In a recent legal development concerning the Estate of the late Michael Jackson, the executors stated that Katherine Jackson does not possess the power to obstruct a significant agreement they have finalized.
Legal papers sourced by Radar Online revealed that John Branca and John McCain, who have been fulfilling the role of executors following Jackson's passing in 2009, urged a California appeals court to dismiss Katherine's latest plea.
In a year-long battle, Branca and McClain have been in a heated dispute with Katherine over a highly confidential agreement.
The heirs of Jackson's fortune are his three children: Prince, Paris, and Blanket. A stipulation in the music icon's will directed the executors to ensure Katherine's well-being for her life.
Michael Jackson Estate vs. Mom Katherine
In the court filings, the executors have chosen to keep the specifics of the arrangement undisclosed.
They forecast that the potential deal might generate a profit exceeding $400 million for the Estate.
Contrary to the anticipated outcome, Katherine submitted a motion marked with extensive redactions, urging the court to withhold approval of the transaction.
In their plea to the court, the executors requested the dismissal of Katherine's apprehensions, citing her record of opposing their secured deals.
McClain and Branca highlighted the success of the concert film "This is It" which brought in a $60 million advance and significant earnings for the Estate, despite Katherine's objections to the project.
During the court hearing, the parties involved faced a fierce battle.
Katherine expressed her disapproval of the arrangement and emphasized the support she had from Paris and Blanket.
Ultimately, the court ruled in favor of the executors' request, disregarding Katherine's testimony.
The judge authorized McClain and Branca to proceed with completing the transaction.
Per the order, "The proposed transaction is approved, and the executors are authorized and instructed to take all actions necessary to implement the proposed transaction, including but not limited to signing all contracts and performing all obligations required of the estate."
Katherine lodged an appeal to overturn the ruling.
Her contention was based on a clause in her son's Will that stipulated that the executors were prohibited from liquidating Jackson's holdings until they were transferred to The Michael Jackson Family Trust, a trust in which she and Jackson's children are designated as beneficiaries.
Per the document, "Michael's intention is crystal clear. Article III states in plain language that the 'entire estate' shall be given to the Trust."
"The Proposed Transaction does not give the entire Estate to the Trust. It does not give most of the Estate to the Trust. It gives none of the Estate to the Trust."
Sony Buys Michael Jackson's Catalog
Katherine's indications strongly suggest that the agreement under discussion pertains to the recent transaction involving the sale of a substantial portion of Jackson's music catalog to Sony for $600 million. This significant deal came to light on February 9.
Within her legal appeal, the attorney representing Katherine brought up the music catalog in a publicly available document for the first time.
The probate judge's decision hinged on the notion that if Michael explicitly wished to exclude the Music Catalog from sale, he needed to have clearly stated so.
Katherine contended that Michael expressed this intention in his Will despite the judge's interpretation. In the response recently submitted by McClain and Branca, they argued that Jackson's Will granted them complete autonomy to liquidate his assets.
"Over the past fourteen years, the Executors have exercised their powers with extraordinary care and extraordinary diligence with extraordinary results. As the probate court recognized in its decision below: 'What started as nothing but debt and substantial ongoing obligations has been turned into a $2 billion estate.'"
"If Michael wanted to restrict the power of his Executors to sell Estate property, he could have said so. Instead, he did the opposite: expressly gave them 'full power. . to sell' Estate property as they 'deem best.'"
The executors explained that certain assets had not been transferred to the Trust because of a tax dispute with the IRS. They emphasized that they retained the authority to sell these assets even if they were part of the Trust.
Moreover, it was highlighted by the executors that Katherine had not raised any objections to the previous sales of Jackson's assets made by them. So, the executors requested the dismissal of Katherine's appeal.
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