At times, agents may be entitled to commissions when those they represent engage in other business opportunities. One such instance has led Darrelle Revis, cornerback for the New York Jets, to take legal actions against his agents.
According to ESPN, Revis recently filed a lawsuit in Westchester County Supreme Court which accused Jonathan Feinsod and Neil Schwartz of fraud, conversion, breach of fiduciary duty and civil theft. In the suit, Revis claimed that Schwartz and Feinsod failed to inform him of a clause in a beverage endorsement agreement which specified that the agents’ fee would be 50 percent instead of 10 percent.
Disclosing the agreement details
The filing stated that Schwartz and Feinsod set up a system through which so that all proceeds from an agreement between Revis and Healthy Beverage, LLC would be sent directly to the two of them, in violation of conventional practices. Typically, Revis would receive the funds and then appropriate them to his agents based on their standard fees.
Court documents provided by Courthouse News revealed Schwartz and Feinsod also hired a law firm, Wilentz, Goldman, & Spitzer to work on behalf of Revis on the energy beverage agreement, but prevented the firm from sending a retainer contract for legal services to Revis. His agents did so for the purpose of relieving Wilentz’s fiduciary obligation to inform Revis of the Healthy Beverage agreement’s payment arrangements.
Basically, the lawsuit claimed Schwartz and Feinsod intentionally kept the cornerback in the dark. In addition, the agents structured the relationship so that Healthy Beverage would pay Wilentz’s legal fees directly from financing that was supposed to go through Revis first.
Breaching legal trust
Schwartz is actually a licensed attorney in New York. The court documents revealed Schwartz, who had represented both Revis and the cornerback’s limited liability company Shavae, claimed he had never worked on their behalf as a legal representative.
The filing acknowledged Revis’ disbelieve that “a person who had been his lawyer for about nine years, a person he had trusted totally, had taken advantage of him, stolen from him, and refused to return the misappropriated funds.” As Revis was unaware of the agreements Schwartz developed with respect to the Healthy Beverage endorsement, the athlete continued to allow Revis to represent him in contractual matters, including negotiations regarding Revis’ contract with the New York Jets.
As imagined, Revis has fired Schwartz (his former) attorney and has sought and obtained other legal representation.
Are you an athlete seeking legal representation? Do you have any questions? Would you like to discuss the matter further? If so, please contact me, Anthony Caruso, 201-806-3364.
Eviction Is Not Always the End: Understanding Post-Possession Rent Claims in New Jersey and New York
No. An eviction does not automatically end a tenant’s obligation to pay rent. Post-eviction rent claims are common because recovering possession resolves who has the right to occupy the premises, but it does not extinguish the tenant’s contractual obligations under the lease. Whether unpaid or future rent remains owed depends on three factors: the lease’s […]
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A corporate attorney advises businesses on formation, ownership, governance, contracts, transactions, compliance, disputes, and the legal risks that arise as a company grows. The role is not limited to filing documents or reviewing agreements. A corporate attorney helps a business understand when a commercial decision has legal consequences, how to structure that decision properly, and […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
