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.
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
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!
