The trial for the dissolution of The Beatles’ contractual partnership – Decision

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RECEIVER NAMED FOR THE BEATLES;McCartney Victor in First Episode in Legal Contest

LONDON, March 12 — Paul McCartney today won the first round in his battle to dissolve the Beatles’ partnership when a High Court judge appointed a public receiver to manage the group’s assets.

The ruling ousts the American producer, Allen Klein, and his company, Abkco Industries, Inc., as the Beatles’ manager.

However, the appointment of the receiver and manager was stayed, or postponed, for seven days pending a possible appeal by the other Beatles, John Lennon, George Harrison, and Ringo Starr, who have opposed Mr. McCartney’s action. The lawyer for the three men said no decision had been’ made.

None of the Beatles nor Mr. Klein were in the London courtroom to hear the two‐hour judgment.

The judge, Sir Blanshard Stamp, said there had been no evidence that Mr. Klein had put or would put money from the Beatles’ partnership into his own pocket. But he said Mr. McCartney’s mistrust was justified in view of Mr. Klein’s dealings with an American company, Cameo Parkway, Inc., and his conviction Jn New York on income tax charges even though the conviction is being appealed,

London Accountant Named

Mr. McCartney had sought the appointment of a receive, to protect his interests until his suit for legal dissolution of the group is heard later this year. The court named James D. Spooner, a London accountant, to the post.

Three of the Beatles attributed the substantial increase in their income to Mr. Klein’s efforts and wanted to continue his employment, the judge said, but Mr. McCartney had never signed the document making Mr. Klein’s company the Beatles’ manager and did not consider himself bound by it.

Judge Stamp said he was satisfied that Abkco had received commissions “grossly in excess” of those specified in its appointment, but he said this had apparently been arranged in a later agreement between Mr. Klein and three of the Beatles without reference to Mr. McCartney. The judge suggested that the other Beatles might have committed ‘’a grave breach of their duties as partners.”

“I am satisfied on the accounts that the financial situation is confused, uncertain and inconclusive,” the judge said.

From The New York Times, March 13, 1971

Last updated on May 2, 2022