The Shuman Company Sues Literate, Alleging Breach of Contract

The Shuman Company sued one of its former partners, A.B. Fischer, who left the literary management and production company to launch a competing firm, Literate.

The suit, filed Thursday in Los Angeles Superior Court, accuses Fischer of soliciting Shuman’s longtime clients to join his new company while still working at the firm, in violation of his contract.

Fischer joined Shuman in 2015 and worked his way into literary management, according to the suit. In January 2017, he agreed to a three-year contract that entitled him to a bonus based on a percentage of the revenue his clients paid to the firm.

“Unbeknownst to the company, Fischer began to plan to leave the company in or around the summer or fall of 2017, in violation of his agreement,” the suit alleges. “And, upon information an belief, began to solicit business of long-standing clients of the company in violation of his duty of loyalty to his employer.”

Fischer informed Schuman of his plans to leave last November, and effectively resigned that same day. Public records indicate he incorporated the Literate that same month, and launched the boutique management and production company together with long-time friend Dennis Kim, in February, according to the suit.

Former clients who followed Fischer to Literate have instructed studios and talent agencies to stop paying Shuman, the suit alleges. Indeed, it contends Fischer told his clients to divert these payments.

Shuman’s civil suit accuses Fischer, Kim and Literate of interfering with its contracts with former clients, and asserts they’re not entitled to derive income from work Fischer negotiated before leaving his old firm. Indeed, Shuman argues it has “enforceable contracts” with these former clients that entitle it to these payments.

Fischer declined comment, saying he and his partner have not seen the suit.