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Court Orders $625,000 Returned to Michael Jackson Estate, Tightens Fee Oversight

The decision imposes new guardrails on legal spending following Paris Jackson's challenge to 2018 bonuses.

Overview

  • Court documents obtained Wednesday, May 13 revealed private referee Mitchell L. Beckloff disallowed $625,000 in 2018 bonus payments to outside law firms and ordered the money returned to the estate.
  • The order bars executors John Branca and John McClain from making bonus payments to attorneys without written consent from all beneficiaries or a court order.
  • Beckloff said Paris Jackson may seek an award of reasonable attorneys' fees under the common fund theory for bringing the successful objection.
  • The ruling requires the estate to withhold 30% of attorneys' fees going forward until the court approves them and to file petitions accounting for legal fees from 2019 through 2024 by September 15, 2026.
  • The court praised the executors for transforming the once debt-laden estate into a financial powerhouse, and the executors said none of the disputed funds went to them personally and that they respect, though disagree with, parts of the decision.