Daryl Hall Sues John Oates Over Sale of Stake in Joint Venture, Court Temporarily Halts Transaction
ICARO Media Group
NASHVILLE, Tenn. (AP) - Daryl Hall has filed a lawsuit against his long-time music partner, John Oates, alleging that Oates' plan to sell his share of their joint venture, Whole Oats Enterprises LLP, would violate their business agreement. The legal action prompted a judge to issue a temporary restraining order, pausing the sale until ongoing legal proceedings and arbitration reach a resolution.
On November 16, a Nashville chancery court judge granted the temporary restraining order, stating that Oates and others involved in his trust cannot proceed with the sale of their stake to Primary Wave IP Investment Management LLC until an arbitrator reviews the transaction or the judge's order expires, typically within 15 days, unless extended by the court.
Chancellor Russell Perkins issued the order on the same day that Hall filed the lawsuit, which remains largely sealed, keeping most details undisclosed. However, a recent court order has allowed certain filings to be made public, although specific details about the business agreement and proposed sale remain undisclosed.
Hall's attorneys argued in favor of sealing certain filings, citing a private dispute under a confidential agreement with confidential terms, related to an ongoing arbitration process.
The lawsuit does not explicitly state the nature of what is at stake in the sale. However, Primary Wave has previously owned a "significant interest" in the song catalog of Hall & Oates for over 15 years. In a 2021 interview with Sky News, Hall expressed disappointment over the sale of his back catalog, revealing that it had been sold without his receiving any compensation. He also advised artists to retain their publishing rights as a crucial asset.
The legal complaint indicates that Hall initiated an arbitration process on November 9 against Oates, his wife Aimee Oates, and Richard Flynn, who serve as co-trustees of Oates' trust. Hall sought an order to prevent them from selling their portion of Whole Oats Enterprises to Primary Wave Music.
According to the lawsuit, Oates' team indicated that the sale could close imminently, despite the absence of an arbitrator to address the conflict.
The lawsuit also alleges that Oates' team violated a confidentiality provision by disclosing the music duo's business agreement to Primary Wave Music in a letter of intent related to the sale.
As of now, it is unclear whether the dispute revolves around the music catalog of Hall & Oates, the renowned soft-rock-and-pop duo best known for chart-topping hits such as "Private Eyes," "Rich Girl," and "Maneater."
Daryl Hall and John Oates began their musical journey as students at Temple University before signing with Atlantic Records in 1972. Over the years, they have achieved six platinum albums and numerous Top 10 singles, showcasing their unique approach to blue-eyed soul. In 2014, Hall & Oates were inducted into the Rock & Roll Hall of Fame, and their latest album, "Home for Christmas," was released in 2006. The duo continued performing as of last year.
During a 2021 interview, just before resuming a national tour that was postponed due to the COVID-19 pandemic, Oates expressed their excitement in performing their multitude of hits, emphasizing that it is not a burden since the songs are "really great."