King Of Pop’s Legal Troubles Live On

Entertainment lawyer offers ideas to preserve legacy

CT Law Tribune: July 28, 2009

By JAMES L. WALKER Jr.

A few weeks ago the world mourned the loss of pop icon Michael Jackson.

Jackson left a substantial music catalogue and a substantial number of legal battles.

According to his 2002 will, Jackson was worth more than $500 million. In death, I would estimate that the catalogue value explodes to nearly $2 billion with the increased demand. However, as an entertainment lawyer, I can tell you that where there is money, a legal battle will follow.

Recently, a Los Angeles Superior Court judge ruled that Jackson’s close associates, John Branca and John McClain, are the temporary administrators until Aug. 3. Before the ruling, Michael’s mother, Katherine Jackson, controlled his assets. She argued that Branca was out of Jackson’s life this past year. But, Branca told the court that Jackson rehired him before the King of Pop died.

Although, unseen publicly, it has been widely reported that the trust gives 40 percent to Katherine Jackson, 40 percent to Michael Jackson’s three children and 20 percent to charities.

But what happens to the lawsuits?

“We have discussed them all and our litigation team will deal with all of the lawsuits,” said Attorney Joel Katz of Greenberg Traurig, whose firm has been retained by the Jackson estate, along with attorney Howard Weitzman.

Jackson’s ex-wife, Debbie Rowe, may challenge Jackson’s will. Rowe and Jackson divorced in 1999 and she terminated her parental rights and gave up full custody.

A few years later, she asked a judge to reverse that decision. Since then, Rowe has been granted visitation rights. Rowe initially stated that she would seek to gain full custody of her children, and challenge Jackson’s will. However, Jackson’s will explicitly states that Katherine Jackson is the absolute guardian of his children, and he spells out that nothing should pass to Rowe.

Rowe’s lawyer said his client is still weighing her options. “Debbie Rowe has not reached a final decision concerning the custody proceedings,” attorney Eric M. George told reporters earlier this month.

Prior to Jackson’s death, there were a number of lawsuits nationwide.

One suit involves Jackson and his former manager, Raymone K. Bain. Bain sued Jackson for breach of contract and claimed she was not compensated for deals valued at $44 million, including the lucrative overseas AEG tour and the re-release of the top-selling “Thriller” commemorative album.

Another pending suit involves AllGood Entertainment Inc. against Jackson, Frank Dileo, and AEG. Dileo, Jackson’s personal manager, brokered the reportedly $400 million deal with AEG, a rival promoter. AllGood sued Jackson and the defendants for breach of contract, and interference with a contract to the tune of $20 million.

AllGood argued that it holds the exclusive right to Jackson’s tour and that Jackson was prohibited from doing any concerts with AEG or others during 2009.

Jackson has not only been a defendant in numerous cases, but in some cases he sued folks.

Jackson sued Julien’s Auction House to stop the company from selling more than 2,000 of his personal items.

Attorney Jerry Hawxhurst , who represented Julien’s, said the parties settled and agreed to a joint exhibition and sale. After the exhibition, his clients received conflicting instructions on who to pay the proceeds to on Jackson’s behalf.

Jackson’s former business manager, Tohme Tohme, cut this deal with the auction house. However, later lawyers for Jackson instructed Hawxhurst’s client not to release any funds to Tohme. So, yet another dispute broke out. As a result, Hawxhurst filed an interpleader action that he hopes will result in a court telling his clients who should receive the proceeds from the exhibition and sale.

Both sides were threatening to sue Julien’s Auction House if funds were released to the other, according to Hawxhurst. He said that while he is working with the estate lawyers, “We allowed it to cool down because of the death as I am sure the Jackson estate has bigger fish to fry.”

Estate attorney Weitzman said that the litigation strategy for the Michael Jackson estate will be “to look at each case on an individual basis and get them resolved in the best interests of the estate. We would settle where appropriate, and if there is no liability continue down the path that best serves the estate, be it at trial, arbitration, mediation or a settlement for some nuisance value.”

In the face of all the lawsuits, there are a few things the Jackson family should consider to avoid more suits and confusion:

Family Spokesperson: Instead of every family member speaking or appearing to exploit the tragedy, delegate one spokesperson.

Michael Jackson Celebration Week: Establish a week-long celebration kicking off on August 29th (MJ’s birthday) and ending Labor Day weekend.

European Tour: Consider a European reunion tour (and possible domestic tour) featuring the Jackson Five/Jackson Family. Possibly invite Usher, an artist who is very successful and admittedly incredibly influenced by Michael Jackson, out on certain dates to fill in for Michael Jackson. Also, use video and technology to “beam” MJ in for various shows.

Sony Partnership: Partner with Michael Jackson’s record label to release “best of” commemorative CD with original music and interviews.

BET/MTV: Announce a Jackson Family Special on BET. Also, as MTV initially refused to air videos by black artists, this would be a wonderful time to meet with officials of that network and announce a partnership and TV special.

AEG Pay-Per-View: AEG, the concert promoter should announce that the final Michael Jackson concert will air on pay-per-view, with the proceeds to benefit a charity. It should be shown for free to children in hospitals and group homes.

Scholarship Fund: Immediately announce a $50 million pledge from Jackson’s estate towards the establishment of a fund for “Young Michael Jackson Scholars” at colleges nationwide, particular for struggling historically black colleges and universities.

The Jackson Family, An American Story: Do a multi-media deal with Time Warner for books, audio, digital and print for an autobiographical book on the family, the legacy, etc.

Neverland Ranch & Gary, Ind., Museum: Establish a museum at Neverland Ranch and in Jackson’s birthplace of Gary, Indiana with the proceeds from these business ventures going to The Michael Jackson Foundation and various charities.