Co-Founder of Ultra Sues to Regain Control of Popular Music Festival: What Went Wrong
By Kluger Kaplan March 19, 2013
By Philippe Lieberman
On Friday, downtown cleared out by lunchtime as employees fled in anticipation of Miami’s annual Ultra Music Festival. Co-founder Alex Omes sued his partners last week, claiming that he was fraudulently forced out of the company that produces the event during a secret shareholder meeting.
I previously blogged about the importance of written agreements in business relationships. According to the Daily Business Review, Omes and his partners operated without a written agreement for many years before signing a “memorandum of understanding,” memorializing the parties’ respective roles in the company and designating shareholders.
While it is impossible to insulate yourself against litigation entirely, it is important to have a written agreement memorializing business relationships from the outset. Although some balk at the idea, claiming it creates an “uncomfortable situation,” the best time to capture the intent of the parties and the goals of the business relationship in writing is when the relationship is at its best. Let this lawsuit between the Ultra founders serve as a reminder.