Curb Records, Inc. v. Mcgraw

2012 WL 4377817 (2012)

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Nature of the Case

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Facts

In March 1997, McGraw (D) and P entered into a recording agreement under which D would render his services as a recording artist exclusively for Curb during the term of the agreement. The agreement provides for an initial period during which D was required to deliver three albums. After the initial period, D granted P six options, 'each to extend the term of this agreement for one option period commencing immediately upon the expiration of the then-current period . . . and continuing until nine (9) months after your Delivery to P of all Masters required during such option period.' During each option period, D was required to record and deliver to D 'a number of Masters sufficient for one (1) album of then customary playing time.' P had the sole discretion to further extend the time frame for Delivery up to a maximum of six (6) additional months in any single instance. P was to be the 'perpetual owner of all Masters.' P refused to accept masters in satisfaction of D's contractual obligations for the fifth option period. P filed a complaint for a declaratory judgment alleging breach of contract by D. P asserts that D recorded the masters for Emotional Traffic prior to the fifth option period. P sought injunctive relief. D counterclaimed for breach of contract, breach of implied covenant of good faith and fair dealing, and intentional interference with business relationships. P filed a motion for a preliminary injunction to prevent D from working as a recording artist for any other person or entity during the pendency of the case. The court denied P's request for injunctive relief. The Court also ruled that, except for Emotional Traffic recordings, recordings made by D as of November 30, 2011, belonged to D 'at least to the extent that he may control the release and distribution of those records.' Recordings by D made on or after December 1, 2011, belonged wholly to D or any company with which he might choose to contract. P appealed.