The trial for the dissolution of The Beatles’ contractual partnership – Day 2
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KLEIN SAVED THE BEATLES FROM GOING BROKE, SAYS LAWYER
THE Beatles were rescued from almost total bankruptcy by their American manager, Allen Klein, a High Court judge was told yesterday. The finances of the group were in a dreadful situation in 1969, added Mr. Morris Finer, Q.C. It was then that Mr. Klein took as manager.
Mr. Finer Went on: “Mr Klein inherited the situation, and rightly or wrongIy took the view that the vital thing, having regard to the tolal mess and almost total bankruptcy of their affairs was to generate income as soon as possible.“
Mr. Finer is appearing for three of the Beatles, John Lennon, Ringo Starr and George Harrison, and Apple Corps Ltd. The fourth Beatle Paul McCartney is asking for a receiver to be appointed to control the group’s assets until his action to break up the Beatles is heard.
Rebelled
Last week in evidence, Paul said that he distrusted Mr. Klein. Mr. Finer said that Paul had suddenly rebelled against royalties for a solo record being paid to the group account. Mr. Finer said this would not necessarily be disadvantageous because George Harrison, whose record “My Sweet Lord” is No.1 in Britain and the United States, would earn £1,000,000 this year. Mr. David Hirst, Q.C. for Paul. said that the E.M.I. record organisation were holding payment of £488,000 to him because Apple were also claiming the money.
The case continues today.
From Daily Mirror, February 23, 1971
Beatles ‘rescued from mess’
An American manager, Allen Klein, “rescued the Beatles from almost total bankruptcy,” Mr Morris Finer, QC. said in the High Court yesterday. Mr Finer was appearing for John Lennon, George Harrison, Ringo Starr, and Apple Corps, Ltd., on the second day of Paul McCartney’s application for the appointment of a receiver of the group’s multi-million pound business affairs. The appointment is sought pending full trial of Mr McCartney’s action to dissolve the partnership. Mr Klein is not a party to the present application — expected to last all this week — but is represented by Mr A. J. Balcombe, QC, holding a “watching brief.”
Mr Finer said that Mr Klein “inherited a situation, and rightly or wrongly — and we say rightly — took the view that the vital thing from his point of view, having regard to the total mess — almost total bankruptcy — of their affairs, was to generate income.”
Mr Klein very largely left accountants to “sort out the mess,” said counsel. He considered his main job was to try to get money for the group “ to rescue them from the dreadful situation” in which he found them. And in that, said Mr Finer, “he was very successful.”
None of the Beatles was in court yesterday when Mr David Hirst, QC, for Mr McCartney, continued the opening of the case, reading evidence from accountants and correspondence.
The hearing continues today. When it was adjourned, Mr Hirst was still reading letters and other written evidence.
From The Guardian, February 23, 1971
Last updated on July 7, 2023