Pryor Cashman has won an important victory on behalf of its client, Capitol Records, LLC.  On December 17, 2015, the N.Y. Appellate Division dismissed a breach of contract claim brought by recording artist Shawn Mims.

Mims commenced an action against Capitol in N.Y. Supreme Court in September 2011, alleging that Capitol wrongfully deducted a 21% distribution/services fee from digital download income.  Capitol moved for summary judgment on the basis that the governing agreements unambiguously entitled it to deduct the 21% fee from all domestic revenues.  Mims opposed the motion and asserted that the prohibition against deducting digital download income, as set forth in a previous agreement with Urban Box Office, survived being superseded and replaced by the Capitol agreement. 

The Court below denied the motion, finding issues of fact.  The Appellate Division, First Department, reversed, finding the governing agreements unambiguously “did not exclude revenues [Capitol] received from digital downloads, as did the prior agreement between [Mims] and [UBO],” and dismissed Mims’ claim [emphasis added].

Donald S. Zakarin, Chair of Pryor Cashman’s Litigation Group, along with associate Andrew M. Goldsmith, represented Capitol in the litigation both in the Court below and on appeal.  

To read the entire decision, please click here.