Judge Dismisses Class Action Case Against Universal Over 2008 Backlot Fire

A California judge has dismissed the class-action lawsuit brought against Universal Music Group stemming from a 2008 fire in its Hollywood backlot.

The case centered around an article that appeared in The New York Times Magazine last year that alleged wrongdoings on UMG’s behalf. In the article, it was claimed that UMG had not done all that was necessary to ensure the safety of the storage facility where over 500,000 recordings, including original masters, were kept. Additionally, it was stated that UMG profited from exorbitant insurance claims, sought additional damages, and more to capitalize on the accident.

In response, five artists filed a class action suit against UMG for the company’s fault in the fire. After four of the artists—Hole, Soundgarden, Steve Earle, and the Tupac Shakur estate—dropped out between August and March, the only remaining party was Jane Petty, ex-wife of Tom Petty. Judge John Kronstadt in the Central District of California, however, dismissed five of the six causes of action against UMG. These included breach of contract, negligence, reckless conduct, and more.

“Judge Kronstadt’s decision fully dismisses the Soundgarden litigation and entirely rejects the only remaining plaintiff’s arguments,” a representative for UMG said. “As we have said all along, the New York Times Magazine articles at the root of this litigation were stunning in their overstatement and inaccuracy. As always, we remain focused on partnering with artists to release the world’s greatest music.”

What sunk the case for Petty’s estate was the fact that the singer’s original contract was with MCA, not UMG. It was because of this fact that Judge Kronstadt dismissed many of the claims in the suit, including any recovery of insurance money as a “license.” In Petty’s original contract with MCA, which was later bought out by UMG, there was no language guaranteeing that Petty would profit off of any insurance claims. Furthermore, the judge dismissed negligence claims that UMG failed to properly maintain Petty’s original master tapes, as they are technically the property of UMG and not Petty’s.

Jane Petty did earn one small victory, however inconsequential, when the judge ruled that the complaint couldn’t be “time barred.” Meaning, the complaint couldn’t be liable to the statute of limitations, as Petty only learned about the possible damages in 2019 after the Times article was published, rather than in 2008 when the fire happened.

While this ruling is a crushing blow to the artists affected by the backlot fire at Universal, it isn’t necessarily the end of the fight. Plaintiffs are still able to file a new complaint against UMG, but it would have to be on a completely different legal basis.

[H/T Rolling Stone]