Where common law is concerned, legal precedents can come from incredibly unusual places that continue to influence how solicitors advise their clients and how the law is interpreted.

The formation of contract law came from a marketing campaign for a dubious cure for the flu and its subsequent lawsuit: the duty of care emerged from a dead snail in a drink, and the fundamental legal principle of the chain of causation was the result of a firework prank in a market.

Given that The Beatles were the biggest rock band in the world and one of the biggest of all time, it is perhaps unsurprising that the legal case that broke them up is both highly influential and commonly misunderstood, with implications for mediation and contract law which endure to this day.

No Longer A Going Concern

The Beatles were the biggest band in the world throughout the 1960s, but by 1968, the close personal, professional and legal partnership between the three was fraying.

During the recording of The Beatles (aka The White Album) in 1968, Ringo Starr quit the band temporarily. The same happened with George Harrison during the Get Back sessions, as well as John Lennon following the recording of Abbey Road.

The disruption of The Beatles as a band made a break-up likely although not inevitable, although that changed in 1970.

Paul McCartney Vs The Beatles

After a disastrous meeting between the four Beatles, three of which were managed by the then-Rolling Stones manager Allen Klein whilst Mr McCartney was managed by father-in-law Lee Eastman, there was an impasse that could only be circumvented through the courts.

Paul was told he needed to sue the other Beatles to dissolve the legal partnership the four had, citing that the group had stopped working together for at least a year, the other three had breached the deed of partnership by appointing Mr Klein, and he had not received audited accounts.

Later, the altering of certain Let It Be songs by producer Phil Spector without Mr McCartney’s approval, the transfer of the film rights to Let It Be and an attempt to delay the release of his solo record McCartney were also cited as reasons in court to dissolve the partnership.

Three months after the lawsuit was filed, High Court judge Sir Blanshard Stamp ruled in his favour and put the Beatles’ assets, including record label Apple Corps, into receivership.

The Legacy Of The Legal Case

This was the legal decision which split The Beatles and led to years of animosity, including the recording of the infamous “How Do You Sleep?” by John Lennon. However, its impact was significant not only musically but also legally.

The final dissolution of The Beatles took over four years to finally complete, largely because until 1973, Mr Starr, Mr Lennon and Mr Harrison were managed by Mr Klein. Once they all separated from him, negotiations improved, leading to what has since become known as The Beatles Agreement.

This document, which was 87 pages long, was signed by all four Beatles on 29th December 1974. The settlement was this long because of the complex web of contracts and agreements between the band, Apple Corps and various other groups, described by one legal expert as “almost impossible” in its complexity.

It ultimately proved the importance of clarity, understanding the nature and terms of any legal agreement you enter into, and the case would influence other cases pertaining to legal partnerships and the ownerships of assets therein should the parties involved decide to dissolve it.