Chance the Rapper Takes the Stand in Multimillion-Dollar Legal Battle

Handshakes and Heartbreak: Chance the Rapper Takes the Stand in Multimillion-Dollar Legal Battle

CHICAGO, IL — The "independent" success story of Chance the Rapper faced a stark reality check this week in a Cook County courtroom. Chancellor Bennett, the Grammy-winning artist known for shunning major labels, took the stand Tuesday to testify against his former manager, Pat Corcoran, as their five-year legal feud finally reached trial.

At the heart of the civil dispute is a "sunset clause", a common industry provision that allows managers to continue collecting commissions for several years after a contract ends. Corcoran, known as "Pat the Manager," claims he is owed approximately $3.8 million in unpaid commissions through April 2023. Bennett, however, maintains that no such clause ever existed in their decade-long verbal agreement.

The "Handshake" That Built an Empire

The trial has cast a rare, unfiltered light on the informal "handshake" deals that fueled Bennett's meteoric rise. Corcoran, who managed the rapper from 2012 until his termination in April 2020, testified earlier in the week that he "poured his life" and personal savings into the artist’s career.

His legal team argues that a 15% commission including a three-year sunset period—was an oral agreement struck in a Chicago apartment in 2013.

“We never described it as a contract until he sued me,” Bennett testified under cross-examination. “We had an at-will agreement that didn't address termination... We never discussed the sunset clause, we just discussed how I'd pay him.”

 

 

A Partnership Decayed

The courtroom drama revealed the deep personal rift between the former friends. Bennett’s attorneys characterized Corcoran’s demands as a symptom of "greed," alleging that the manager had already earned millions during their partnership.

Conversely, Corcoran’s lawsuit paints a picture of a partnership that soured following the "lackluster" reception of Bennett’s 2019 album, The Big Day. Corcoran claims he was unfairly scapegoated for the album's performance and the subsequent cancellation of its supporting tour, eventually being replaced by Bennett’s father and brother.

Key Revelations from the Witness Stand

The first week of testimony has provided several "revelations" about the inner workings of Chance the Rapper’s business:

• The Missing Paperwork: Corcoran testified that Bennett habitually refused to sign written agreements with virtually every professional in his circle, from business managers to booking agencies.

   

   

• Merchandise Losses: Corcoran claimed he personally subsidized over $350,000 in losses for the rapper's merchandise operation to ensure high quality for fans.

   

   

• The Counter-Suit: Bennett has filed his own $1 million countersuit, alleging that Corcoran breached his fiduciary duties by using the "Chance" brand to benefit his own side businesses.

   

   

[Table: Bennett v. Corcoran — Trial at a Glance]

The Industry Impact

Legal experts say the case could serve as a cautionary tale for the "indie" era of music. While handshake deals represent the trust and camaraderie of a startup artist, they offer little protection when millions of dollars are on the line.

“This trial is a spotlight on the risks of verbal contracts,” said one industry analyst. “If you don't have it in writing, you're essentially leaving your legacy up to a jury’s interpretation of a conversation that happened over a decade ago.”

The trial is expected to continue for another week, with further testimony from industry experts and members of Bennett’s inner circle.