By Rose Miami 
HangupsMusic.com – Chicago, IL – The ongoing civil trial involving Grammy-winning artist Chance the Rapper and his former manager, Pat Corcoran, has brought to light a peculiar business practice: the artist’s alleged aversion to formalizing agreements in writing. Corcoran, who is suing Chance the Rapper (born Chancellor Bennett) for over $3 million, claims that the lack of documented contracts created significant professional and financial complications, culminating in this contentious legal battle.
The central revelation from the initial week of testimony in Cook County, Illinois, is the absence of a formal, signed management contract between Corcoran and Chance the Rapper. Corcoran, operating under the moniker "Pat the Manager," contends that he is owed substantial compensation stemming from a post-termination arrangement. However, his testimony revealed a broader pattern of Chance the Rapper declining to sign written business agreements with numerous individuals integral to his professional circle.
During direct examination, Corcoran presented a list of what he described as unsigned agreements, purportedly affecting key players in Chance’s career. This roster included the rapper’s music attorney, his business manager, his booking agent, and other crucial professionals. When questioned about the rationale behind Chance’s apparent reluctance to formalize these professional relationships through signed documents, Corcoran offered a candid assessment. He suggested that this avoidance of written commitments might have been a strategic method to obscure or sidestep his obligations to his partners and associates. "Given this experience that I’m going through right now, perhaps it could be a way to obfuscate some of his commitments to his partners and to people," Corcoran testified, as reported by Music Business Worldwide.
Chance the Rapper, in his own testimony, acknowledged the absence of a written agreement with Corcoran. He confirmed that Corcoran received a 15% share of his net earnings from 2012 until his termination in 2019. Furthermore, Chance stated that Corcoran was unequivocally the highest-paid individual on the payroll of his company, Chance the Rapper LLC.
Adding another layer to the dispute, Chance testified that he was unaware of any "sunset clause" within their arrangement. A sunset clause typically stipulates that a manager continues to receive a percentage of their former client’s earnings for a specified period after their professional relationship has ended. Chance asserted that their association was characterized as an "at-will agreement" that did not address termination specifics. "We never described it as a contract until he sued me. We had an at-will agreement that didn’t address termination," he stated, according to the Chicago Sun-Times. He further elaborated that their professional dynamic had always operated this way, with discussions primarily revolving around payment, not the formal terms of departure. "We moved that way forever. We never discussed the sunset clause, we just discussed how I’d pay him," Chance added.
This trial is poised to delve deeper into the complexities of informal business dealings within the music industry, particularly concerning artists who rise to prominence rapidly. The reliance on verbal agreements and handshake deals, while sometimes fostering a sense of trust and camaraderie, can also sow the seeds of significant legal discord when expectations diverge or relationships sour. Corcoran’s lawsuit highlights the potential pitfalls of such informal arrangements, especially when substantial financial stakes are involved.
The proceedings are expected to continue this week, with further testimony likely to illuminate the specific details of the alleged post-termination agreement and the financial claims being made by Corcoran. The outcome of this case could have broader implications for how artists and their professional teams navigate contractual relationships, potentially influencing future industry standards regarding the necessity of documented agreements.
The visual aspect of the case also includes a video report from FOX 32 Chicago, offering a glimpse into the legal dispute. The trial’s continuation promises to shed more light on the intricacies of Chance the Rapper’s business dealings and the impact of his alleged preference for unwritten arrangements. As the legal arguments unfold, the music world will be watching to see how these unwritten rules are interpreted and adjudicated in a court of law.