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Former band manager seeks $250M for breach of contract

There are a variety of different situations where contracts might be used to accomplish a business goal. Even rock bands use them. As is the case in any contract situation, its success varies widely. Recently a band that enjoyed some success in the 90s entered into a contract designed to help it make a comeback.  That contract did not work the way it hoped however and the band’s former manager has filed a breach of contract lawsuit against the party the contract was with. That party is the Seminole Tribe of Florida.

According to the lawsuit the former manager entered into a deal with the tribe where the tribe would provide the band with $400,000 in exchange for a variety of things including:

  • Two signed guitars
  • A performance, at a reduced rate, at an establishment owned by the tribe.
  • 60 percent of the sales and guarantees from a January to March 2013 tour
  • Rights to two albums
  • 100 percent of the sales from the band’s summer tour until the loan was repaid at which point the percentage would drop to 60 percent. Later the profits were to drop again, to 50 percent.

When the $400,000 was allegedly not given to the band, the band fired its manager who then filed the lawsuit in federal court. The man is seeking $250 million.

While the involvement of the Seminole tribe in this case presents unique issues regarding sovereign immunity, it is still a good example of how quickly a business deal can go bad. This in turn could seriously impact the viability of a business. Because of this, in most business situations it is important to have an attorney on one’s side to help protect your rights.

Source: Broward/Palm Beach New Times, “Seminole Tribe Sued Over Deal With ’90s Alt-Rockers Candlebox,” Kyle Swenson, April 9, 2014

Mon Aug 27, 1:26pm

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