Bit Parts

Artist's Parents Get Dispute With Manager Sent to Arbitration

The U.S. District Court for the Middle District of Tennessee, Nashville Division, decided that a dispute between personal managers and the country pop artist Tegan Marie should go to arbitration. 5^th of July LLC v. Thomas, 3:19-cv-00994. The owners of the affiliated management companies 5^th of July (based in Tennessee) and Sweety High (based in California) say they obtained "a major record contract and publishing deal at the age of thirteen" for the artist. They have since sued Tegan Marie and her parents for quantum meruit and unjust enrichment. The plaintiffs claim to have advanced "$3 million in unreimbursed funds from their company" to further the artist's career, but according to the complaint, she fired them in 2019 with three years left in the management term. The plaintiffs argue that an arbitration clause in the management agreement doesn't apply to Tegan Marie's parents because the agreement was with the artist. But Chief District Judge Waverly D. Crenshaw Jr. explained: "Under Tennessee law, it has been held that, even where the arbitration agreements do[] not expressly state that non-signatories may compel arbitration, a non party can compel arbitration if 'the arbitration agreement does not limit arbitrations only to parties to the agreement.'" The chief judge added: "Similarly, under California law, '[t]hird parties may enforce a contract with an arbitration provision … where they are intended third party beneficiaries or are assigned rights under the contract."