Johnny Depp’s ‘Outrageous Spending’ Habits Not Relevant In Legal Battle With Former Financial Managers

Ford Springer | Entertainment Reporter

Johnny Depp’s outrageous spending habits might have played a significant role in his financial ruin, but it might not do so in the legal battle between the actor and his former financial advisors, The Management Group.

The “Pirates of the Caribbean” star filed a lawsuit against TMG in January claiming the group collected millions in fees without his consent, loaned his money without his knowledge and racked up tax penalties and other fees while managing his wealth. TMG filed a cross complaint back at Depp claiming that he was responsible for his own demise, spending roughly $2 million-a-month on an extravagant lifestyle.

(Photo credit: Getty Images)

(Photo credit: Getty Images)

In a tentative ruling before a hearing on Monday, Los Angeles County Superior Court Judge Teresa Beaudet found that TMG failed to defend against Depp’s claim that the group mismanaged his fortune, but simply deflected responsibility to the actor, according to The Hollywood Reporter.

“TMG’s action for declaratory relief seeks declarations placing culpability for Depp’s financial woes on him, and freeing TMG of any past wrongdoing,” Beaudet wrote. “No results or effects of such declarations on the parties’ responsibilities or duties are alleged.”

Beaudet also found that many of the allegations against Depp regarding his spending are no longer relevant as the case has been presented.

“The pages of allegations of Depp’s allegedly outrageous spending clearly have no relevance to the 5% commission allegedly owed TMG from the ‘Pirates of the Caribbean’ payout, or to the final work done by TMG on transitioning their files to Depp’s new representatives,” Beaudet wrote. “They would seem more relevant to the allegations of breach of oral contract related to the credit card debts, except that TMG does not specifically allege which exact expenditures by Depp were spent on which card, leading to that debt owed. Without specifics, the Court cannot find they are relevant to any cause of action in the FACC.”

(Photo: REUTERS/Mario Anzuoni)

After the tentative ruling by Beaudet, TMG amended its declaratory claim to mirror Depp’s claim for declaratory relief, according to The Hollywood Reporter. While Depp’s spending habits were found not relevant in the tentative ruling, they might end up playing a role in TMG’s new claim.

“We intend to file an amended cross complaint for declaratory relief. All of the issues regarding Depp’s extravagant spending continue to be fully included in the case,” TMG attorney Michael Kump stated.

“Today the court threw out a meritless cause of action TMG never should have asserted,” Depp’s attorney, Benjamin Chew,  said after the hearing. “The fact that they had to change their theory on the fly is a sign of their desperation to distract from the real issues in the case. The court also granted Mr. Depp’s motion to strike from the cross complaint a mountain of gratuitous smears about him. This was a good day for Johnny Depp.”

Ford Springer

Entertainment Reporter


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