Friday, Feb 13, 2004

** Rising Tide Of Complaints **

Lawsuits involving former Rising Tide Productions partners Bill Reid

and Michael Lee have been delayed while a new team of attorneys takes

the reins for Reid and his company.

Lee, a former Cellar Door agent who left the firm with Reid to form

Rising Tide Productions in 1999, has sued his former business partner,

as well as Rising Tide Productions LLC, Rising Tide Holding Co. LLC

and Norva Productions LLC. He claims he was forced to resign from the

Norfolk, Va.-based business in 2001.

Lee says he lost his initial $45,000 investment in the company and

personal property. His suit alleges fraud and breaches of contract and

fiduciary duty. He is asking for damages including reimbursement of

his original investment and a sum to be determined by the court.

"Michael was one of the investors in the company who has not seen one

dime in this business (Rising Tide)" even though The NorVa venue has

been very successful, Lee attorney Adam Lotkin told Pollstar.

"Michael was forced to resign his position with the company after what

he deems to be ... a continued pattern of unprofessional and

unbusinesslike conduct on the part of the defendants."

Reid declined to speak on the record to Pollstar, citing an agreement

he says the two parties made not to discuss the case publicly. But his

attorney, Todd Fiorella, emphatically denied Lee's charges.

"It's a contract dispute," Fiorella told Pollstar. "Michael left the

employment of Rising Tide voluntarily. ... Rising Tide responds that

he is not entitled and, in fact, owes money."

Fiorella confirmed that a countersuit has been filed against Lee.

"There is a counterclaim that has been filed that concerns the

reimbursement of expenses. I don't think that this is an unusual suit

you see in these kinds of cases," he said. "[Lee] left voluntarily.

Employees, when they leave, are not always happy."

For his part, Lee said he regrets having to take his claims to court,

but felt he had no choice. And he acknowledged the claim filed against

him.

"I think [Reid's] countersuit against me is seeking $300,000 in

damages from me, saying I damaged the company by working there,

misappropriated funds and all sort of things," Lee told Pollstar.

"It was certainly never my intention to try to make this a public

spectacle or anything but I think [Reid's] had a number of chances to

do the right thing, but he hasn't done so," he continued. "It

basically left me no recourse but to go forward with this thing.

"It basically cost me everything. I had to sell my house and all my

investments and everything else just to pay bills. I've been unable to

get work in my field and it's been a life-changing experience," Lee

said, adding he hopes to return to the concert business once the suit

runs its course.

It may be a bit of a wait. With the change of attorneys, a date won't

be set for at least 90 days. Both sides said acrimony at the moment

doesn't bode well for successful mediation or settlement, and both

said they look forward to trial.

"We think we have a very strong case to show that Michael was harmed

significantly over the last few years," Lotkin said.

Fiorella countered, "We look forward to the opportunity to prove the

allegations false. Bill Reid is an upstanding member of the community

and there are allegations that are false, as they are to the other

members (of the corporation), and we intend to prove that."

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