Chance the Rapper Wins Ruling Ordering Ex-Manager to Forfeit Merchandise Commissions

Judge James E. Hanlon Jr. of Cook County Circuit Court has ordered Pat Corcoran, Chance the Rapper’s former manager, to forfeit compensation tied to merchandise deals, closing the final claim in a dispute that went to trial in March. Chance, whose legal name is Chancelor Bennett, had already prevailed on contract and interference claims. The breach of fiduciary duty claim was left to the court rather than the jury.

In a 28-page ruling, Hanlon found that Corcoran’s merchandise company took commissions from Bennett’s own vendors on Bennett’s own orders. The judge called it “a secret profit.” Corcoran, he wrote, acted as Bennett’s agent and fiduciary, buying goods and services with Bennett’s money and carrying Bennett’s position into negotiations with people Bennett never met. He must surrender the vendor-paid commissions and forfeit his 15 percent management compensation connected to merchandising.

The ruling covers a period in which Corcoran earned more than $10 million managing Bennett’s music, touring and merchandise businesses. It does not set an exact figure, leaving the amount to trial exhibits. Bennett’s representatives say Corcoran could forfeit as much as $1.5 million in management fees, in addition to what they describe as kickbacks from merchandise vendors.

Hanlon declined to go further. He rejected punitive damages and the forfeiture of all compensation Corcoran received during the breaches, which would have covered most of his earnings, noting that Corcoran was free to build his own business and owed Bennett no first right of refusal on outside investments. The disloyalty that caused real harm, the judge wrote, was concentrated in the merchandise business, where Corcoran’s company sat on both sides of Bennett’s purchases.

In a statement, Bennett said he was grateful to close the chapter and looked forward to eventually telling his side of the story.