Tommy Tune Sues Manager, Marvin Shulman
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Tommy Tune claims his manager Marvin Shulman took him for a long, expensive ride, overcharging for commissions, taking a commission even on the sale of Tune's home and his capital gains, and outsourcing management duties to third parties, using Tune's money to pay for services for which Tune already had paid Shulman.
Tune, of New York, a singer, actor, dancer, choreographer and director, says he has won nine Tony Awards and a plethora of other accolades. Shulman operates his co-defendant business, Marvin Shulman Management, out of Miami.
Here is an excerpt from the federal complaint: "(A)fter unlawfully persuading Mr. Tune to pay them a business management commission far in excess of industry norms through misrepresentation and breaches of fiduciary duty, defendants assessed commission charges against Mr. Tune in excess of even that inflated amount and, in derogation of the parties' agreement and governing securities regulations, paid themselves commissions on Mr. Tune's capital gains, including the proceeds realized on the sale of his residents. Defendants also improperly 'outsourced' to certain third parties a number of the central business management functions that Mr. Tune engaged defendants to perform, and then wrote checks from Mr. Tune's funds to pay for the fees charged by these third parties for the very services that Mr. Tune was already paying defendants."
Tune demands an accounting and damages for breach of contract, breach of fiduciary duty and unjust enrichment. The complaint does not estimate the damages, other than to say they exceed $75,000. Tune is represented by John Rosenberg with Rosenberg & Geiger.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.