Bit Parts

The U.S. District Court for the Northern District of Georgia, Atlanta Division, ruled that there was a genuine issue of fact as to whether music publisher Alan Walden effectively waived his company's interest in new songs written by Hugh Thomasson, a former member of the Southern rock group The Outlaws, for a Lynyrd Skynyrd album. Hustlers Inc. v. Thomasson, 1:01-CV-3026. Walden's Hustlers publishing firm filed suit after Thomasson sent a letter to Sanctuary Records, shortly before his songwriting agreement with Hustler ended, noting that Thomasson's new publisher for current and future projects was Justice Writers, formed by Thomasson and his wife. Sanctuary then began sending Thomasson's songwriter royalties to Justice Writers. Walden had stated in his deposition that he didn't claim rights in the songs written by Thomasson for the Skynyrd album “Edge of Forever.” But denying Thomasson's motion for summary judgment on Hustler's breach of contract claim, the district court noted that “there is no evidence in this case that Walden made this putative waiver with knowledge of the existence of his rights. Rather, the evidence produced suggests that Walden did not know whether he had rights in the compositions at issue when asked about them.” However, the court ruled that Thomasson was entitled to rescind his contract with Hustlers because Hustlers had stopped paying royalties to Thomasson to recoup monies redirected to Justice Writers. The district court concluded, “Although Hustlers may be entitled to equitable recoupment, this does not alter the fact that failure to pay royalties is a breach of the publishing agreement which authorizes Thomasson to rescind or terminate the agreement.”

Concert Fund Suit Proceeds