Recording artist Kanye West and music publisher EMI are currently embroiled in dueling lawsuits with each other regarding an alleged breach of West’s co-publishing contract with EMI. West, who filed a complaint against EMI in court in California, asserts that California law should govern the terms of the contract. He also asserts that the contract amounts to a contract for personal services that began in 2003, thus violating a California statute that limits personal services contracts to seven years or less. Conversely, EMI filed a complaint in New York, asserting that New York law governs due to the choice of law provision in the contract. EMI also asserts that West’s…
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Deceptive Conduct Likely Needed to Transform a Breach of Contract Claim to Unfair and Deceptive Trade Practice
While unfair and deceptive trade practice claims are sometimes alleged concurrently with breach of contract claims, a breach of contract alone does not constitute an unfair or deceptive trade practice. To prevail on both a breach of contract claim and an unfair and deceptive trade practice claim, North Carolina and federal courts require the breach to be accompanied by “substantial aggravating circumstances.” However, courts have provided little to no guidance on what amounts to substantial aggravating circumstances. A recent decision by the U.S. District Court for the Eastern District of North Carolina provides some insight.[1] Judge Flanagan indicated that, to be successful on both an…
