Time Warner Sued for $50 Million by Morris : Entertainment: The former chief of domestic music claims he was fired without cause on eve of a scheduled promotion.

In the latest twist in the corporate turmoil at Time Warner Inc., Doug Morris, the firm’s former domestic music chief, sued the media giant for $50 million on Friday, contending he was fired without cause.

Morris, the fifth top executive forced out of the music division in the past 11 months, was abruptly discharged Wednesday following a management disagreement.

Time Warner Chairman Gerald Levin, who has been under intense pressure to reduce debt at the New York-based media giant, is believed to have already authorized payments exceeding $55 million to the other former executives. He is likely to face criticism if he has to shell out an additional $50 million--about what it would cost to start up a new record label.

Morris, who had more than four years remaining on his contract, according to the lawsuit, was dismissed two days before he expected to be promoted to chief executive of the firm’s global music division. The suit, which was filed in New York, alleges Time Warner refused to pay Morris what he was entitled to under his employment agreement.

A Time Warner spokesman said Friday: “Mr. Morris’ termination for cause is appropriate. Now that it’s in litigation, we won’t comment beyond that.”

According to the suit, Morris signed a contract with the firm on Dec. 5, 1994, to serve as chairman and CEO of Warner Music-U.S. until Dec. 31, 1999. The company also issued Morris a May 15 letter that allegedly promised that he would be promoted to president and CEO of the global music division by June 25.

Morris was informed of his firing at a meeting in New York that Michael Fuchs, the recently installed chairman of Warner Music Group, had scheduled to flesh out the details of the upcoming promotion announcement. Fuchs handed Morris a press release noting his termination, but gave no “cause” for his dismissal--a violation of his contract, according to the lawsuit.

In an interview Wednesday, Fuchs explained that his decision to fire Morris “was about chemistry inside the company.” Fuchs said he “had to make a profound change to make sure that the organization could grow.”

Morris received a letter dated Thursday, a day after the firing, in which the company allegedly tried to “retroactively alter the termination . . . alleging that it was for cause.” The suit says Warner failed to “even identify the supposed cause.”

The 56-year-old Morris, a former songwriter who has worked for Warner Music since 1978, claims that his employment contract provided for a $50-million payment if he was terminated without cause.

According to the suit, Morris’ lump-sum payment is based on salary, benefits, bonuses and stock options projected over a period of the next four years. Sources said a payment covering his projected salary alone would amount to about $20 million.

Morris’ dismissal came at a time when his music division was dominating the nation’s pop charts. The $4-billion conglomerate, which includes the Atlantic Group, Elektra Entertainment Group and Warner Bros. Records, has the best-selling album in the nation this week--by Hootie & the Blowfish--plus 23 other albums in the Top 200, with almost twice the market share of its nearest competitor.

Former Warner Music Group Chairman Robert Morgado, who took control of the music division in 1990, was ousted last month after a highly visible power struggle with Morris. Morgado reportedly negotiated a $40-million settlement with Time Warner.

A power struggle between Morgado and revered Warner Bros. music heads Mo Ostin and Lenny Waronker forced their exit this year. Elektra chief Robert Krasnow quit last year following a dispute with Morgado. Krasnow received about $7 million, sources said, while Ostin and Waronker are believed to have settled for a total of about $8 million.