McGraw and his wife Faith Hill were in court in Nashville Wednesday to hear arguments in an ongoing lawsuit with Curb, which sued the star.
The label claims that McGraw breached his 1997 contract by providing an album too soon. The album "Emotional Traffic" has not been released.
McGraw's attorney argued that the singer should be free to record while the lawsuit continues. A trial is scheduled for July.
Curb Records lawyer Jay Bowen argued the label lost two years of recordings that should have been on his fifth album with Curb.
The Associated Press contributed to this report.