Pat Corcoran once told a jury he deserved credit for Chance the Rapper’s famous 3 hat. Now the merch business behind that hat is costing him.
Cook County Judge James E. Hanlon Jr. ruled Oct. 13 that Corcoran, long known as Pat the Manager, breached his fiduciary duty to the rapper, whose legal name is Chancelor Bennett. The judge found Corcoran secretly demanded side payments from merchandise vendors. The decision closes a legal fight that has run nearly six years, and Chance’s representatives estimate the payout at about $1.5 million.
How a $35 verdict set up the real fight
Corcoran started the battle in 2020, suing for nearly $4 million in commissions. Part of that claim rested on a so-called sunset clause he said entitled him to pay for three years after he was fired. Chance denied any such clause existed. Two months later he countersued, accusing Corcoran of steering career opportunities toward himself and damaging the rapper’s image by demanding kickbacks from vendors.
In March, after a trial of two and a half weeks, a Chicago jury rejected all of Corcoran’s claims. It sided with Chance on breach of contract and tortious interference but awarded him just $35. The small number hid the bigger win. It left Chance’s fiduciary claim for a judge to decide, because the remedies he wanted were ones only a court can order. A second, shorter trial before Hanlon followed in May.
Where Corcoran crossed the line
Hanlon found that Corcoran demanded his own payments from merch vendors without Chance’s knowledge. He ordered Corcoran to surrender those secret profits and to return the 15% management commission he took on merchandise during that period. Corcoran must also hand over the domain chanceraps.com, and interest could be added…