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SOUTHEAST TEXAS RECORD

Saturday, April 27, 2024

Making Chancery Court Dreams Come True

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From Texans for Lawsuit Reform

Ah, celebrities—they’re just like us. At least when it comes to squabbles between business partners.

The latest example involves legendary yacht-rock duo Hall and Oates. According to reports, Daryl Hall sued over business and musical partner John Oates’ plan to sell his side of a joint venture, saying it violated their business agreement. 

Hall says he learned of Oates’ plan to sell his shares… just days before Hall was scheduled to embark on an international tour.

“I was blindsided by this information,” Hall wrote.

If the sale had went through, Hall says he would’ve been “forced to partner with an entity that I did not agree to partner with, and whose business model does not comport with my views,” writing that “there is no amount of money that could compensate him” for that.

A judge issued a temporary injunction blocking the sale until a private arbitrator has a chance to weigh in.

You may be asking yourself why TLR would take an interest in what seems to be an out-of-state, music industry-insider lawsuit.

The answer is because the case was filed in the Davidson County Chancery Court in Nashville.

While the music industry may seem like a complicated world of royalties, song catalogues and high-rolling personalities, the issue between Hall and Oates amounts to nothing more than a run-of-the-mill breach of contract dispute. The same type of business contract dispute that is handled by various chancery or specialized business courts around the country.

We at TLR aren’t fans of unnecessary or abusive litigation, but we understand that, sometimes, there are legitimate disputes that need to be sorted out by the legal system. That’s why it’s critical that our courts function fairly and efficiently, and have the expertise necessary to quickly resolve issues that arise so the parties aren’t left languishing in litigation.

It’s also why we strongly advocated for the creation of a specialized business court to handle complex commercial litigation—including contract disputes like this. Texas’ business court will allow complex commercial litigation to be filed outside our courts of general jurisdiction, and handled by judges with specific expertise in this type of litigation. 

While there are certain jurisdictional differences between the Nashville Chancery Court and the specialized business court created by the Texas Legislature in 2023, there are some similarities. Both courts are authorized to handle contract disputes and commercial litigation. If the Hall and Oates lawsuit had been filed in Texas, it could have fallen under the new business court’s jurisdiction.

The show must go on, and hopefully—under the jurisdiction of this chancery court—with a quick and fair resolution to this dispute.

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