Hall & Oates sale still on hold after ‘ultimate corporate betrayal’, judge rules

A judge’s discretion Bandmates Daryl Hall and John Oates put planned merch sales on hold while they work out a deal.

A temporary restraining order in the lawsuit filed by Hall prevents Oats from selling half of his Whole Oats companies until an arbitrator weighs in or until Feb. 17.

Although Hall and Oates did not appear in court Thursday, lawyers argued on behalf of the guitarist’s decision to sell half of his stake in Hall Oates Enterprises to Main Wave Music.

The sale was suspended while an arbitrator settled a dispute between members of the rock band Hall & Oates.

Hall & Oates singer Daryl Hall filed a restraining order against bandmate John Oates

Neither Daryl Hall nor John Oates appeared in court Thursday. (Getty Images / Getty Images)

“You can’t sell half of a stock to a third party without the consent of the other party, and that’s intuitively correct,” Hall’s attorney, Christine Lepera, told the court.

Oates’ attorney, Tim Warnock, said Hall’s claim that Oates went behind his back was untrue.

“Mr. Oates proceeded as he was allowed to proceed,” Warnock said, pointing to the judge their joint business agreement under seal in the case. “Mr. Hall could have done the same thing himself.”

Hall accused Oates of “ultimate partnership betrayal” in a court document filed Wednesday, saying he tried to sell his stake in a joint venture without Hall’s permission. The joint venture in question includes Hall & Oates trademarks, personal name and goodwill rights, recording royalty income and website and social media assets, according to Hall’s court filing.

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After attempting to initiate arbitration on November 9, Hall sought File a separate case Oates sought a temporary injunction to prevent him from selling his stake in Whole Oates Enterprises. The business venture is managed by two musicians.

The temporary injunction, issued Nov. 17, prevents Oates from selling his stake in Mainstream Music until an arbitrator weighs in or the temporary injunction expires, according to court documents obtained by FOX Business.

An arbitrator has been selected to settle the dispute, lawyers for both parties told the court on Thursday.

Hall & Oates singer Daryl Hall’s temporary restraining order bars bandmate John Oates’ planned merchandising

Daryl Hall and John Oates pose for a portrait

Daryl Hall took John Oates to court after the guitarist tried to sell his half of the joint business venture. (Getty Images / Getty Images)

The legal battle began on November 16 when Hall sued Oates in Nashville, Tennessee, according to court documents. The case has been sealed by court order, but is listed under the category of contract/debt. On Nov. 24, a temporary restraining order was issued.

The two formed a pop-rock band Hall & Oates In the 1970s, although they had not officially separated, Hall and Oates lived separate lives for several years.

Hall & Oates released their first album “Hole Oates” in 1972. Since their inception, they have released 18 studio albums and had six No. 1 singles. Some of Hall & Oates’ biggest hits include “Rich Girl,” “Manator” and “You Make My Dreams.”

According to Variety, the two are on tour together until October 2022.

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Daryl Hall and John Oates

Daryl Hall’s temporary restraining order blocked John Oates’ planned sale of the business. (Getty Images / Getty Images)

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Hall made it clear in a 2022 interview that there was a split between him and Oates.

“You think John Oates is my partner?… He’s my business partner,” Hall said during an appearance Bill Mahers “Club Random” Podcast. “He’s not my creative partner.”

“John and I are brothers, but we’re not creative brothers. We’re business partners. We made the ‘Hall & Oates’ record together, but we’ve always been very separate, and that’s the most important thing to me.”

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Daryl Hall and John Oates play guitar

Daryl Hall and John Oates released their first album in 1972. (Getty Images / Getty Images)

Hall used the example of the band’s song “Kiss on My List” to demonstrate how separate the two were. Although Oates is listed as a co-producer on the track, he is not listed as a songwriter.

“I did all that [harmonies],” Hall said, “that’s all I am.”

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The Associated Press contributed to this report.

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