After his falling out with Denny Cordell, Leon moved to Los Angeles and started his second label, Paradise Records. The label distributed Leon's records from 1976 to 1984, including two with his then-wife Mary McCreary, the second volume in the Hank Wilson country music series, and The Live Album with The New Grass Revival. The label also released records by Gary Ogan, Wornell Jones, and Billy Chinnock. 

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After his 1984 release, Solid State, Leon would take a sabbatical from recording, focusing on touring as a solo headliner in 1985 and with Edgar Winter in 1988 and 1989.