A Los Angeles judge has ruled that $625,000 in bonus payments made by the Michael Jackson estate to third-party law firms in 2018 must be returned. The decision follows a legal challenge from Paris Jackson, a beneficiary of the estate.
Court Ruling
Referee Mitchell Beckloff disallowed the bonus payments, which were made during the second half of 2018, and ordered the funds returned to the estate.
The ruling imposes new procedural checks: estate executors cannot make bonus payments to attorneys without either the written consent of all beneficiaries or a court order. Additionally, attorneys may be paid 70% of reasonable fees on an ongoing basis, while the remaining 30% requires specific court approval.
The court also mandated greater transparency in estate expenditures. Attorneys are now required to file accountings for estate attorneys' fees from 2019 to 2024 by September 15, 2026.
Responses
A spokesperson for Paris Jackson stated that the ruling provides transparency and accountability measures.
Estate co-executors John Branca and John McClain acknowledged the court's ruling. They noted that the judge recognized their "exceptional service to the estate." They stated that no bonuses were paid to themselves and that they have always required outside counsel to return funds if payments were not approved. They expressed disagreement with the decision but said they respect it and will move forward.
Background
The dispute is part of ongoing legal battles over control of Michael Jackson's estate since his death in 2009. Paris Jackson has objected to various estate expenditures, including costs related to the biographical film "Michael." The film has grossed over $584 million globally.