
In February 1979, nearly five years after Dolly Parton walked into Porter Wagoner’s Nashville office and sang “I Will Always Love You” to end their seven-year television partnership, her former mentor filed a three-million-dollar breach-of-contract lawsuit against her in federal court.
The legal battle severed communication between one of country music’s most famous duos for eight years, centering on ownership of their shared Nashville business ventures before Parton quietly intervened in the late 1980s to help rescue Wagoner from financial ruin.
When Parton left “The Porter Wagoner Show” in the spring of 1974 to lead her own touring Traveling Family Band, the two initially continued working together in the recording studio. Wagoner produced several of her solo albums at RCA Victor and sang with her on their first number-one duet single, “Please Don’t Stop Loving Me,” which topped the country chart in October 1974.
Over the next four years, however, their professional trajectories separated sharply. Parton hired Los Angeles management firm Katz-Gallin-Moretti, teamed with pop producer Gary Klein, sold more than a million copies of her 1977 crossover album “Here You Come Again,” and won the Country Music Association’s Entertainer of the Year award in 1978, while Wagoner’s syndicated television show lost stations and his solo chart appearances slowed.
At the heart of Wagoner’s February 1979 complaint was Owe-Par Publishing Company, a firm Parton had established in 1967 at age twenty-one alongside her maternal uncle and early musical partner, Bill Owens. Combining the first three letters of Owens’s and Parton’s last names, Owe-Par held the copyrights to the hundreds of songs she had written during her years on Wagoner’s program, including “Coat of Many Colors,” “Jolene,” and “I Will Always Love You.”
After Parton joined Wagoner’s cast in 1967, Wagoner had become a co-owner of Owe-Par, and in 1972 the pair had also opened Fireside Studios at 813 Eighteenth Avenue South in Nashville, where they recorded their own releases and leased studio time to outside artists. In his 1979 court filing, Wagoner claimed that their original agreements entitled him to an ongoing fifteen percent share of Parton’s post-departure income as well as continuing control over their joint publishing and studio assets.
The lawsuit dragged through depositions and legal negotiations for more than a year while Parton prepared for and filmed her Hollywood debut alongside Jane Fonda and Lily Tomlin in the 1980 comedy “9 to 5.” Between camera setups on the Twentieth Century Fox lot in Los Angeles, Parton conferred with attorneys over accounting records involving the partner who had stood beside her when audiences booed her in 1967.
Rather than spend years fighting Wagoner in open court, Parton agreed to an out-of-court settlement in 1980 totaling roughly one million dollars. To secure undisputed control of her future earnings and her songwriting copyrights, she surrendered her half-interest in Fireside Studios to Wagoner and paid off the remaining settlement balance in installments drawn from her touring receipts, record royalties, and film salary.
For the next seven years, the two did not speak or share a stage. Even after they reunited briefly in a recording studio for the 1980 album “Porter & Dolly”—assembled from previously recorded vocal tracks that RCA Victor updated with new instrumentation—their personal distance remained intact throughout the early 1980s.
The freeze finally ended in the autumn of 1987, after Parton launched her weekly ABC network variety series, “Dolly.” Reaching out directly to Wagoner, she invited him to appear as a special guest on the broadcast, where they sang together and embraced in front of the studio audience.
Not long after that television reunion, Parton learned that Wagoner was facing severe financial strain and federal tax liabilities with the Internal Revenue Service. Stepping in privately, she purchased the rights and master interests to their shared duet catalog and remaining publishing assets, providing Wagoner with the cash needed to pay down his debts without public embarrassment.
Once Wagoner stabilized his finances through regular performances on the Grand Ole Opry and booking engagements at Parton’s Dollywood theme park in Pigeon Forge, she signed those catalog rights back over to him. On October 28, 2007, twenty-eight years after the Owe-Par lawsuit was filed in Nashville, Parton stood beside Wagoner’s bed at Alive Hospice holding his hand just hours before he died at age eighty.