LOS ANGELES (Metallica Fans Website) -
Metallica drummer Lars Ulrich, as well as the band's law firm, was hit with a breach of contract lawsuit in Los Angeles Superior Court on Friday (May 24) by Tim Duffy, Ulrich's former partner in the now-defunct boutique label, the
Music Company.
Duffy claims he was illegally forced out of his position as managing member of the Music Company by Ulrich as well as King Holmes Paterno, & Berliner, LLP, the law firm the company initially hired to represent its own legal interests.
The suit claims Duffy and Ulrich launched a 50-50 partnership in 1996 with the Music Company, a label funded by Elektra Entertainment Group, Metallica's long-standing record label. King Holmes was also hired at the time as the label's legal counsel.
In May of 2001, Duffy claims representatives from King Holmes wrote him a letter suggesting he sell his interest in the label for $75,000 to Ulrich, who would then continue on as the label's sole owner. Duffy hired an independent counsel, who immediately rejected the offer and allegedly informed King Holmes that it could not represent Ulrich in any disputes between he and Duffy involving the Music Company, as it represented a conflict of interest.
In August, King Holmes allegedly sent a letter of dissolution to Duffy, stating it would be representing Ulrich in the termination of the Music Company partly due to Duffy's inadequate job performance. Duffy claims, however, that per the original agreement, any performance complaints must be addressed directly, followed by a 30-day period for possible improvement. Duffy claims he did not receive such notice.
The suit reads, in part, "Ulrich never gave such notice. Rather, he disregarded his obligations to his partner Duffy and, with the assistance of King Holmes, improperly took control of the business."
Duffy is suing for an amount to be determined by the court for breach of contract, breach of implied covenant of good faith and fair dealing, breach of fiduciary duty, constructive trust, accounting, constructive fraud, declaratory relief, and legal malpractice.
Incidentally, the Music Company released two albums via Elektra, Goudie's Peep Show in 2000, and Systematic's Somewhere in Between in 2001.
