Re: News Lawsuit: Original Manager Says Sony Owes Him More Than $10 Million
latest probate notes
Department LA 5 Court Convened at: 08:30 AM 10/29/2013
Honorable Mitchell L. Beckloff
M. Dewey , Deputy County Clerk M. Manskar , Deputy Sheriff
Linda Biche, CSR 3359 , Reporter
BP117321 1017 JACKSON, MICHAEL JOSEPH - DECEDENT
LETTERS OF ADMINISTR
PROBATE-OTHER
Petitioner(s): ARONS, RICHARD
Attorney(s): HERBERT, DANIEL B., ESQ.
Continuance Number: 1 Continuance From: Tuesday, September 10, 2013
Last Date Changed: Tuesday, October 22, 2013 03:20 PM
Last Note Changed By: MOSBORNE
To clear probate notes "filed documents" must be submitted to Rm 429, within time frames set forth in Rule 4.4 (b) of LASC Rules. You may contact the Probate Attorney or Probate Examiner whose E-Mail address appears at the end of these notes, subject to compliance with all conditions governing the use of Interactive E-Mail. E-mail Rules are available on the Court's web site at
www.LASuperiorCourt.org.
Petn filed 7/30/13
OTHER CASES:
BS 132820 & SC 114598 (DeMann Entertainment, Inc. v. John Branca as exr, John McClain, et al.)
SC 115988 (Tohme R. Tohme v. John Branca, et al.)
BP 117319 (Guardianship of Michael Joseph Jackson, Jr., Paris-Michael Katherine Jackson and Prince Michael Jackson, II)
BP 127577 (trust proceeding)
BC513048 (Richard Arons v. Sony Music Entertainment, Inc.
SUMMARY:
Petnr is assignee of undivided interest re decd's recording contracts
FACTS: Petnr is assignee of undivided interest in certain rights of decd related to decd's recording contracts with CBS Records, a Division of CBS, Inc.
In relevant part, in 1976, Jackson-Arons Enterprises (consisting of Joseph Jackson and petnr Richard Arons as equal partners) entered into a series of management agreements (the "Management Agreement") which provided, among other things, that in exchange for personal management services, decd would compensate Jackson-Arons Enterprises at the rate of 15% of all gross proceeds resulting from the services of decd within the entertainment industry (with limited exclusions). Petnr alleges that as partners, Joseph and petnr divided the 15% into two equal shares of 7.5%. By its own terms, the Management Agreement expired on 3/12/1983, though the assignment of royalties continues in perpetuity.
Petnr alleges that while he managed decd, decd's contracts invariably required decd to deliver a certain number of "master recordings," constituting one or more album deliveries. These "master recordings" made up of the (usually) two-track recordings of a single composition (using separate tracks for each instrument and vocal performance). Petnr alleges the definition of "master recordings" is standard throughout the music industry and that once a performer delivers the master recordings to the record company, the record company uses them to manufacture records for release to the public. As a result, income for master recordings includes the income from records.
Petnr alleges that in or around 1978, several disputes arose between Joseph Jackson and petnr and that the matters were settled on or about July 20, 1978. The 1978 Settlement Agreement confirmed Aron's Management Agreement with Michael Jackson, but his compensation for "non- record income" was reduced from 7.5% to 5%.
A few later, in 1981, add'l disputes arose between petnr and several of the Jackson family members, including the decd. The disputes were resolved in a settlement agreement on October 1, 1981. The terms of the 1981 Settlement Agreement provided that Arons give up the right to receive certain compensation to which he was entitled under the 1978 Settlement Agreement and under the Management Agreement. The 1981 Agreement expressly provided that Arons remained entitled to receive compensation of 7.5% on all amounts received by Michael Jackson (and the other signatories) "resulting from or relating to the recording of records ..." Petnr alleges, however, that he remained entitled to the 7.5% of all monies resulting from or relating to the master recordings earned under agreements entered into between the Jacksons and CBS Records (the "Jacksons-CBS Agreement") and Michael Jackson and CBS Records (the "Michael Jackson-CBS Agreement"). Petnr alleges the 1981 Agreement also provides that the Jacksons and Michael Jackson would instruct CBS to pay Arons the royalties to which he was entitled from the Jacksons-CBS Agreement and the Michael Jackson-CBS Agreement.
Petnr alleges that throughout the decades petnr's association with Michael Jackson, commencing with his employment as manager, and through the periods of the various settlement agreements, petnr has always been compensated for the monies received from the master recordings, excluding a short period beginning just prior to Michael Jackson's death. When Sony purchased CBS Records, Sony assumed the obligation to pay petnr and did so, though not in an amount consistent with the agreements. Petnr alleges the Estate has never complied with the Deceased's obligation to pay the royalties that CBS Records (now Sony Music Entertainment) failed to pay petnr under the assignment.
Petnr alleges decd was, and the estate is, obligated to provide petnr with royalty statements and pay petnr 7.5% in royalties on the Recording and Master Recordings completed prior to 3/12/1983.
MATTERS TO CLEAR:
A. Notice of hearing filed 9/12/13 insufficient - notice of heairng must include description of property and right to answer legend per LASC CH 4, Rule 4.37(b)(1), (2) - where appropriate, notice of hearing must be personally served, not mailed (please review Probate Code section 851(a)(1), (2) to determine who must be personally served with the notice)
B. Verified supplement to set forth all persons entitled to notice and special notice/copy of this petition - include address and relationship of persons to this proceeding
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objs filed 9/6/13
objrs are John McClain and John Branca
objrs counsel are Howard Weitzman (Kinsella Weitzman Iser Kump & Aldisert LLP)
SUMMARY:
Objrs are co-extrs
Objs served
ARGUMENT: General denial of factual allegations. Objrs allege the PC850 petition is wholly w/o merit as the documents at issue cannot possibly be read to grant petnr the broad rights to royalties he now claims to have. The relief is furthermore barred by: a) petnr's failure to file a creditor's claim with respect to the master recording royalties at issue; b) the applicable statutes of limitations; and c) equitable doctrines such as laches, estoppel, waiver, and unclean hands.
MATTERS TO CLEAR:
A. Objs not verified per PC1020 et seq. - supp reqd
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RELIEF:
1. JTD that the estate holds in trust, as constructive tee, fbo petnr, 7.5% of all royalties and other amounts received by, or otherwise accruing to or for the benefit of, decd and the estate, excluding mechanical royalties, from the exploitation of the master recordings created up to and including March 12, 1983
2. JTD compensatory damages, including, but not limited to royalties due to Arons under the Michael Jackson-CBS and Jackson-CBS Agreements, in an amount to be proven at rial, but not less than $10,000,000
3. JTD general and special damages according to proof at trial
4. JTD exemplary and punitive damages according to proof at trial but sufficient to deter future conduct of the same or similar nature, based on the value of the estate
5. JTD accounting
6. JTD for a declaration that:
a) Petnr is entitled to detailed statements accounting for all royalties due to Arons;
b) The Estate is obligated to pay Arons royalties for the Recordings and Master Recordings created on or before March 12, 1983 and arising out of the Michael Jackson- CBS and Jackson-CBS Agreements;
c) The Estate is obligated to pay Arons royalties for the Recordings and Master Recordings completed on or before March 12, 1983 and arising out of the Michael Jackson- CBS and Jackson-CBS Agreements in perpetuity;
d) The Estate has failed to pay Arons the full amount of royalties lie is due for the Recordings and Master Recordings created on or before March 12, 1983 and arising out of the Michael Jackson-CBS and Jackson-CBS Agreements; and
e) Petitioner is entitled to the damages suffered as a result of the Estate's refusal to pay Arons the full amount due to him
7. JTD costs of suit
8. JTD interest on each of the foregoing sums at the legal rate
9. JTD objections: a) denying the petition in its entirety; b) awarding extrs their costs and attys' fees due to the frivolousness of petnr's claims and pursuant to Section 7.11 of the November 1990 Settlement Agreement
PA COMMENTS: See remaining notes re notice - o/w evidentiary hrg reqd