Insurer Must Indemnify Fat Joe in “All the Way Up” Plagiarism Lawsuit

Cartagena v. Homeland Ins. Co. of New York, No. 19-cv-6287-CM, 2019 WL 6878243 (S.D.N.Y. Dec. 16, 2019).

On December 16, 2019, Chief Judge McMahon granted summary judgment to Rapper Fat Joe against a Defendant insurance company for refusing to indemnify and defend him in a lawsuit alleging that he plagiarized his double-platinum song “All the Way Up.”

In January of 2019, Defendant issued Plaintiff a Music Professional Liability Insurance Policy covering various claims brought against Plaintiff relating to producing and publishing music, including copyright infringement, plagiarism, and misappropriation of ideas. In March of 2019, a third party filed suit against Plaintiff claiming that he authored “All the Way Up” and that Plaintiff plagiarized it. When Fat Joe submitted an insurance claim to Defendant under the policy the Defendant denied the claim, stating that the policy didn’t cover the claims alleged in the third-party suit. Defendant also stated that Fat Joe knew that the third-party would likely make a claim but misrepresented this when taking out the policy.

The court determined that the plain language of the insurance policy covered the plagiarism and misappropriation claims alleged in the third-party lawsuit. As a result, the court granted Plaintiff summary judgment on his breach of contract and declaratory relief claims. The court also dismissed Plaintiff’s count alleging breach of implied covenant of good faith and fair dealing because it was asserted prematurely. [JM]

Musicians Considered "Employees" For Tax Purposes

Matter of Columbia Artists Management LLC (Commissioner of Labor), 2013 NY Slip Op 06043 (3d Dep't Sep. 26, 2013).

A New York appellate court held that a music management company and tour promoter is liable for unemployment insurance contributions on its payments to musicians who perform on tour at the musical productions, even though the company considers the musicians "independent contractors."  Laborers/"loaders", however, are not considered employees.

Lady Gaga Insurer Seeks Declaratory Judgment

Navigators Specialty Insurance Company v. Mermaid Music LLC; Stefani Joanne Germanotta; Team Love Child; Rob Fusari Productions LLC individually and in the right of Team Love Child LLC, Index No. 108996/2010 (Sup.Ct., N.Y. Co. filed 7/8/2010)

Plaintiff seeks a declaration that it is not required to defend and indemnify the insured, Stefani Germanotta (aka "Lady Gaga") in an underlying breach of contract action, on the basis of the policy's definition of "professional services." While the underlying complaint alleges breaches of a production agreement held between Germanotta and defendant Rob Fusari, none of these causes of action assert that the insured was negligent in the performance of music production, rendering the policy inapplicable to the claim.