Musicians trying to make their mark on the entertainment industry are seemingly everywhere in New York City. Often, these entertainers will enter into management contracts before their popularity truly takes off. Generally, if the entertainer achieves success and later fails to honor the terms of its original contract, he or she could be liable for breach of contract in New York. A recent lawsuit filed against the popular musical group LMFAO serves as a warning to other musicians that breach a contract could result in a lawsuit.

Stefan “Redfoo” Gordy and Skyler “SkyBlu” Gordy, two members of the pop group LMFAO, were served with a lawsuit on Thursday, April 19. Former managers RPM GRP filed the action, claiming:

• breach of contract;
• tortious interference; and
• accounting irregularities.

The company filed its lawsuit in California’s Santa Monica Superior Court. 

In the suit, RPM alleges that LMFAO signed a management contract with RPM’s Rene McLean in 2008. Under the terms of the contract, Mr. McLean’s commission was to gradually phase out over the next five years. RPM further alleges that the pop group later fired its manager after achieving substantial success and recognition in the industry. The group is best known for their hit songs “Party Rock Anthem” and “Sexy and I Know It.”

Additionally, RPM asserts in its lawsuit that LMFAO induced two RPM GRP employees to breach their employment contracts with the company and work for them instead, paying them on a salary rather than paying the agreed-upon commission to the original manager. The two employees, who are not named as defendants in the lawsuit, are Ian Fletcher and Nate Johnson.

RPM lists March 2008 to July 2011 as the dates of its representation of the musical group. RPM is seeking $7 million in damages.

If you are the subject of a breach of contract lawsuit, it is vital that you seek the guidance of a New York business litigation attorney. Contact a New York breach of contract lawyer today at (888) 497-3410 for a consultation.