Pitbull Sued for $1 Million by Former Manager Charles Chavez

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Pitbull performs during "An Evening with Pitbull" at Hard Rock Live! in the Seminole Hard Rock Hotel & Casino on Aug. 1, 2016 in Hollywood, Fla.

Charles Chavez and Armando Perez, better known as Pitbull, seemed to have the perfect client-manager relationship. Together since March, 2007, both understood hustle, hard work and hits and seemed to have settled into a management relationship that had purpose and direction but was not overbearing. Even their split, in March 2015, was amicable, at least outwardly: No nasty comments on social media, no acrimonious articles.

That's no longer the case. On Aug. 2, Chavez, through his company Latium Entertainment, filed a lawsuit Aug. 2 in Los Angeles Superior Court seeking over $1 million in compensation from Pitbull, alleging breach of oral agreement and breach of the implied covenant of good faith and fair dealing.

The suit is straightforward. It alleges that when Chavez and Pitbull began working together in March 2007, they entered into an “oral agreement at that time,” stating Latium would receive 10 percent of Pitbull’s revenues from “all business derived from activities on which Chavez worked, regardless of when those revenues were received.” Activities included recordings, publishing and performances. The 10 percent, alleges the suit, was always paid while Chavez managed Pitbull.

But after Chavez stopped managing Pitbull in March 2015 the tap was turned off, says the suit, even when pertaining to projects Chavez had worked on prior. These include seven albums dating back to 2007’s The Boatlift and ending with 2014’s Globalization. In those, Chavez is credited both as Pitbull’s manager and also executive producer. The suit estimates that the amount owed to Latium in both publishing and recording monies exceeds $1 million. 

The suit makes no mention of either an actual written contract or what’s known as a “sunset clause,” which prevents the artist from owing money long after a contract has expired or paying double commission. Sunset clauses typically put a date in which the artist is no longer obliged to pay commission, or phase out that commission over time.

Neither Chavez, Pitbull or their representatives returned calls for comment.