Manager Files a Countersuit in ‘Larry Sanders’ Battle

As Home Box Office’s critically lauded comedy “The Larry Sanders Show” begins its farewell season later this month, the courtroom drama involving those behind the program is getting into full swing.

Manager Brad Grey--sued by his former client and partner in producing the show, Garry Shandling, for $100 million in January--blasted back Wednesday with a $10-million countersuit, seeking to dissolve their partnership, acquire Shandling’s interest in the series and recover costs brought about by the comic’s alleged “aberrant and irresponsible behavior.”

The complaint filed Wednesday accuses Shandling of causing production delays through his “self-destructive conduct,” mistreating and arbitrarily firing valuable writers and staff and diminishing the program’s value by lessening the number of episodes produced as well as rejecting opportunities to create spin-off shows using characters from the series.

Grey’s suit marks the latest salvo in what has become a closely watched and bitter legal dispute--one that potentially has broader implications in Hollywood because Shandling has raised questions about the conflict of interest often facing talent managers. Shandling contends that by acting as a producer, Grey furthered his own interests at Shandling’s expense.

“This is just a smoke screen--a failed effort to divert public review of [Grey’s] breach of trust and his self-dealing,” said Shandling’s attorney, Jonathan Schiller, regarding the allegations.

After a 17-year association, Grey quit as Shandling’s manager in November. Six weeks ago, Shandling filed a $100-million lawsuit claiming Grey failed to protect Shandling’s interests while leveraging Shandling’s name and the prestige arising from “Larry Sanders” in building his production company and negotiating agreements worth roughly $200 million with Columbia Pictures, MCA and ABC.

“If you talk to the people at MCA, at ABC, they will tell you Garry Shandling had nothing to do with those deals,” said Grey’s attorney, Bert Fields.

Grey, partner Bernie Brillstein and associates contend Shandling responded like a “jilted lover” because Grey dropped him as a client. They have also suggested Shandling is jealous of success enjoyed by Brillstein-Grey Enterprises, which has become a major supplier of prime-time programming, including NBC shows “Just Shoot Me,” “The Naked Truth” and “NewsRadio.”

In addition to dissolving the partnership, Brillstein-Grey wants to buy Shandling’s partnership interest in “Larry Sanders,” minus damages incurred because of the comic’s alleged contractual breaches and erratic behavior.

At this point, the value of Shandling’s share remains unclear. Columbia TriStar Television, which will handle the sale of “Larry Sanders” reruns, is uncertain whether rights will be sold to individual TV stations--the most lucrative option--or a cable network. Industry sources say the latter is more likely, estimating the show might garner between $200,000 and $300,000 an episode from a cable buyer--a modest price by TV syndication standards.

Few cable-originated programs, such as “Larry Sanders,” have generated significant returns in syndication. However, the series has garnered considerable industry recognition, including five consecutive Emmy Awards nominations as outstanding comedy series.

“I was warned that Brad Grey was going to smear me, so I’m not surprised,” Shandling said through a spokesman, regarding the latest filing. “I’m relieved. I thought he was going to say I wasn’t funny.”

“This isn’t a case of smearing Garry Shandling. This is simply a statement of the facts,” Grey said.