MEMPHIS, TN – A federal appeals court has affirmed a lower court ruling in a dispute over a multimillion-dollar insurance payout following a 2015 fire and arson at the House of Blues recording studio in Memphis.
According to the Sixth Circuit Court of Appeals, the fire caused extensive damage to the studio and its equipment, which had been insured by Hanover American Insurance Company. Music producer Christopher C. Brown, through his company Tattooed Millionaire Entertainment, held the policy covering the premises and recording gear. Separate insurance coverage had also been obtained by musician John Falls, who leased and operated one of the studios.
Court records show that Brown submitted forged receipts to Hanover for equipment lost in the fire. The jury later determined that Falls had not committed fraud and awarded him $2.5 million for business personal property losses and $250,000 for business income coverage. Hanover sought to overturn the verdict but was ordered to reinstate the award on appeal.
The recent ruling upholds the district court’s allocation of the insurance funds, awarding Falls more than $2 million while barring Brown from recovering his portion based on Tennessee public policy, which prevents individuals from profiting from their own wrongdoing. Brown has since pleaded guilty to federal mail fraud charges related to the insurance claims.
The decision closes a long-running dispute over the distribution of insurance proceeds stemming from the arson, which destroyed high-value recording equipment and disrupted operations at the Memphis studio.
