Barry Manilow’s 1.5 million-dollar (£1.19 million) claim for bonus payments against the owners of his music catalogue should be heard in the US, not England, the High Court has heard.
The US singer has had an agreement with Hipgnosis Songs Fund since 2020 to provide all of his “worldwide income, revenue, earnings and financial interests of every type whatsoever from any and all sources and payors”, the London court heard
Part of the agreement was a “purchase price” of 1.5 million dollars, which Hipgnosis would pay to Manilow provided the company hit two targets.
The first was that the cash income from its share of the assets increased by 10% year-on-year for three years, after which the first half of the bonus would be paid.
The second half would be paid if this target was hit for a fourth year running.
Manilow believes these thresholds have been met and has filed a claim in a court in Los Angeles seeking to claim the full 1.5 million dollars.
Hipgnosis said it has not met these targets and therefore does not need to pay out.
It is bringing legal action in England against Manilow, as well as his production and management companies, seeking confirmation of this, while claiming the singer has not paid royalties he received from Sony.
Edmund Cullen KC, for Hipgnosis, asked a judge at a hearing on Friday to refuse Manilow’s application to allow his claim to be heard in Los Angeles.
In written submissions, he said Hipgnosis is “contractually obliged” to have the case heard in England and that Manilow is “actually riding roughshod” over this requirement.
He also described the US legal action as a “tactical measure” designed to “delay and to impede the resolution of this dispute”.
In detailing the amount of cash Hipgnosis received from its share assets, Mr Cullen said the amount dropped from nearly 540,000 dollars (£427,032) in year two to zero in year four.
Andrew Sutcliffe KC, representing Manilow, told the court Hipgnosis is trying to “spike the guns” of his clients by having the claim heard in London.
He said in written submissions: “The claimant is obviously attempting to thwart and undermine entirely the defendants’ contractual right to bring that claim in the forum of their choosing in accordance with parties’ express choice of jurisdiction.”
There would be a “clear risk of irreconcilable judgments” if the full case is heard in London, Mr Sutcliffe noted.
He has asked the court to decline jurisdiction and allow Manilow’s claim over the bonus to be heard in Los Angeles.
Hipgnosis was co-founded by former Beyonce manager Merck Mercuriadis – who has since left the business – and Nile Rodgers of Chic.
In January last year, it offered up to £20 million to anyone who wanted to buy its 150-strong music catalogue of world-famous artists such as 50 Cent and Blondie, which was bought by Blackstone in July.
The hearing, before Mr Justice Marcus Smith, is expected to conclude on Friday.
