Chance the Rapper Wins $35 Lawsuit Against Former Manager After 5-Year Battle
A jury awarded Chance the Rapper $35 in damages following a five-year legal battle with his former manager, Pat Corcoran, concluding a trial that examined the risks of operating on verbal agreements in the music industry. The verdict, delivered March 20, effectively rejects Corcoran’s claim of $3.8 million in unpaid commissions and royalties, stemming from their decade-long professional relationship.
The dispute originated after Corcoran was terminated as Chance’s manager in April 2020, shortly after the release of the artist’s debut studio album, “The Big Day.” Corcoran, operating as Pat The Manager LLC, subsequently filed suit in late 2020, alleging breach of contract related to management services provided to Chance, whose legal name is Chancelor Bennett. The lawsuit claimed a verbal agreement entitled Corcoran to commissions not only on earnings accrued during their partnership, but also for three years following its termination – through April 27, 2023.
Bennett countersued, seeking $1 million in damages, alleging that Corcoran had mishandled business deals with merchandise companies and attempted to secure kickbacks to benefit his separate management company, Haight Brand. According to Bennett’s legal team, the initial agreement between the two, established around 2012, was an oral understanding where Corcoran would receive 15% of the net profits from Bennett’s music. The lack of a formal, written contract became a central point of contention in the case.
During the trial, Bennett testified that he had consistently paid Corcoran his agreed-upon 15% share of net proceeds throughout their working relationship. He stated that the concept of a “sunset clause” – the provision for continued commission payments after termination – was never discussed. Bennett’s father, Ken Bennett, who now serves as one of his managers alongside his brother, Taylor Bennett, was present during the proceedings. Corcoran’s legal team argued that the Bennett family had undermined his position and eroded the artist’s confidence in his management.
The judge previously denied Chance’s motion for summary judgment, allowing the case to proceed to trial. Bennett’s legal team argued that the alleged verbal agreement violated Illinois’ Statute of Frauds, which requires contracts lasting longer than one year to be in writing to be enforceable.
Following the verdict, Jay Scharkey, Corcoran’s attorney, stated, “We respect the jury’s decision, but the message to music managers is clear: Get it in writing.” Chance the Rapper, speaking to the Chicago Sun-Times, declared, “I claim victory in the name of the Lord.” His lawyer, Precious Jacobs-Perry, emphasized the broader implications of the ruling, stating it was “not only a victory for Mr. Bennett, it is a victory for independent artists everywhere.”
As part of the jury’s decision, Corcoran was also ordered to relinquish control of the website domain ChanceRaps.com.