The Latin star alleges the company withheld royalty payments and misappropriated the singer's likeness.Mexican-American singer-songwriter has filed suit against Del Records for breach of contract, breach of fiduciary duty, fraud, the misappropriation of his likeness and other charges, according to court records filed in the California Superior Court for Los Angeles County. Del Records previously acted as his record label, publisher and personal management company.Filed on Friday (April 12), the lawsuit serves as a counter-claim against Del Records and its various entities (collectively referenced as 'Del Entities' in the suit), which previously alleged Ortiz violated his recording contract with them in revenge for the company's refusal to loan him money to settle his tax debts.
Gerardo Ortiz Tickets
Del Records claimed that in addition to asking the company to pay him the loans in cash (which would have skirted tax laws), Ortiz failed to deliver on a promised sixth album. In his counter-suit, Ortiz claims Del engaged in deceitful accounting practices by withholding and concealing royalties and other payments owed to him under the terms of their recording, publishing and management agreements, thereby breaching their contracts with him.
He also alleges that by acting in multiple conflicting capacities on Ortiz's behalf as both record label/publisher and personal manager/agent, the company had an 'inherent and irreconcilable conflict of interest.' 'They purported to serve as Ortiz's talent agent, personal manager, record company/employer, and music publisher – all at the same time - but inherently cannot do so without serving two opposing masters: Ortiz and themselves,' the suit reads.
'A talent agent procures the best live performance engagements for the artist and a personal manager procures the best possible recording contract and publishing deal for the artist. A talent agent and personal manager must therefore advocate for the artist against the record company and music publisher, which benefit from deals that are less favorable to the artist. As set forth herein, Defendants did not advocate for Ortiz. Instead, they took advantage of Ortiz.' Ortiz additionally claims that, after issuing two separate written notices to Del that he was terminating his contracts with them beginning in February 2019, the company continued to book live appearances for the singer, thereby misappropriating his likeness. He claims that by booking these engagements - all the while knowing he would not appear - the company attempted to 'disappoint Ortiz's massive fan base and to tarnish Ortiz's brand.' Further, Ortiz claims that Del has refused to permit an audit into their accounting practices that could potentially turn up evidence of wrongdoing, which he also says violates the terms of their agreements.
Ortiz accuses the company of using 'incorrect royalty rates,' providing incorrect reports, utilizing 'incorrect tax computations,' ensuring that the advances the company paid him remained 'artificially unrecouped' and 'overstating and underreporting' the cost of recordings and music videos, among other claims.
Music was a big part of his family life; his father sing at family parties and gatherings. The younger Torres was deeply influenced by the music of and, and loved to sing romantic ballads and corridos. To encourage him, his father bought him his first accordion as an adolescent. A friend taught him to play the basics, but he was a quick study and went off on his own, learning to play by ear. Because of this, he developed an original, less academic style.
Collaborating with many local musicians, he quickly stood out as a singer and instrumentalist. His independently released Ao Vivo album attracted the attention of, and they signed him.