Curb Records’ Response to 9/25/12 Ruling by the Court of Appeals in Tim McGraw Litigation

Curb Records’ Response to 9/25/12 Ruling
by the Court of Appeals in Tim McGraw Litigation

Nashville, Tenn. (September 26, 2012) – The fundamental issue in this
case is whether Tim McGraw fully performed under his contract with Curb
Records. That issue has yet to be ruled on by any court, and will be the
subject of a full trial on the merits scheduled for later this year. As
to that fundamental issue, however, the Court of Appeals in its ruling
yesterday reiterated the earlier sentiment expressed by the trial court
that Curb Records has shown some likelihood of success on its breach of
contract claims, and that Curb Records will be entitled to seek to
recover compensatory damages from Mr. McGraw at the upcoming trial.

The only legal effect of the ruling by the Court of Appeals yesterday
was to affirm the trial court’s earlier decision that one of the
remedies requested by Curb Records against Mr. McGraw, injunctive relief
(i.e., a ruling by the court preventing Mr. McGraw from recording
elsewhere until he had fully performed under his recording agreement
with Curb Records), was not appropriate under the particular facts and
circumstances of this case. We respectfully disagree with today’s ruling
by the Court of Appeals on that issue, and we intend to continue to
pursue this issue, including through the further appeals process as
appropriate, in light of the significance of the underlying principles
involved.

Those principles include our belief that contracts must be enforced as
written, and in particular that exclusive personal services agreements
with individuals, such as Mr. McGraw, who possess unique and
extraordinary talent, must be subject to enforcement by injunctive
relief. This is particularly true in the music industry, where companies
invest millions of dollars based on the enforceability of such
exclusivity provisions. As such, the principles involved are material
not just to Curb Records, but to the viability of the music industry in
Tennessee as a whole, as well as all other industries that contract with
such unique and extraordinary talents.

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