UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF ILLINOIS 

EASTERN DIVISION 

THE ESTATE OF CHARLES STEPNEY, ) 

EIBUR MUSIC, INC., as Trustee ) 

THE STEPNEY LEGACY TRUST ) 

 ) 

 Plaintiffs, ) 

 ) 

 v. ) Cause No.: 

 ) 

SONY MUSIC HOLDINGS, INC., and ) JURY TRIAL DEMANDED

 a Delaware Corporation, ) 

 ) 

MAURICE WHITE, ) 

 an individual, ) 

 ) 

 Defendants. ) 

COMPLAINT

 Plaintiffs The Estate of Charles Stepney and Eiber Music, Inc., as Trustee for The 

Stepney Legacy Trust (collectively “Plaintiffs”), by and through their attorneys, Kayira LLP, for 

their Complaint against Defendants Sony Music Entertainment and Maurice White, respectfully 

state as follows: 

PARTIES 

1. Plaintiff Estate of Charles Stepney (hereinafter the “Estate” or “Plaintiff”) is the 

estate of the deceased producer, artist and songwriter Charles Stepney (hereinafter, “Mr. 

Stepney), and is an estate formed under the laws of the State of Illinois. 

2. Plaintiff Eibur Music (hereinafter the “Trustee” or “Plaintiff”) is the trustee of the 

Stepney Legacy Trust, a revocable trust of property. 

3. Defendant Maurice White (hereinafter “M. White”) is an individual domiciled in 

Los Angeles, California. Defendant M. White is engaged, and at all relevant times has been 

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engaged, in the entertainment industry as a recording artist, performer, producer, and songwriter 

for the popular recording and performance group Earth, Wind & Fire (as hereinafter described, 

“EWF”). 

4. Defendant Sony Music Holdings, Inc. (hereinafter “Sony”), formerly named Sony 

Music Entertainment Inc., is a Delaware corporation registered to do business in the State of 

Illinois and with a principal place of business in New York City, New York. Defendant Sony 

currently owns and operates Columbia Records. Defendant Sony is a record company that claims 

an interest in one or more Recordings (as hereinafter defined), and/or has exercised rights of an 

owner of one or more Recordings, and/or is a necessary party for the accounting relief requested 

herein. 

JURISDICTION AND VENUE

5. This Court has original jurisdiction based upon diversity of the parties, as 

provided in 28 U.S.C. § 1332(a). Plaintiff Estate is an estate formed under the laws of the State 

of Illinois. Plaintiff Eibur Music is the named Trustee for The Stepney Legacy Trust, formed 

under the laws of the State of Illinois. Defendant M. White is an individual residing in 

California. Defendant Sony is a Delaware corporation with a principal place of business in New 

York City, New York. The matter in controversy exceeds seventy-five thousand dollars 

($75,000.00). 

6. This Court has personal jurisdiction over the Defendants pursuant to 735 ILCS 

5/2-209. Defendants have substantial contacts with the State of Illinois and regularly solicit 

business in this district and/or derive substantial revenue from sales of goods in this district 

and/or otherwise have engaged in a persistent course of conduct in this district. Additionally, 

Plaintiffs’ causes of action arise from Defendants’ transaction of business in this state, the 

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making and performance of a contract in this state, and Defendants have caused tortious injury in 

this judicial district by acts both within and outside this district. 

7. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(a)(2) which states, in 

pertinent part, “[a] civil action wherein jurisdiction is founded only on diversity of citizenship 

may, except as otherwise provided by law, be brought only in...(2) a judicial district in which a 

substantial part of the events or omissions giving rise to the claim occurred, or a substantial part 

of the property that is subject to the action is situated. 

FACTUAL ALLEGATIONS

8. Prior to forming EWF, Defendant M. White was a session drummer for the Chess 

Records record label located in Chicago, Illinois. Beginning in 1967 and ending in 1969, M. 

White played steadily with the musical recording group The Ramsey Lewis Trio. 

9. On or around March 1968, Mr. Stepney entered into a producer agreement with 

Chess Records (“Chess Producer Agreement”), whereby Mr. Stepney would render his services 

as a record producer exclusively for Chess Records. See Chess Producer Agreement, marked as 

Exhibit 1, attached hereto and incorporated herein by reference. Upon information and belief, 

the Chess Producer Agreement is consistent with and reflects the then current industry standards, 

customs, and practices with respect to the subject matter of the Chess Producer Agreement. 

10. Pursuant to the Chess Producer Agreement, Mr. Stepney produced a volume of 

recordings exclusively for Chess Records and its designees, including, but not limited to, 

recordings for The Ramsey Lewis Trio. 

11. At or around this time, Defendant M. White and Mr. Stepney formed a strong 

personal and professional relationship. 

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12. In 1969, Defendant M. White left The Ramsey Lewis Trio and joined two friends 

to form a songwriting team. After a short period, the songwriting team signed a recording 

contract with the record label Warner Bros., and adopted to name Earth, Wind and Fire (“Earth 

No. 1”). 

13. Upon information and belief, Warner Bros. agreed to reproduce, distribute, and/or 

otherwise commercially exploit records by Earth No. 1 and administer the distribution of 

revenues generated thereby. 

14. At or around this time, Earth No. 1 began recruiting new members. Between 1970 

and 1972, Earth No. 1 recorded two albums for Warner Bros. 

15. Sometime in 1972, Defendant M. White dissolved Earth No. 1. He recruited new 

members to form a second line-up for the recording group Earth, Wind and Fire (“EWF”). Upon 

information and belief, EWF succeeded Earth No. 1 in interest to the recording contract with 

Warner Bros. 

16. At or around this time, the record label Columbia Records purchased EWF’s 

recording contract from Warner Bros, thereby assuming the obligations of Warner Bros. under 

the recording contract with EWF. 

17. Sometime before 1974, Defendant M. White solicited the talents of Mr. Stepney 

as a producer for EWF. At this time, Mr. Stepney was domiciled in Chicago, Illinois. Upon 

information and belief, a significant and substantial portion of the negotiations between Mr. 

Stepney and Defendant M. White occurred in Chicago, Illinois. 

18. Upon information and belief, Mr. Stepney and Defendant M. White orally agreed 

that Mr. Stepney would be compensated for his services as a producer according to the then 

current industry standards and customs, including, but not limited to, the provision of producer 

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19. Upon information and belief, and consistent with the terms of the Oral 

Agreement, Mr. Stepney and Defendant M. White expressly acknowledged and agreed that 

Columbia Records and/or its designee(s) would reproduce, distribute, and/or otherwise 

commercially exploit the sound recordings that were produced or co-produced by Mr. Stepney 

pursuant to the Oral Agreement, and along with Defendant M. White, would also administer the 

distribution of revenues generated thereby, including but not limited to producer royalties due 

and owing to Mr. Stepney. 

20. Pursuant to the Oral Agreement, Mr. Stepney produced or co-produced several 

sound recordings which appear on the album Open Our Eyes, EWF’s first album to achieve 

Platinum status according to the Recording Industry Association of America. 

21. Until his untimely death on or around May 16, 1976, Mr. Stepney continued to 

produce or co-produce a volume of sound recordings for Defendants under the Oral Agreement 

(“Recordings”). Upon information and belief, and at all relevant times Mr. Stepney’s 

performance under the Oral Agreement occurred in Chicago, Illinois. A non-exhaustive list of 

those Recordings is attached hereto. See EWF Producer List, marked as Exhibit 2, attached 

hereto and incorporated herein by reference. 

22. During his lifetime, Mr. Stepney did not receive any producer royalties, nor was 

he otherwise compensated for the exploitation of the Recordings by Defendants. 

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23. On or around May 17, 1976, Mr. Stepney passed away intestate and his rights 

under the Oral Agreement passed to the Estate. He was survived by his wife and three children as 

his only living heirs. 

24. Sometime in 2008, Mr. Stepney’s wife passed away, leaving his three children as 

his only living heirs and only successors in interest to the Estate and the Oral Agreement. 

25. On or around March 19, 2009, Mr. Stepney’s three children created a revocable 

trust of property, including, among other things, Mr. Stepney’s rights under the Oral Agreement 

in the Stepney Legacy Trust, naming Eibur Music as the Trustee. 

26. Beginning with the release of Open Our Eyes in 1974 and through current 

periods, Defendant M. White has continuously reproduced, distributed, licensed and/or otherwise 

commercially exploited the Recordings for their own substantial financial benefit. 

27. Beginning with its acquisition of Columbia Records in or around 1988 and 

through current periods, Defendant Sony has continuously reproduced, distributed, licensed, 

and/or otherwise commercially exploited the Recordings for its own substantial financial benefit. 

28. To date, Plaintiffs have not received any producer royalties due and owing for the 

exploitation of the Recordings by Defendants. 

29. To date, Plaintiffs have not otherwise been compensated for the exploitation of 

the Recordings by Defendants. 

30. Though Defendants have generated considerable profits and commercial goodwill 

through the exploitation of the Recordings, Defendants have never rendered accounting 

statements to Mr. Stepney or Plaintiffs detailing producer royalties due and owing. 

COUNT I 

(Breach of Contract) 

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31. Plaintiffs hereby incorporate by reference the foregoing allegations set forth in 

this Complaint as if fully set forth herein. 

32. Defendants’ failures to pay Plaintiffs royalties and provide regular accountings 

due under the terms of the Oral Agreement constitute a material breach of the Oral Agreement. 

33. Defendants’ failure to pay Plaintiffs royalties and provide Plaintiffs with regular 

accountings due under the terms of the Oral Agreement constitutes a breach of the implied 

covenant of good faith and fair dealing imposed under every contract. 

34. As a result of the foregoing breaches of the Oral Agreement, Defendants have 

caused Plaintiffs to suffer financial damages and loss of royalties. 

35. Accordingly, Plaintiffs are entitled to an award of compensatory damages in an 

amount to be determined at trial, as well as an award of attorneys’ fees, costs, and pre-and postjudgment interest. 

COUNT II 

(Breach of Fiduciary Duty) 

36. Plaintiffs hereby incorporate by reference the foregoing allegations set forth in 

this Complaint as though fully set forth herein. 

37. Under the terms of the Oral Agreement, Defendants assumed obligations and 

duties to collect royalties on Plaintiffs’ behalf and disburse those royalties to Plaintiffs on a 

semiannual basis. 

38. Under the terms of the Oral Agreement, Defendants assumed an obligation to 

account to Plaintiffs for all royalties collected from the sale and licensing of Recordings. 

39. By virtue of the terms of the Oral Agreement, Defendants owed Plaintiffs a 

fiduciary duty of good faith, loyalty, and full disclosure. 

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40. Defendants have breached its fiduciary duties to Plaintiffs by intentionally and 

willfully failing to collect and disburse royalties for the Plaintiffs’ behalf and failing to account 

to Plaintiffs for all royalties collected from the sale and licensing of Recordings. 

41. As a result of the foregoing breaches of fiduciary duty, Defendants have caused 

Plaintiffs to suffer financial damages and loss of royalties. 

42. Accordingly, Plaintiffs are entitled to an award of compensatory damages in an 

amount to be determined at trial, as well as an award of attorneys’ fees, costs, pre-and postjudgment interest and punitive damages. 

COUNT III 

(Accounting)

43. Plaintiffs hereby incorporate by reference the foregoing allegations set forth in 

this Complaint as though fully set forth herein. 

44. Pursuant to the Oral Agreement, Defendants assumed a contractual duty to 

provide Plaintiffs with regular accountings of all royalties generated from the sale and licensing 

of Recordings. 

45. Defendants also had a fiduciary duty to provide Plaintiffs with regular 

accountings of all royalties generated by the sale and licensing of Recordings. 

46. Defendants breached their contractual and fiduciary duties to Plaintiffs by failing 

to account for these royalties. 

47. Due to Defendants’ failure to account for royalties due to Plaintiffs, Plaintiffs do 

not know what royalties Defendants have received from the sale and licensing of Recordings, or 

the proper amount of royalties due to Plaintiffs. 

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48. Accordingly, Plaintiffs are entitled to a true and accurate accounting of all 

royalties collected by Defendants from the sale and licensing of Recordings, and the proper 

amount of royalties due to Plaintiffs. 

COUNT IV 

(Unjust Enrichment)

49. Plaintiffs hereby incorporate by reference the foregoing allegations set forth in 

this Complaint as though fully set forth herein. 

50. Upon information and belief, a substantial amount, if not all of the Recordings 

were produced in one or more recording studios located in Chicago, Illinois. The Recordings 

were commercially released, manufactured and/or distributed by Defendants and/or their 

designees, and Defendants have received a substantial benefit therefrom. 

51. Upon information and belief, Defendants generated considerable revenue and 

collected royalties from the sale and licensing of Recordings. 

52. Defendants have retained those royalties collected from the sale and licensing of 

the Recordings, and have not otherwise compensated Plaintiffs for their use of the Recordings. 

53. Plaintiffs have been otherwise unable to capitalize on the Recordings due to 

Defendants’ exclusive possession thereof. 

54. Due to Defendants’ collection and retention of royalties and exclusive possession 

of the Recordings, Defendants have been unjustly enriched at Plaintiffs’ expense. 

55. Defendants should not in equity and good conscience be permitted to retain the 

benefits bestowed on them at the Plaintiffs’ expense. 

56. By reason of Defendants’ unjust enrichment at Plaintiffs’ expense, Plaintiffs are 

entitled to recover from Defendants the sum of such unjust enrichment. 

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57. Accordingly, Plaintiffs are entitled to an award of compensatory damages in an 

amount to be determined at trial, as well as an award of attorneys’ fees, costs, and pre- and postjudgment interest. 

COUNT V 

(Constructive Trust) 

58. Plaintiffs hereby incorporate by reference the foregoing allegations set forth in 

this Complaint as though fully set forth herein. 

59. Under the terms of the Oral Agreement, Defendants assumed obligations and 

duties to collect royalties on Plaintiffs’ behalf and disburse those royalties to Plaintiffs on a 

semiannual basis. 

60. Under the terms of the Oral Agreement, Defendants assumed the obligation to 

account to Plaintiffs for all royalties collected from the sale and licensing of Recordings. 

61. By virtue of the terms of the Oral Agreement, Defendants owed Plaintiffs a 

fiduciary duty of good faith, loyalty, and full disclosure. 

62. In reliance on those representations made in the Oral Agreement, Mr. Stepney and 

Plaintiffs adhered to their contractual obligations, which generated royalties and revenue for 

Defendants through the sale and licensing of Recordings. 

63. Defendants have breached their fiduciary duties to Plaintiffs by failing to collect 

and disburse royalties for the Plaintiffs’ behalf and failing to account to Plaintiffs for all royalties 

collected from the sale and licensing of Recordings. 

64. By collecting and retaining royalties due to Plaintiffs, Defendants have been 

unjustly enriched at the Plaintiffs’ expense. 

65. Accordingly, Plaintiffs are entitled to the imposition of a constructive trust on all 

past and future royalties due to Plaintiffs from Defendants. 

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PRAYER FOR RELIEF 

WHEREFORE, Plaintiffs pray for relief as follows: 

a. an award of compensatory damages in an amount to be determined at trial; 

b. an award of punitive damages in an amount to be determined at trial; 

c. a true and accurate accounting of all royalties collected by Defendants from the 

sale and licensing of recordings produced by Mr. Stepney, and the proper amount 

of royalties due to Plaintiffs; 

d. the imposition of a constructive trust on all past and future royalties due to 

Plaintiffs from Defendants; 

e. an award of attorneys’ fees, costs, and pre- and post-judgment interest; and 

f. all other and further relief as the Court may deem just and proper. 

 

 Respectfully Submitted, 

 

 KAYIRA, LLP 

By: __/s/ Eric F. Kayira_________________ 

Eric F. Kayira, Bar No.: 50672 

10 S. Lyle Ave. 

Clayton, MO 63105 

Telephone: 314-727-3100 

Facsimile: 314-727-3101 

AND 

 

 MCCAIN LAW OFFICES, P.C., 

By: _/s/Trent A. McCain________________ 

Trent A. McCain, IL ARDC#6277990 

5655 Broadway 

Merrillville, IN 46410 

Telephone: 219-884-0696 

Facsimile: 219-884-0692 

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Attorneys for the Plaintiff 

 

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