BP117321 116 JACKSON, MICHAEL JOSEPH - DECEDENT
Letters of Administr
INSTRUCTIONS
Petitioner(s): Branca, John McClain, John
Attorney(s): Hoffman, Paul Gordon, Esq.
Continuance Number: 5 Continuance From: Tuesday, May 08, 2012
Last Date Changed: Tuesday, June 12, 2012 8:48:18 AM
Last Note Changed By: RWADA
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Filed 7/12/11
PRIOR ORDER: Cont to 6/19/12 at 8:30 am; 5/8/12 at 10:00 am ; 3/7/12 at 10:00 am ; 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
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RESPONSE FILED 1/04/12
RESPONDENT: DEMANN ENTERTAINMENT, INC.
ATTORNEY: STEPHEN M. LOWE, ESQ.
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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
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Ivy or someone who knows about law. DeMann wants to see all the books, and the estate only wants to show books relevant for his claim. Seemingly they cannot agree with this, and are in loggerheads, is the estate looking help (instructions) from the judge how to proceed from now?