Allgood Case Partially Dismissed

Allgood Entertainment filed a $300 million lawsuit against AEG, Frank Dileo and Michael’s Estate in May 2009. Allgood states that Frank Dileo had signed a deal for Michael to perform a solo concert or a family reunion concert with them. They later found out that Michael had signed a deal for fifty concerts in London with AEG instead. Represented by Meyerowitz Jekielek, AllGood claimed breach of contract, fraud, and tortuous interference against Michael, Dileo and AEG. But Southern District of New York Judge Harold Baer found in AllGood Entertainment, Inc. v. Dileo Entertainment and Touring, Inc., 09 Civ. 5377, there were “no specific factual allegations” to support AllGood’s claim for tortuous interference, and AllGood’s factual basis for fraud was “at best thin.” In an eighteen page ruling, the judge denied AllGood’s request for an injunction and granted defense motions to dismiss the fraud and tortuous interference claims. He denied a motion to dismiss the breach of contract claim, finding there was sufficient uncertainty for it to proceed. The judge also seemed skeptical about whether AllGood even had an enforceable contract with Dileo, agreeing with defendants that the document in question was more of a letter of intent rather than a binding offer and acceptance.

AEG’s lead counsel, Kathleen Ann Jorrie of Luce of Forward, Hamilton & Scripps, said she was not surprised by the ruling. “I believe the judge is correct in his assessment, and that he did a very thorough analysis in his review of both our motion and Dileo’s. It was nice to receive it when we did, because we were in the process of preparing a summary judgment motion,” she said. AEG, she noted, is now out of the case because it is not a party to the surviving breach of contract claim.

Howard Weitzman of Kinsella, Weitzman, Iser, Kump & Aldisert, who is counsel to Michael’s estate, said he intends to file a summary judgment motion on the contract claim within the week. “From the estate’s perspective…Michael Jackson never agreed to anything, never breached any agreement, and…should not be held liable for any damages that were incurred, if they were incurred,” he said. “Based on what I know today, I don’t think any truthful fact will surface that will change my opinion that the estate does not owe AllGood anything.” Frank Dileo, according to the docket, was represented by Greenberg Traurig, but could not be reached for comment.

The plaintiffs lawyer Ira Scott Meyerowitz said; “We’ve gone forward with depositions and discovery over the last couple of months, and we’re more confident in our claims against the remaining parties.”

Meyerowitz also said that he was not ready to give up on claims against AEG. “I may consider a motion for reconsideration,” he said. “We believe there is knowledge on AEG’s side, however we don’t have the smoking gun we need. What do you do when you have a person who is dead like Michael Jackson, who can’t say he knew about the AllGood agreement and told AEG about it?”

Source: law.com & MJWN