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Bad Faith Claim Against Def Jam Will Go to Trial

(CN) - Island Def Jam Music Group must face a lawsuit from a singer's agent who claims the record label interfered with his business relationship.

Chrisette Michele Payne, whose stage name is Chrisette Michele, won a Grammy in 2009 for Best Urban/Alternative Performance for her song, "Be OK."

As Michele enjoyed success on stage, backstage her handlers unraveled. The singer's manager, Douglas Ellison, and his company sued Island Def Jam for bad faith.

Ellison claims the label manipulated Michele into severing ties with his management group.

The justices of the Manhattan-based first department appeals court affirmed the lower court's ruling that Ellison's case should not be dismissed.

"These allegations state a cause of action for the violation of the covenant of good faith and fair dealing that is implied in every contract," the justices ruled.

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