CONTRACT
Live Music Industry

In an unusual decision a US jury has awarded a damages of US$1.6 million to promoters of a cancelled Rod Stewart tour and ordered the return of a $780,000 deposit held by Mr Stewart as compensation. The Los Angeles jury found in favour of concert promoters in Peru, Argentina (including the Vina del Mar Festival) and for Oklahoma based promoters PM Group. The damages order was made against Rod Stewart’s lawyer and his then booking agency, ICM. The dispute related to a 9 date tour of South America planned for February 2002. The deposit was against a total $2.1 million fee which was cancelled in February. The tour was cancelled after disputes regarding the contract which the claimants have said contained new terms and was negotiated by Mr Stewart’s lawyers rather than ICM. New provisions included new costs for the promoters including the provision of hotels, airfares and frieght costs. However it was ICM who held the tour deposit and cancelled the dates when the balance of the outstanding tour fee and executed contract were not forthcoming. The decision will be appealed.

Source : Audience Magazine, December 2004, Issue 58