Delaware judge refuses to dismiss lawsuit in battle over estate of the late pop icon Prince

A Delaware judge has refused to dismiss a lawsuit filed by former business advisers to the late pop music icon Prince against two of his siblings and other heirs in a dispute over his estate. The judge on Friday also agreed with plaintiffs that an agreement purporting to replace them as managers of a limited liability company established by three siblings was invalid.

Prince died of an accidental fentanyl overdose in 2016. He had no will, and his six siblings inherited equal interests in the estate. Three of them assigned their combined 50% interest to Prince Legacy LLC. They also granted McMillan and Spicer each a 10% interest in Prince Legacy, along with broad and exclusive management authority.

One of Prince’s sister, Sharon Nelson, later regretted the decision and led an effort to remove McMillan and Spicer as managing members by amending the LLC agreement. But as a matter of contract law, the judge ruled the only reasonable interpretation was that the terms of the initial agreement prohibited the defendant’s attempt to amend the agreement.

The lawsuit alleges among other things that Sharon improperly tried to insert herself into management decisions and once demanded that the entire staff of the Paisley Park Museum in Minnesota be replaced. She also accused McMillan and Spicer of fraud and tried to sell her interests in Prince Legacy without the required consent of the other members.

The lawsuit is part of a long and convoluted legal battle involving both the size and the beneficiaries of Prince’s estate. In 2022, nearly six years after his death, the Internal Revenue Service and the administrator of the estate agreed to end a court battle and value the estate at roughly $156 million.

For more information see Randall Chase “Delaware judge refuses to dismiss lawsuit in battle over estate of the late pop icon Prince“, AP, July 5, 2024.