It doesn’t matter if you’re a high-stakes investor or the front man for a heavy metal band. When you form a partnership with someone, there is always the chance that the business relationship will break down and the former partners will head to court. Tool singer Maynard James Keenan is in that position right now, as he is being sued over a side venture involving the production and sale of alcoholic beverages.
Dave Sanclemente is suing Keenan over a dispute involving Potions, LLC, a gin distillery the two allegedly co-founded along with several other partners in Arizona during 2025. Sanclemente claims alleges Keenan and the other partners effectively froze him out of the company, barring him from its headquarters and removing his access to its bank account. Specific allegations in the case include breach of contract, breach of the implied covenant of good faith and fair dealing, and breach of fiduciary duty. Sanclemente is seeking damages, access to the company’s financial records, and reimbursement of his legal fees.
Any breach of contract claim can be difficult, but business divorce cases present unique challenges. When everyone is getting along at the outset of a new venture, they might not take the time to negotiate formal agreements. Emails, text messages and recounted conversations could be used to shed light on each party’s rights and obligations.
When one partner uses their control over a business to marginalize, exclude, or financially harm another, the business itself could be in jeopardy. While a celebrity might attract the most attention to a business venture, it does not necessarily give them the authority to violate the express and implied rights of other partners. If a compromise cannot be reached, litigation costs and damages paid to the rejected partner could push the business into insolvency.
No matter the nature of the business, or how well the owners are getting along during the launch, every joint ownership structure should be governed by clearly defined agreements that define each partner’s rights, responsibilities, and remedies in the event of a dispute. When things don’t work out, an experienced Arizona business litigation attorney can help you assert your rights effectively.
The Law Offices of Donald W. Hudspeth P.C. offers experienced guidance and support to Arizona clients engaged in partnership and shareholder disputes. To schedule a consultation in our Phoenix office, please call 866-696-2033 or contact us online.