Chance the Rapper scores a potentially $1.5 million judgment against “Pat the Manager” over merchandising deals and contract violations.
Chance the Rapper, whose real name is Chancelor Bennett, emerged victorious in his legal battle with his former manager, Pat Corcoran, also known as Pat the Manager, scoring a potential $1.5 million judgment based on merchandising deals—but not the heavier punitive damages. Corcoran has been ordered to surrender so-called “secret profits” and commissions he covertly collected from merch vendors without Chance’s knowledge.
The ruling puts an end to a multi-year legal feud stemming from a 2020 lawsuit over an unwritten handshake agreement, following a trial in March that rejected Corcoran’s demand for $4 million in unpaid commissions.
“Corcoran breached his duty. His merchandise company took commissions from Bennett’s own vendors on Bennett’s own orders, which is a secret profit,” wrote Judge James E. Hanlon Jr. “Corcoran was Bennett’s agent and fiduciary. He bought goods and services with Bennett’s money, dealt with vendors in Bennett’s name, and carried Bennett’s position into negotiations with people Bennett never met. In that sphere he owed loyalty and disclosure, and the rules about secret profits and conflicting interests apply.”
While the ruling did not specify exactly how much Corcoran must relinquish, representatives for Chance the Rapper said he would likely have to repay as much as $1.5 million in management fees as well as covert profits from merchandise vendors. The judge did reject Chance’s request for punitive damages, however.
“The court ruled there is no basis for Chance’s claim of more than $10 million in damages,” said a spokesperson for Corcoran. “We are pleased that the court agreed with Pat that he ‘performed years of valuable work that Bennett accepted and profited from, work that was not self-dealing.’ It is now up to Chance to prove he incurred any harm at all in the very limited areas of merchandising outlined in the order.”
The rapper countersued Corcoran for $1 million in 2021, alleging that the manager had mishandled business deals and collected kickbacks. Chance’s legal team also contended that Corcoran had received over $300,000 in excess payments prior to his termination.
Earlier this year, Chance won just $35 from Corcoran after a jury dismissed the manager’s claims that the rapper owed him $3.8 million in unpaid royalties and commissions.
