In re: Carl T. Mitchell, P/K/A Twista Creator’s Way Associated Labels, Inc. v. LB Entertainment
United States Bankruptcy Court for the Southern District of New York
249 B.R. 55 (2000)
- Written by Sarah Holley, JD
Facts
Creator’s Way Associated Labels, Inc. entered into an exclusive recording agreement with Carl T. Mitchell, known as Twista (Mitchell), wherein Mitchell agreed to record and deliver one album to Creator’s Way. Creator’s Way could extend the agreement for up to six consecutive periods, obligating Mitchell to record and deliver an album during each period. Mitchell agreed to record exclusively for Creator’s Way, and expressly acknowledged that his personal services were “unique and extraordinary, and the loss thereof cannot be adequately compensated in damages, and [Creator’s Way] shall be entitled to injunctive relief to enforce the provisions of this agreement.” The term of the agreement continued until Mitchell’s completion of his performance, i.e., until he recorded and delivered an album to Creator’s Way. When Mitchell later filed for bankruptcy and refused to continue his performance, Creator’s Way commenced a proceeding seeking a declaration that his exclusive-performance obligation was not discharged in bankruptcy.
Rule of Law
Issue
Holding and Reasoning (Bernstein, C.J.)
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