Former Executive Sues MCA Unit Over Firing

A former executive of MCA Distributing Corp. filed suit in Los Angeles Superior Court on Friday, claiming that he was wrongfully fired last year because MCA Records executives learned that he was gathering evidence about alleged “improprieties” at the company.

George Collier, formerly West Coast regional director for MCA Distributing, the manufacturing and distribution arm of the record company, claims that, at the time of his firing last June, he was doing “detective work” about the activities of several company vice presidents who, he alleges, were improperly sending “thousands” of free records to two retail accounts in the Los Angeles area.

The lawsuit, which names as a defendant Los Angeles-based MCA Inc. and seeks $5 million in damages, claims that Collier became suspicious of the shipments because the records supposedly were being given away for promotional purposes but, on orders from the vice presidents, they contained no markings prohibiting their sale through normal retail channels.

Denies Allegation

As so-called cleans, the records “had a negotiable quality to them,” the lawsuit alleges, meaning they could be sold in the record stores at full price or returned to MCA for full credit even though they hadn’t been purchased in the first place.

Allen Susman, a partner in the Los Angeles law firm that acts as MCA’s general counsel, said the company denies that Collier was unfairly fired.

“He was fired for cause,” Susman said. He declined further comment.

Collier’s suit alleges that Nottingham Industries and Show Industries, which operates the 37-store Music Plus record chain, were the retailers receiving the free records.

Show Vice President David Berkowitz made no immediate comment on the lawsuit. Nottingham owner Lloyd Hetzer did not return a reporter’s phone calls. Both companies are based in Los Angeles.

Collier claimed in an interview that, during one 60-day period in 1984, Nottingham received 5,500 free “clean” singles from MCA and that Show received 2,100 free “clean” albums.

Copyright Infringement Suit

He said company documents show that both retailers returned a high number of records to MCA during the first five months of 1984.

Separately, MCA Records filed a copyright infringement lawsuit in U.S. District Court late Thursday against a number of companies and individuals that it alleges were involved in the recent counterfeiting of MCA’s budget-line cassettes.

Among those named in the counterfeiting suit are John La Monte, who once served a prison term for counterfeiting, and his company, Out of the Past, based in Upper Darby, Pa.

Also named in the lawsuit is Sam Passamano, former vice president of distribution for MCA Records who was fired last December after 34 years with the company, and his current employer, Viking Records in Burbank.

Susman, the MCA lawyer, said the counterfeiting suit “represents the first of a number of legal steps MCA Records is taking to combat the recent flagrant misuses of its product.” Will Dwyer, the Collier attorney who also represents Passamano, said: “I’m delighted with the suit. I can’t wait to get into court on this.”

La Monte’s lawyer, Dennis Eisman, said all of the MCA records and tapes that Out of Past handled were “legitimate, licensed product for which MCA received payment from the licensees.”