Disa Records Sues Breach Of Contract Suit Against Univision

The founders of Mexican Regional music label DISA RECORDS have filed a breach of contract lawsuit against the music division of UNIVISION COMMUNICATIONS INC. The lawsuit, filed in a central CALIFORNIA U.S. Distric Court, alleges that UNIVISION has employed "heavy-handed legal tactics to obstruct a five-year-old agreement under which UNIVISION is obliged to purchase the half of Disa Records that it doesn't already own."

In 2001, UNIVISION acquired a 50% interest participation in DISA RECORDS from the CHAVEZ family, which founded the record label and continues to manage the partnership. The CHAVEZ family claims that UNIVISION recently insisted that the noncompetition agreements reached back in 2001 be replaced by new non-compete undertakings subject to NEW YORK rather than CALIFORNIA law and venue, and the media company "effectively said it wouldn't move forward on the DISA LLC acquisition unless the CHAVEZ family changed the previously executed agreements."

"We've been good partners for five years and we're mystified at Univision's bullying tactics," said DISA RECORDS CEO PATRICIA CHAVEZ. "My family and I are taking this step with great reluctance only because we see no alternative."

The lawsuit seeks the value of the transaction UNIVISION is obligated to complete.

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