By Rose Miami 
HangupsMusic.com – Chicago, IL – A high-stakes legal battle is currently unfolding in Cook County, Illinois, pitting Grammy Award-winning artist Chance the Rapper against his former manager, Patrick Corcoran. The trial, which commenced recently, centers on a contentious contract dispute with Corcoran seeking a substantial sum of $3 million, alleging a breach of an oral agreement that included a lucrative post-employment clause.
The crux of the legal contention lies in the interpretation of an alleged handshake deal struck between the two parties around 2020. Corcoran, who managed Chance the Rapper, born Chancelor Johnathan Bennett, from 2012 to 2019, claims the agreement stipulated a 15% commission on all net proceeds generated by the artist’s income streams. Crucially, Corcoran asserts this deal included a "sunset clause," a provision that would guarantee him continued payment for three years following his termination.
On Tuesday, March 10th, Chance the Rapper took the stand to present his account of the professional relationship and the terms of their arrangement. His testimony directly contradicted key elements of Corcoran’s complaint. The artist vehemently denied any knowledge or acknowledgment of a formal sunset clause being part of their agreement. Instead, Chance characterized their professional relationship as an "at-will" arrangement, one that was never formally documented as a contract until legal action was initiated.
"We never described it as a contract until he sued me," Chance testified, as reported by the Chicago Sun-Times. He elaborated that their discussions about compensation were focused on his ongoing payments to Corcoran, rather than a definitive contractual obligation with a set termination period. "We had an at-will agreement that didn’t address termination," he stated, emphasizing that their operational dynamic had always been fluid and lacked the rigid structure of a formal contract.
Chance further asserted that the consistent payment of 15% of his net proceeds to Corcoran was maintained throughout their working relationship, even after Corcoran’s departure. "We moved that way forever. We never discussed the sunset clause, we just discussed how I’d pay him," he explained. "And one thing that stayed consistent is that I paid him his 15% [in net proceeds]. I kept paying him that 15%." The artist underscored his commitment to fulfilling his perceived obligations, stating, "I can’t think of one situation where he did meaningful work and I didn’t pay him."
During his testimony, Chance revealed the significant financial scale of their collaboration. He estimated that he paid Corcoran a total of $11 million during their nearly decade-long professional partnership. Furthermore, Chance identified Corcoran as the highest-paid individual on the payroll of his company, Chance the Rapper LLC, highlighting the extent of the former manager’s financial involvement.
Corcoran’s lawsuit, filed in 2020, outlines his perspective on the termination of his services. He alleges that his dismissal in 2019 was a direct consequence of perceived "fan disappointment" surrounding Chance the Rapper’s 2019 album, The Big Day, and the subsequent underperformance of its accompanying tour. Following his termination, Corcoran was replaced by Chance’s father, Ken Bennett, and his brother, Taylor Bennett. Despite this transition, Corcoran contends that Chance failed to adhere to their alleged post-employment agreement, leading to his current pursuit of $3.8 million in unpaid commissions. He is also seeking exemplary damages for breach of their agreement and alleged violations of the Illinois Sales Representative Act.
In response to Corcoran’s lawsuit, Chance the Rapper initiated a countersuit in 2021. This legal maneuver sought more than $1 million in damages, with Chance accusing Corcoran of dereliction of managerial duties. Allegations in the countersuit include claims of disloyalty and prioritizing personal interests over the artist’s career, resulting in detrimental business decisions. This countersuit has yet to proceed to trial.
The ongoing civil trial between Chance the Rapper and Patrick Corcoran is anticipated to continue for approximately two weeks, with both parties presenting their evidence and arguments in an effort to sway the court. The outcome of this case could set a significant precedent regarding the enforceability of oral agreements and handshake deals within the music industry, particularly concerning long-term professional relationships and post-termination compensation. The intricate details of their business dealings and the differing interpretations of their verbal accord will be scrutinized as the trial progresses.