Handshake deals and oral promises don’t get it done in the business world, as the following story illustrates. Getting “ink” in the business sections of the Los Angeles papers is the case where Richard Snyder, a friend of Warner Music CEO Edgar Bronfman Jr. was sued for $100 million by Snyder (a former head of book publisher Simon & Schuster) who claims Bronfman failed to pay him for conceiving the 2004 buyout of the music giant.

According to the story Bronfman said that since he and Snyder were “both honorable men,” no written contract was needed, the suit alleges.

For more than two years, Snyder said, they worked together on ventures. An attorney for Bronfman called the claims “absolute fiction.”

Snyder is seeking at least $100 million in damages based on what he said was Bronfman’s oral promise for “fair and equitable” compensation.

Bronfman’s attorney said Snyder was given free office space by Bronfman after leaving a publishing job but was never tapped to be an advisor.

And Bronfman allegedly told Snyder, “Dick, I would have done this deal with or without you. That’s the end of the discussion. Now you should leave.”

And Snyder says he initially proposed the Warner Music deal and helped arrange the financing by cultivating a relationship with bankers at Lehman Bros.

Needless to say, a contract between the two, even a memorandum of understanding, would have made the current situation considerably easier to solve. Whether a cash or barter deal, get it in writing.

This entry was posted on Wednesday, April 25th, 2007 at 7:59 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.