Illinois residents may be interested in a recent lawsuit filed by the rapper Snoop Dogg against the beer-maker Pabst Brewing Co. claiming breach-of-contract. He is seeking a percentage of the sales price the company obtained when it sold its Colt 45 malt beer line in November of last year. Contract disputes can be complicated, and in this one, Snoop Dogg claims to have signed an agreement with Pabst to endorse and promote one of its Colt 45 product lines for three years, starting in 2011.
Court documents show that Snoop Dogg claims that the contract stipulated that, should the Colt 45 division of the company be sold prior to 2016, he would be entitled to 10 percent of the net sale proceeds. According to the agreement, the rapper had to promote Blast by Colt 45 — a fruit flavored beer — by incorporating it into his social media posts, interviews and concerts. For this, the contract allegedly stipulated, he would receive $20,000 after every tenth time of mentioning the product.
An upfront amount of $250,000 was apparently paid to the rapper, and he asserts the contract stated that he would be paid royalties on the cases of Blast by Colt 45 that were sold. According to the lawsuit, Pabst informed Snoop Dogg that the sale of Colt 45 did not meet the stipulations of the contract that would entitle him to a share of the sales price. The matter is under investigation.
Solidly drafted contracts are of vital importance in any business deals. The services of experienced Illinois attorneys who focus on business and commercial law may provide guidance and sound legal advice related to business agreements. Legal assistance can be provided when structuring business deals that will accomplish objectives while avoiding contract disputes that can have severe financial ramifications.
Source: chicago.suntimes.com, “Snoop Dogg sues beer-maker Pabst over sale profits“, June 8, 2015