Legal Update: Neal Backing Out Of Deal
Posted: Wed Aug 28, 2024 10:42 amAfter dishonestly tweeting "I'm so glad that Jon now agrees with me" regarding appointing a neutral third party (fact check: Jon proposed the idea), Neal is now apparently backing out of the deal.
So tiring.
https://news.bloomberglaw.com/litigatio ... dmate-says
https://www.bloomberglaw.com/public/des ... 10VO9GJSO8
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Journey Founder Backtracking on Deal to End Feud, Bandmate Says
Mike Leonard - Bloomberg Legal Reporter
Journey guitarist Neal Schon is backtracking on a legal agreement he reached with keyboardist Jonathan Cain to end their bitter public feud over the iconic rock group’s direction, Cain said in a court filing.
Schon is proposing to limit the authority of a tiebreaking third director the bandmates agreed to appoint to the entity that manages their touring-related assets, according to a letter Cain sent to the judge presiding over their court fight. The deal, reached through mediation, wasn’t previously made public.
Monday’s filing came about a month after Cain submitted a court petition saying Schon’s extravagant spending was sowing toxic divisions within the band, a Rock and Roll Hall of Fame inductee best known for its 1981 hit “Don’t Stop Believin.’” Schon is the last remaining co-founder of Journey, which Cain joined in 1980. The group is currently on the US leg of a 50th anniversary tour with Def Leppard.
“The band’s actual onstage performance is, at the moment, one of the only aspects of the business that has not suffered,” according to the lawsuit filed July 24 in Delaware’s Chancery Court.
The suit, made public July 30, said Schon repeatedly blew past a $1,500-per-night hotel fee cap, maxed out an American Express card with a $1 million limit, unilaterally chartered private jets, hired a close friend as unnecessary extra security, and blocked efforts to pay the band’s debts. The court battle is the second between Cain and Schon involving the AmEx card.
The petition also blamed the internal tensions partly on Schon’s wife, the former Michaele Salahi, a model who shot to notoriety in 2009 for breaching security to crash a White House state dinner with her then-husband. The onetime Real Housewives of DC cast member, now known as Michaele Ann Schon, isn’t named as a respondent.
Vice Chancellor J. Travis Laster fast-tracked the case at an Aug. 7 hearing, then issued an order the following day appointing Joseph R. Slights III, a former Delaware judge, to mediate the dispute.
Schon called Cain’s claims “slanderous” in an Aug. 22 Facebook post, saying he would “take the high road.” The post also said Schon was “pleased that we’re going to bring in someone impartial” to help resolve the dispute.
Cain’s letter Monday indicated they had reached a tentative agreement the day of the Facebook post on a court-appointed custodian to serve as a tiebreaking third member of Freedom 2020 Inc.'s two-seat board. But they can’t finalize a deal because Schon “is now seeking to inappropriately limit the role of the custodian,” Cain said.
The filing asked Laster to approve the version of the agreement submitted by Cain.
He’s represented by Fox Rothschild LLP. Schon is represented by Prickett, Jones & Elliott PA and Seward & Kissel LLP.
The case is Cain v. Schon, Del. Ch., No. 2024-0791, letter filed 8/26/24.
So tiring.
https://news.bloomberglaw.com/litigatio ... dmate-says
https://www.bloomberglaw.com/public/des ... 10VO9GJSO8
_______________________________________________________
Journey Founder Backtracking on Deal to End Feud, Bandmate Says
Mike Leonard - Bloomberg Legal Reporter
Journey guitarist Neal Schon is backtracking on a legal agreement he reached with keyboardist Jonathan Cain to end their bitter public feud over the iconic rock group’s direction, Cain said in a court filing.
Schon is proposing to limit the authority of a tiebreaking third director the bandmates agreed to appoint to the entity that manages their touring-related assets, according to a letter Cain sent to the judge presiding over their court fight. The deal, reached through mediation, wasn’t previously made public.
Monday’s filing came about a month after Cain submitted a court petition saying Schon’s extravagant spending was sowing toxic divisions within the band, a Rock and Roll Hall of Fame inductee best known for its 1981 hit “Don’t Stop Believin.’” Schon is the last remaining co-founder of Journey, which Cain joined in 1980. The group is currently on the US leg of a 50th anniversary tour with Def Leppard.
“The band’s actual onstage performance is, at the moment, one of the only aspects of the business that has not suffered,” according to the lawsuit filed July 24 in Delaware’s Chancery Court.
The suit, made public July 30, said Schon repeatedly blew past a $1,500-per-night hotel fee cap, maxed out an American Express card with a $1 million limit, unilaterally chartered private jets, hired a close friend as unnecessary extra security, and blocked efforts to pay the band’s debts. The court battle is the second between Cain and Schon involving the AmEx card.
The petition also blamed the internal tensions partly on Schon’s wife, the former Michaele Salahi, a model who shot to notoriety in 2009 for breaching security to crash a White House state dinner with her then-husband. The onetime Real Housewives of DC cast member, now known as Michaele Ann Schon, isn’t named as a respondent.
Vice Chancellor J. Travis Laster fast-tracked the case at an Aug. 7 hearing, then issued an order the following day appointing Joseph R. Slights III, a former Delaware judge, to mediate the dispute.
Schon called Cain’s claims “slanderous” in an Aug. 22 Facebook post, saying he would “take the high road.” The post also said Schon was “pleased that we’re going to bring in someone impartial” to help resolve the dispute.
Cain’s letter Monday indicated they had reached a tentative agreement the day of the Facebook post on a court-appointed custodian to serve as a tiebreaking third member of Freedom 2020 Inc.'s two-seat board. But they can’t finalize a deal because Schon “is now seeking to inappropriately limit the role of the custodian,” Cain said.
The filing asked Laster to approve the version of the agreement submitted by Cain.
He’s represented by Fox Rothschild LLP. Schon is represented by Prickett, Jones & Elliott PA and Seward & Kissel LLP.
The case is Cain v. Schon, Del. Ch., No. 2024-0791, letter filed 8/26/24.
