Hulk Hogan’s breach of contract suit dismissed
By Pankaj Ladhar of Manos • Alwine P.L.
Many performers enter into contracts with managers without fully understanding the scope of the contractual obligations both on themselves and on their new managers. Generally an entertainer simply wants to be able to focus on their acting or singing, while the manager takes care of the details in a way that promotes the best interest of the performer. Many times this works out well for both parties. But when either side misunderstands the scope of the obligations it can mean that each side’s expectations of the other may not be accurate.
Former professional wrestler Terry Bollea, better known as Hulk Hogan, filed a lawsuit against his former manager claiming a breach of contract because he claimed she did not acquire sufficient insurance coverage to protect his assets. As you may know this case is a little more complicated because his former manager is also his ex-wife.
The issue arose after Hogan’s son was driving one of Hogan’s cars and was in a car accident. The passenger in the car was seriously injured and left in a vegetative state. The final settlement between Hogan and the family of the injured victim was not released, but it was reported that the automobile insurance policy limited coverage to $250,000 likely much less than the cost of the settlement.
Hogan claimed in his lawsuit that as his manager, his ex-wife had a fiduciary duty under Florida law to understand the potential liability risks facing the family and if necessary provide insurance or other tools to mitigate the risk to the family’s assets.
The lawsuit was dismissed this week though without reaching the underlying substantive issues. Instead the judge determined that the Marital Settlement Agreement between the parties, that was part of their divorce, released the ex-wife from any additional potential liability.
Source: Fox News, “Hulk Hogan’s breach of contract lawsuit against ex-wife thrown out of court,” Hollie McKay March 15, 2012