Chance the Rapper has secured a significant legal victory against his former manager, Pat Corcoran, following a tumultuous relationship marked by claims of fiduciary breach and contract interference. A recent ruling from a Chicago judge further solidifies Chance’s triumph by ordering Corcoran to forfeit over $1.5 million in compensation, concluding the last outstanding breach of fiduciary duty matter that was not decided by the jury during the earlier trial.
Artist’s Reaction
Expressing his gratitude, Chance, whose legal name is Chancelor Bennett, shared in a statement with Rolling Stone, “I’m grateful to finally close this chapter of my life and can’t wait to eventually tell my side of the story. I’m thankful to the courts and, more importantly, to God for remaining faithful.”
The Court’s Findings
Judge James E. Hanlon Jr. of the Cook County Circuit Court issued a comprehensive 28-page ruling stating that Corcoran must relinquish certain vendor-paid commissions and forfeit his 15 percent management compensation related to merchandising deals. This ruling comes after evidence was presented during the jury trial and subsequent hearings in May, noting that Corcoran earned upwards of $10 million while managing Bennett’s music, tours, and merchandise.
The judge determined that Corcoran had breached his fiduciary duty by profiting secretly off Bennett’s orders, highlighting that “Corcoran was Bennett’s agent and fiduciary.” The ruling expounded on the nature of Corcoran’s actions, asserting that he had a responsibility to act in Bennett’s best interests in all dealings with vendors and negotiations, which he failed to uphold.
Compensation Outcomes
While the judge’s ruling did not specify the exact amount Corcoran must repay, it indicates that trial exhibits would help assess the total. Bennett’s representatives estimate that Corcoran could be required to return as much as $1.5 million along with what they described as “kickbacks” from merchandise vendors.
However, the ruling also clarified limitations by rejecting Bennett’s requests for punitive damages and the forfeiture of all compensation Corcoran received. The judge noted that outside of his managerial role, Corcoran was not obligated to provide Bennett first rights on all investment opportunities he encountered. Nevertheless, the court found that Corcoran’s actions in the merchandise business demonstrated disloyalty, which led to real harm to Bennett.
Domain Name Transfer
Additionally, the judge mandated Corcoran to transfer ownership of the domain name chancraps.com back to Bennett, a domain originally registered by Corcoran in 2013. Despite Bennett’s attempts to reclaim it, Corcoran retained control even throughout the five years of legal disputes.
In response to the ruling, a spokesperson for Corcoran commented to Rolling Stone, stating, “The court ruled there is no basis for Chance’s claim of more than $10 million in damages. We are pleased that the court agreed with Pat that he ‘performed years of valuable work that Bennett accepted and profited from, work that was not self-dealing.’ It is now up to Chance to prove he incurred any harm at all in the very limited areas of merchandising outlined in the order.”
