Chance The Rapper Wins Breach of Fiduciary Duty Case Against Ex-Manager.
Chance The Rapper has won his breach-of-fiduciary-duty case against former manager Patrick “Pat” Corcoran, bringing a nearly six-year legal battle between the independent rapper and his former manager to a close. Cook County Circuit Court Judge James E. Hanlon Jr. ruled that Corcoran violated his fiduciary obligations to the artist in multiple instances. The Judge’s ruling means that Pat will ultimately have to forfeit up to the $1.5 million he was paid by Chance in management fees and merchandise-related compensation, in addition to undisclosed vendor commissions, pending the court’s final determination.
In his decision, the Judge found that Corcoran improperly received kickbacks from merchandise vendors doing business with Chance while also collecting management compensation from the artist. The Judge ordered Corcoran to return those vendor commissions and forfeit the 15% management compensation attributable to merchandising during the period in question. Corcoran and his company, Pat the Manager, LLC, were also ordered to transfer ownership of the ChanceRaps. com domain to Chance within 14 days. The Judge further found that Corcoran breached his duty of loyalty in connection with an equity request involving UnitedMasters and his duty of candor in connection with the Ramova and We Are the Times ventures.
In reaching his decision, the Judge relied on Chance’s testimony, documentary evidence and independent witnesses, while Corcoran’s defense rested on his own testimony. The Judge questioned Corcoran’s credibility, observing that his testimony “changed with the audience” and that he had “a habit of saying whatever the moment requires.”
Chance originally filed his breach-of-fiduciary-duty claim against Corcoran, alleging that his former manager violated his duties of loyalty and full disclosure. In March of this year, a jury ruled against the former manager, tossing out his $3 million dollar lawsuit and finding Corcoran in breach of contract. Now the second half of this case, addressing Corcoran’s alleged misdealings, ended in a bench trial decision also in Chance’s favor by a Cook County Judge. Among the allegations, Corcoran concealed that he had demanded and received “kickbacks” from Chance’s merchandise vendors, attempted to secure an equity interest in UnitedMasters when the deal was intended for Chance, registered ChanceRaps. com in his own name, and pursued Ramova and We Are the Times deals that were originally intended exclusively for Chance himself.
Following the ruling, Chance shared the following statement:
“I’m grateful to finally close this chapter of my life and can’t wait to eventually tell my side of the story. I’m thankful to the courts and, more importantly, to God for remaining faithful.”
