Delaware Judge: Maverick can pursue lawsuits in LA
A judge on Friday cleared the way for Madonna’s Maverick Records label to proceed with a lawsuit filed here against Warner Music Group, temporarily staying a separate case brought earlier in Delaware by the record company against its joint venture partner.
Delaware Court of Chancery Vice Chancellor Leo E. Strine Jr., ruled that the legal disputes could be tried in Los Angeles, on condition that the case go to trial no later than early November, representatives of both companies said Friday.
Strine stipulated both sides had until May 18 to secure a trial date from the Los Angeles Superior Court system within that time frame, or he would proceed with the case in Delaware.
“The judge basically went along with the Maverick position that it should be tried in California,” attorney Bertram Fields, who is representing the pop singer and her partners at Maverick Records, said Friday after the court hearing.
“That’s where the witnesses are, that’s where the parties are, but only if it can be done promptly.”
In a statement Friday, Warner Music officials said they were pleased with Strine’s emphasis on expediting the case.
“Regardless of where the trial ultimately is held, we are confident the court will agree that Maverick’s claims against the company are baseless and that WMG has met all of its financial and legal obligations to the joint venture.”
Warner Music, home to Madonna since she released her 1983 self-titled debut, launched the Maverick label as a joint venture with the singer in 1992. Madonna and two partners own a combined 60 percent stake in the label, whose artist roster includes Alanis Morissette and Michelle Branch. Warner owns the remaining 40 percent.
Madonna and her partners contend that Warner fell short of its commitment to help cover operating expenses for the label. The current contract between Maverick and Warner is set to expire at the end of this year, and both sides have been trying to negotiate a settlement to the dispute for months.
In March, Warner Music sued Maverick, Madonna and her label partners. The lawsuit, filed in Delaware, asked the court to affirm that Maverick’s claims are baseless. The company also asserted that Maverick’s management had racked up on its own some $66 million in losses since 1999.
The next day, Maverick countersued in Los Angeles, accusing Warner Music and Time Warner of breach of contract. The label alleged that the record company and its former parent engaged in improper accounting and management that cost the singer and her partners millions of dollars.
Maverick claims Warner violated the terms of their venture agreement by failing to pay for “guaranteed” services like radio promotion, marketing and sales meant to support Maverick artists.
The lawsuit asks the court to declare that the three partners have the right to end the joint partnership agreement and do business with other companies. Madonna and her partners also seek unspecified compensatory and punitive damages.
Source: Alex Vega/Associated Press