ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Tuesday, May 3, 2011

$100 Million Suit against Beyoncé Threatened

Beyonce New York Magazine here reproduces a "Summons with Notice" in which Gate Five LLC seeks to hold Beyoncé Knowles (pictured at right) and her company, Beyoncé, Inc. liable for what Gate Five calls a callous and bad faith breach of contract that put 70 people out of work before Christmas.

The parties are working out some issues before the complaint can be filed, but when it is is will allege a breach of a Services and Exclusive License Agreement into which she allegedly entered with Gate Five in June 2010.  The Agreement was to facilitate a joint venture to commercialize a video game called "Starpower: Beyoncé."  According to the summons Beyoncé'smorally reprehensible" conduct in demanding extra consideration for her participation in the venture led the project's financier to pull out on the ground that Beyoncé was "too erratic to do business with."

Gate Five claims that it lost $6.7 million invested ni the business venture, plus more than $100 million in profits that it would have earned under the agreement.  In addition to damages, Gate Five seeks to enjoin Beyoncé from associating commercially in any other video game or from using confidential information that she procured through her association with Gate Five. 

Stay tuned.  The complaint should follow shortly.


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Well, if it isn't Hollywood Fantasy v Gabor and Wood v Lucy, Lady Duff all wrapped into one.

I wonder, however, if the attorney for Gate Five LLC ever had a professor explain to him/her that there is no fault in breach of contract and when one enters into a contract they are agreeing to either perform or pay!

There are no bonus damages for a callous breach :) It reminds me of Demi Moore, "your honor, I STRENUOUSLY object."

Posted by: Jason | May 4, 2011 7:46:10 PM

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