Verbal contract subject of dispute between singer and company

| Nov 18, 2020 | Entertainment Law |

Like many other entertainers, singers rely heavily on their management companies to oversee a wide range of responsibilities. In return, the management companies receive commissions or other payments from their clients.

Today, a highly popular and well-known singer faces a lawsuit brought against her by her management company with which she engaged in only a verbal agreement. Interestingly, the company is owned by the father of the singer’s husband, from whom she is now separated.

Verbal, not written agreement

As explained by ETOnline, the company represented the singer for 13 years without a written contract in place. Now, both parties have made allegations about wrongdoing. It remains unclear at this time how the lack of any written contract may contribute to the outcome of the growing dispute.

Initial suit requests $1.4 million in commissions

A lawsuit filed on the part of the management company a couple of months ago alleges that the singer paid the company $1.9 million in commissions thus far this year but still needs to pay another $1.4 million.

Singer alleges violations by management company

According to the New York Daily News, the entertainer has filed a counter lawsuit alleging that the management company violated multiple labor codes and also failed to maintain accurate records.

Among the labor code violations, the singer insists that the company did not post required fees as required nor did they post a mandated surety bond. The singer also asserts that the management company did not properly handle licenses or agreements with talent agencies. Other disputes center around the management company’s procurement, offers or promises related to licenses.

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