The latest legal battle between Journey members Jonathan Cain and Neal Schon appears to be over after Schon admitted to appointing a neutral third party to resolve the “impasse” that Cain claimed is crippling the band's operations.
In an order issued Wednesday (August 28), a Delaware judge appointed a so-called guardian to sever ties between the two longtime bandmates. The ruling came a month after Cain sued Schon seeking such an arbitrator, arguing that their endless disputes pose a “serious threat of harm” to the band's “storied history of musical greatness.”
The order comes after Schon agreed to appoint such a neutral. In his written decision, the judge wrote, “Sean does not object to the court's appointment of a custodian with the authority to act as a third-party deadlock administrator.”
In a statement, a representative for Cain said he was “thrilled with the outcome and looking forward to moving beyond this matter so Journey can continue the band's 50th Anniversary Freedom Tour.” An attorney for Schon did not immediately return a request for comment.
Legal battles are nothing new for Cain and Schon, the two main remaining members of an iconic rock band still printing money decades after their “Don't Stop Believin'” heyday. The two have repeatedly clashed in court over the band's finances over the past two years.
Filed by Cain last month in Delaware Chancery Court, the new case largely rehashed those same spending disputes — such as Cain alleging Schon unilaterally charters private jets and lavishly spends band funds on personal expenses.
But technically, the case focused narrowly on the governance of Freedom 2020 Inc., a Delaware-based corporate entity they created to operate Journey's tours. Since Cain and Schon each control exactly 50% of the company, the lawsuit says the two have reached an impasse that has spilled over into many aspects of the group's operations.
“The impasse among the company's directors now interferes with the company's ability to take even the most basic actions and causes significant disruptions to the company's smooth operations,” Cain's lawyers wrote.
Wednesday's order aims to remedy this situation by naming Joseph R. Slightsa former judge of the Chancery Court, as a custodian — a court-appointed official who can cast tie votes in corporate disputes.
To carry out those duties, the judge said Slights will be able to “retain consultants or professionals, including music industry consultants, attorneys, accountants and other professionals,” in order to decide how to resolve the disputes between Cain and Schon.
Slitch will have his work cut out for him. The complaint filed last month painted a picture of extreme dysfunction at Journey, ranging from spending decisions to employee management.
“The petitioner and the respondent are at an impasse over matters involving the hiring and firing of company employees and complex crew members,” Cain's attorneys wrote in the lawsuit. “It's common for one manager to fire an employee or crew member, and hours or days later, the other manager will rehire the same person.”
In a Facebook post last week, Schon said Cain's allegations were “slanderous” and that he “can't stress enough how upset I was and how wrong it is.” But he hinted that a deal was close to resolve the lawsuit by appointing a neutral third party like Slights.
“We're going to bring in someone impartial to help us sort out our differences, bring clarity to what we're doing and allow us, as a band, to get back to what we should all be focusing on – making music and playing for fans.” , Schon wrote at the time.
