannot be compelled to arbitrate & cannot enter into an agreement to arbitrate absent Crt approval (PC 9621) -- petnrs do not be it is in the estate's best interests to arbitrate and are seeking this crt's order instructing them to provide DeMann those books & records in their possession & control that are relevant to the calculation of DeMann's comm & which would customarily be provided in such an audit, subject to an appropriate non-disclosure agreement, and instructing petnrs to defend the estate against any attempt to compel arbitration initiated by DeMann
**********************************************************
RESPONSE FILED 1/04/12
RESPONDENT: DEMANN ENTERTAINMENT, INC.
ATTORNEY: STEPHEN M. LOWE, ESQ.
***********************************************************
SUMMARY-OBJS
Objector is claimant
svd 1/4/12

FACTS-OBJS
Petn has been mooted and superseded by objector's civil complaint in SC114598. Objects and requests orders below

MATTERS TO BE CLEARED-OBJS - N/A

RELIEF:
1. JTD instruct petnrs to provide DeMann those books & records in their possession & control that are relevant to the calculation of DeMann's commission & which would customarily be provided in such an audit, subject to an appropriate non-disclosure agreement
2. JTD instruct petnrs to defend the estate against any attempt to compel arbitration initiated by MdMann
3. JTD OBJECTIONS - DWOP petn or abate until resolution of objector's civil complaint
4. JTD OBJECTIONS - alternatively, extrs make all books and records of the Estate since decd's death pertaining to gross monies or other considerations available to boecjtor for an audit and inspection

PA's COMMENTS: T/T but see objs filed and civil complaint now filed
 
Sigh. More lawsuits in life than the majority and lawsuits in death.
 
They should only be allowed see the books that pertain to the calculation of what may be owed. Not all the estate books that they requested. For some strange reason I think Joe Jackson or someone sinister is behind this. It just seems very ODD they think they can have access to ALL the Estate books for making such a petty claim. Its Very Suspicious to me.
 
Judge hasn't decided yet. This just shows two sides arguments, we'll see what he decides - all books or limited books - soon.
 
The hearing is next week.


summary of arguments

Department LA 5 Court Convened at: 10:00:00 AM 3/7/2012

BP117321 301 JACKSON, MICHAEL JOSEPH - DECEDENT

PRIOR ORDER: Cont to 3/7/12 at 10:00 am
 
The estate let them see the relevant books but DeMann wants to see more than he needs to?

"DeMann, on the other hand, asserts he has an unrestricted right to examine all of the books & records of the estate & has demanded that petnrs submit to arbitration or he will file a petn/motion to compel arbitration "

How strange! Didn't Tohme wanted to see all the books too?
Speculation alert! Is Tohme friend with DeMann?
 
So this hearing is finally coming up. I am curious about the ruling. Gee we have so many hearings/suits to keep tabs on. The estate admin really have a difficult job to do and I am grateful they are very competent people.
 
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