Judge Dismisses Most Claims over 'Final' Jackson Tour

A federal judge in Manhattan said “Beat It” to most counts in a $300 million suit filed against Michael Jackson's estate, Jackson's ex-manager, Frank Dileo, and Anschutz Entertainment Group (AEG) over promotional rights to the comeback tour the King of Pop was planning prior to his death last summer.

The plaintiff, AllGood Entertainment Inc., alleged in a May 2009 complaint (filed a month before Jackson died) that Jackson, through Dileo, had signed a deal to perform either a solo concert tour or a Jackson Family reunion concert to be promoted by AllGood. But months after striking its deal with Dileo, AllGood alleged, AllGood found out that Jackson had agreed to work with AEG on the This Is It series of shows scheduled to begin in London in the fall of 2009. AllGood claimed breach of contract, fraud and tortious interference against Jackson, Dileo and AEG.

But Southern District of New York Judge Harold Baer found in AllGood Entertainment Inc. v. Dileo Entertainment and Touring Inc., 09 Civ. 5377, that there were “no specific factual allegations” to support AllGood's claim for tortious interference and that AllGood's factual basis for fraud was “at best thin.” The district judge denied AllGood's request for an injunction, and granted defense motions to dismiss the fraud and tortious interference claims. However, he denied a motion to dismiss the breach of contract claim, finding there was sufficient uncertainty for it to proceed. But Judge Baer seemed skeptical about whether AllGood even had an enforceable contract with Dileo, agreeing with defendants that the document in question was more of a letter of intent, rather than a binding offer and acceptance.

AEG's lead counsel, Kathleen Ann Jorrie of Luce, Forward, Hamilton & Scripps, told us that AEG is now out of the case because it is not a party to the surviving breach-of- contract claim. Howard Weitzman of Kinsella, Weitzman, Iser, Kump & Aldisert, who is counsel to Jackson's estate, says he intends to file a summary judgment motion on the contract claim. (Frank Dileo, according to the docket, was represented by Greenberg Traurig. He could not be reached for comment.)

Plaintiffs' lawyers Ira Scot Meyerowitz and Jon Damon Jekielek of Meyerowitz Jekielek said: “We've gone forward with depositions and discovery over the last couple of months, and we're more confident in our claims against the remaining parties.”

Meyerowitz says he is not ready to give up on claims against AEG. “I may consider a motion for reconsideration. We believe there is knowledge on AEG's side; however, we don't have the smoking gun we need. What do you do when you have a person who is dead like Michael Jackson, who can't say he knew about the AllGood agreement and told AEG about it?”

A federal judge in Manhattan said “Beat It” to most counts in a $300 million suit filed against Michael Jackson's estate, Jackson's ex-manager, Frank Dileo, and Anschutz Entertainment Group (AEG) over promotional rights to the comeback tour the King of Pop was planning prior to his death last summer.

The plaintiff, AllGood Entertainment Inc., alleged in a May 2009 complaint (filed a month before Jackson died) that Jackson, through Dileo, had signed a deal to perform either a solo concert tour or a Jackson Family reunion concert to be promoted by AllGood. But months after striking its deal with Dileo, AllGood alleged, AllGood found out that Jackson had agreed to work with AEG on the This Is It series of shows scheduled to begin in London in the fall of 2009. AllGood claimed breach of contract, fraud and tortious interference against Jackson, Dileo and AEG.

But Southern District of New York Judge Harold Baer found in AllGood Entertainment Inc. v. Dileo Entertainment and Touring Inc., 09 Civ. 5377, that there were “no specific factual allegations” to support AllGood's claim for tortious interference and that AllGood's factual basis for fraud was “at best thin.” The district judge denied AllGood's request for an injunction, and granted defense motions to dismiss the fraud and tortious interference claims. However, he denied a motion to dismiss the breach of contract claim, finding there was sufficient uncertainty for it to proceed. But Judge Baer seemed skeptical about whether AllGood even had an enforceable contract with Dileo, agreeing with defendants that the document in question was more of a letter of intent, rather than a binding offer and acceptance.

AEG's lead counsel, Kathleen Ann Jorrie of Luce, Forward, Hamilton & Scripps, told us that AEG is now out of the case because it is not a party to the surviving breach-of- contract claim. Howard Weitzman of Kinsella, Weitzman, Iser, Kump & Aldisert, who is counsel to Jackson's estate, says he intends to file a summary judgment motion on the contract claim. (Frank Dileo, according to the docket, was represented by Greenberg Traurig. He could not be reached for comment.)

Plaintiffs' lawyers Ira Scot Meyerowitz and Jon Damon Jekielek of Meyerowitz Jekielek said: “We've gone forward with depositions and discovery over the last couple of months, and we're more confident in our claims against the remaining parties.”

Meyerowitz says he is not ready to give up on claims against AEG. “I may consider a motion for reconsideration. We believe there is knowledge on AEG's side; however, we don't have the smoking gun we need. What do you do when you have a person who is dead like Michael Jackson, who can't say he knew about the AllGood agreement and told AEG about it?”