Opinion ID: 780231
Heading Depth: 2
Heading Rank: 3

Heading: The Release Issues

Text: 12 Both Appellants dispute that the releases they signed in the bankruptcy proceeding sufficed to relinquish their claims for record royalties.
13 Jasper's settlement with the Older Isleys' estate was set forth in two releases, one dated June 1991 and the other September 1991 (the Jasper Releases). Both Jasper Releases were signed by Jasper and his wife, and the first release was also signed by Jasper's counsel and the Bankruptcy Judge. The District Court found that the Jasper Releases followed aggressive arms length negotiation during which Jasper was represented by counsel. 14 The June 1991 release included the following provisions: 15 2.... Jasper acknowledges and agrees: (1) that T-Neck Records, Inc. shall continue to have all rights in and to recordings made by Jasper that have heretofore been recorded for release on the T-Neck Records, Inc. label and to receive all royalties relating thereto, without in any[]way limiting Jasper's rights to songwriters royalties retained herein.... 16 In the September 1991 release, Jasper agreed to release and give up any and all claims and rights, known or unknown, against the Older Isleys, Bovina, and T-Neck Records. In return, as the District Court found, Jasper received $175,000, but avoided responsibility for the millions of dollars in liabilities of the Older Isley's bankruptcy estate, including liabilities for which the Trustee contended Jasper was jointly liable. 17 In view of the unambiguous language of Jasper's releases, the District Court properly ruled that Jasper's claims against T-Neck for record royalties had been validly released.
18 Marvin's release is contained in the May 17, 1991, consent order entered by the Bankruptcy Judge in the Older Isleys' consolidated Chapter 7 proceedings. That order, signed by Marvin and Ernest Isley, states that he and Ernest hereby release and discharge the Debtors and all corporations owned or controlled by the Debtors [ i.e., including Bovina and T-Neck] ... from any and all claims that they have or may have against the Debtors and all corporations owned or controlled by the Debtors.... Like Jasper, Marvin was faced with the prospect of being liable for 1/6th of the debts of the Older Isleys' bankruptcy estates. He avoided that possibility by surrendering his claim for past record royalties and releasing any future claim for record royalties. He also received nearly $47,000 for songwriter royalties. 19 The record fully supports the District Court's conclusion that Marvin released his claim for record royalties.