This week a trial between long-time friends is set to begin in the Central District of Los Angeles County. Famed radio and television personality, Adam Carolla, will be defending himself and his company, Lotzi Digital, Inc. against claims of contract breach.
Donny Misraje, who has been friends with Carolla since their childhood, sued him in January 2013 over the disputed ownership of the podcast “The Adam Carolla Show.” In 2009, Adam Carolla had already developed a significant fan base through his various entertainment ventures from “The Man Show” to his CBS morning radio show. Once CBS decided to convert the radio station to all music, Carolla pursued podcasting to maintain contact with his fan base while keeping the option of other projects available. Misraje claims he pushed Carolla into podcasting, and that he had an agreement with Carolla regarding his role as a part-owner.
Misraje alleges that he was promised a 30% stake in the company Carolla created to manage the podcasts. Relying on this agreement, he and his wife quit their jobs and worked full-time with Carolla on the podcasts. As Carolla sees it, he was happy to have his friend help him get the podcasting off the ground, but he never offered partnership. Carolla argues that he offered Misraje 30% of profits while he remained working on the podcasts. Carolla also relies on the fact that Misraje never shared in the losses involved with running the podcast. He only shared in the profits.
Carolla eventually had to fire his long-time friend due to his disputed role in the company and his questionable business practices. Misraje now seeks his fair share, which he claims has been difficult. He likens the dispute to an argument with a family member and stated, “I can’t begin to tell you how bad I feel. That’s the hard part, that the relationship is over.” Carolla has not made a statement, however his attorney, Mark Geragos, claims Misraje is “just a hanger-on, trying to cash in on an old friend.”
With a jury having been selected on Tuesday, the trial is set to begin Wednesday, September 3, 2014 in front of the Honorable Michael Johnson.