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Ellefson v. Megadeth, Inc.

United States District Court for the Southern District of New York
2005 WL 82022 (2005)


Facts

David Ellefson (plaintiff) and David Mustaine were original members of the band Megadeth. The parties formed Megadeth, Inc. (Megadeth) (defendant) and split the band’s profits. Disagreements arose, and Ellefson sued Megadeth, claiming that he was not getting his due profits under their agreement. Mustaine sent Ellefson a proposed settlement, and the parties exchanged drafts via email. On May 14, 2004, Mustaine sent a final draft via email 15 minutes before an acceptance deadline that he had established for Ellefson. Ellefson returned a signed signature page via fax, but not until a few minutes after the deadline. On May 20, Mustaine mailed a signed copy of the contract to Ellefson. On May 24, Ellefson told Mustaine that he was withdrawing from negotiations. On June 2, Ellefson received the signed copy of the contract via mail. Mustaine claimed that a contract was formed; Ellefson argued that he withdrew from negotiations and that mail was an unreasonable medium of acceptance.

Rule of Law

Issue

Holding and Reasoning (Buchwald, J.)

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