The Go-Go's Band Partnership Dispute

After 30 years as the bass player for the all girls band The Go-Go's, Kathy Valentine is suing her former band mates for cutting her out of her twenty percent share of earnings. The Go-Go's jumped to fame in the early 80's and continue to make money from merchandise, touring and record sales.  The five band members - Belinda Carlisle, Jane Wiedlin, Charlotte Caffey, Gina Schock and Kathy Valentine - are equal owners in Ladyhead, LLC (receives all revenues for the The Go-Go's excluding touring and owns The Go-Go's trademark) and Smith-Pocket Industries, LLC (the touring arm of The Go-Go's).

The four remaining band members notified Valentine earlier this year that she was out of the group.  The lawsuit alleges the four remaining members formed a new entity, GoGoCo Corp.,  to license all of the rights associated with the name and good will of The Go-Go's as well as touring.  If that is the case, Valentine's twenty percent share of revenues would be substantially diluted as GoGoCo Corp. would be calling the shots on when and how much money would flow to LadyHead, LLC and Smith-Pocket Industries, LLC.

It sounds like the group did things the right way years ago be forming the two initial entities where each band member was an equal owner.  I suspect the operating agreements for those entities address what happens when a band member quits on their own or is forced out.  But, maybe they don't or the language is not beneficial to Valentine, as the lawsuit never specifically discusses those sections of the LLC operating agreement. Instead, the plaintiff's complaint focuses on breach of fiduciary duty and breach of contract in not continuing to pay Valentine her one-fifth.

Sounds like the perfect case for mediation. The parties have all aired their laundry over the years and need a neutral party to help them work through a potential mine-field of separation issues.

Tamera H. Bennett

Tamera H. Bennett is a wife, mom, lawyer, mediator, blogger, podcaster, and legal writer. For two decades she’s helped clients protect what they create by practicing trademark, copyright and entertainment law in Texas and Tennessee.

Tamera has co-hosted more than 85 episodes of the Entertainment Law Update Podcast since 2009. And, she’s been honored to write for BILLBOARD magazine and the TEXAS LAWYER.

In the summer of 2015, Tamera backpacked 100 miles over 10 days with her son's Boy Scout Troop. Tamera walked her first half-marathon in 2012 and walked the Cowtown Half Marathon in February 2016 and February 2017 with a PR each time. You can visit Tamera’s blog at createprotect.com and follow her on Twitter @tamerabennett.

http://www.tbennettlaw.com
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