Ray Evans, Appellants v. Famous Music Corporation, Respondent

Summary

The New York Court of Appeals affirmed the Appellate Division, holding that the royalty contracts do not obligate Famous Music to share foreign tax credits with the songwriters. The Court based its decision on the plain meaning of the contract language, the lack of ambiguity, and industry custom that does not override clear terms. Justice Read dissented, arguing the contracts require sharing the tax credit benefits.