Even well-known celebrities with major Las Vegas shows can run into serious problems with their contracts. In one case, Mexican-American performer Gerardo Ortiz filed a lawsuit against Del Records, his previous record label. The singer says that the company breached its contract with him, misappropriated his likeness and committed fraud when it was responsible for publishing his material and serving as his personal representative. The suit came as a counter-claim to another complaint filed by Del Records against Ortiz.
The record label said that the performer violated his contract with them after the company refused to provide him with a personal loan to address outstanding tax debt. It said that Ortiz was required to provide them with a sixth album but refused to do so. On the other hand, Ortiz said that the company had an inherent conflict of interest when it acted as both his record label and his agent, to his own detriment. Because a talent agent is supposed to help an artist obtain a better deal from a record label, the label itself cannot serve as an agent, Ortiz’ complaint alleges. He also said that the company failed to pay him royalties and other payments he was owed.
The Latin star also said that he notified Del Records twice in writing that he was ending his contract with the company. Nevertheless, he alleges that the label continued to schedule live appearances and concerts, knowing that Ortiz would not be present to perform. He accused the company of attempting to tarnish his reputation with these false bookings.
Music industry contracts can be lucrative and also complicated. It is important for people on both sides to truly understand the agreements they are making. A business law attorney may help people and companies negotiate fair contracts and address any contract disputes over existing agreements.