A California appeals court has issued a final ruling that Michael Jackson's estate can proceed with a $600 million sale of the singer's catalog to Sony Music, rejecting his mother's objections aimed at blocking the deal.
A month after the appeals court issued a preliminary injunction against Katherine Jackson, the court finalized that ruling on Wednesday – ruling that the estate's executors (John Branca and John McClain) did not violate the terms of Michael's will when they signed the giant Sony deal.
“The will gave the executors broad powers of sale, without exception for the specific assets that are the subject of this case,” the court wrote. “Therefore, [a lower judge] did not err in concluding that Michael's intention was to allow the executors to sell any assets, including those involved in the proposed transaction.”
Beyond the merits of the deal, the court also dismissed Kathryn's appeal for a simpler reason: that she had “lost” her arguments by failing to present them to a lower court.
Katherine's attorneys did not immediately return a request for comment. He can still appeal the decision to the California Supreme Court, although the chances of overturning the decision are slim.
As reported by Bulletin board earlier this year, Jackson's estate and Sony Music reached a deal that will see the music giant buy half of the singer's catalog of releases and recorded masters for more than $600 million.
But because Jackson's estate is still pending in a Los Angeles court more than 15 years after his death in 2009, his executors followed the then-confidential agreement Judge Mitchell Beckloff for approval. When they did, Katherine raised objections—among them that the sale “violated Michael's wishes” and that the inventory would likely continue to gain value over time if held.
In April 2023, Beckloff overruled these objections and ruled that the deal could go ahead. Catherine then appealed, resulting in Wednesday's decision.
In the new ruling, the court rejected a number of Katherine's key arguments, including her claim that the sale would violate basic inheritance rules because it would prevent all of Michael's assets from passing on to his heirs. In doing so, the court said Michael's will gave Branca and McClain “full power and authority” to make such deals while he has control of the estate.
“The proposed transaction is not a donation or distribution of assets — it is a sale of assets, whereby the estate receives a substantial cash payment and interest to a joint venture,” the court wrote. “While the proposed transaction will result in the estate exchanging assets for cash and other valuable rights, it does not diminish the value of the estate or impair the executors' future ability to transfer the estate's assets to the trust.”
The dispute over the Sony deal has exposed rifts among Jackson's heirs. In March, Jackson's son Blanket asked a judge to block his grandmother from using money from the estate to finance her efforts to block the Sony deal. Although both had initially objected to the sale, Blanket and Jackson's other children accepted the judge's decision allowing it to proceed.
Later that week, the estate responded to claims by Kathryn's lawyers that it needed money for the estate to pay for her legal battle, claiming it had received more than $55 million since the singer's death. The executors of the estate argued that “virtually none of Ms. Jackson's requests for her care or maintenance have been denied,” including more than $33 million in cash.
A spokesman for the estate's executors declined to comment on Wednesday's ruling.
from our partners at https://www.billboard.com/pro/michael-jackson-music-catalog-sale-fight-estate-wins-final-ruling/