Saturday, August 13, 2011

AFM and MROC Reach Settlement

The recently formed Musicians' Rights Organization of Canada (MROC) had sued AFM for $3 million in damages for breach of contract and other charges.

AFM countersued for $1 million claiming misrepresentation and breach of fiduciary duty.

President Hair's persistent negotiations and extensive talks with the principals of MROC, plus AFM's immediate countersuit, established the necessary leverage to formulate the settlement, the terms of which are being reduced to formal agreement by attorneys for both sides.

President Hair did not flinch or waiver in the face of the suit, which may have resulted in a permanent split between AFM and its Canadian members. The leaders of MROC, Len Lytwyn and Bill Skolnick, also used good judgment in setting aside their initial reluctance to compromise.

Internal protracted lawsuits are expensive, destructive and lead to organizational breakdowns devastating to all members. The settlement was a wise move for all and a solid test of President Hair's leadership.

We will have more details on the substance of the suit, which stems from a situation created by former President Tom Lee, and the details of the settlement, in the coming weeks.

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