In a sequel to the “JT LeRoy” literary scandal, the perpetrator of one of publishing's most infamous hoaxes has sued her publisher for using her royalties to pay the settlement of a lawsuit related to the fraud.

"JT Leroy"

JT LeRoy was the supposed, 19-year-old author of “Sarah,” the semi-autobiographical” story of a boy growing up in the sordid world of truck-stop prostitution. Media reports exposed JT LeRoy as Laura Albert, a struggling writer whose mother did not turn tricks for truckers.

A New York jury in 2007 awarded $116,500 in damages against Albert for duping a film company into optioning the rights to “Sarah” by falsely representing that her JT LeRoy pseudonym was a real person. Antidote International Films had earlier reached a settlement with Albert's publisher, Bloomsbury USA.

Now Albert has sued Bloomsbury, alleging it breached her author's contract by settling the Antidote case without her consent, failing to inform her of the terms of the settlement, and charging the amount of the settlement — at least $131,573.60 — to her royalties from “Sarah” and another book, “The Heart is Deceitful Above All Things.”

“Pursuant to the terms of the Sarah Contract,” Albert says in her complaint,

Plaintiff was charged with the amount of the settlement and expenses only if Defendant had received Plaintiff's prior approval and/or permission for the settlement, and if no such approval and/or permission had been received, Defendant was responsible for the amount of the settlement and expenses.

Albert is claiming damages in the amount of unpaid royalties and “the improper Antidote Settlement charge of $131,573.60."

The dispute may seem academic since, according to royalty statements, Albert has only earned about $6,400 from her books. But she alleges Bloomsbury has failed to give a “detailed accounting” of her royalties and she is also seeking to terminate her contract with the publisher so the publishing rights to her books will revert to her.

"Laura Albert would like to recover the rights to her books ... Will you give her a 'divorce,' please?” Albert attorney M.J. Bogatin asked Bloomsbury in an April 7 letter.

Authors from George Eliot to Lewis Carroll have used pseudonyms. But as part of her elaborate deception, Albert even had her sister-in-law, clad in black hat and blonde wig, appear as the androgynous JT LeRoy at public events with Albert by her side as JT's keeper “Speedie.”

On top of the jury award in the Antidote fraud case, the trial judge ordered Albert to pay Antidote $279,175 in attorney fees. She dropped her appeal of the judgment in July 2009, apparently after reaching a settlement with the film company.

Albert's contract with Bloomsbury USA, a subsidiary of a British publisher, contains a standard indemnification clause that shields Bloomsbury from liability for “any claim ... which alleges facts contrary to or inconsistent with any of the representations and warranties made by the Author in this Agreement.”

Bloomsbury has said in a letter to Albert's lawyers that she “is legally responsible to Bloomsbury for expenses and judgments incurred in the Antidote litigation.” It could argue the indemnification clause applies because Antidote alleged, among other things, that “JT Leroy” was not the true author of “Sarah.”

Albert's contract was actually signed with the name “Jeremy LeRoy” and it also represents that “Sarah” is a work of “non-fiction.” Bloomsbury has said it did not know JT LeRoy was not real.

But Bogatin wrote Bloomsbury in April that even “if the indemnification did apply, the Agreement requires that the Publisher solicit the Author's consent to the settlement. In this instance Bloomsbury did not even advise the Author of the settlement.”

During the Antidote trial, Albert's lawyer told the jury that she was physically and sexually abused as a child and developed her JT LeRoy alter ego while posing as a teenage boy in therapy.

By Matthew Heller
12/3/10