Financial Problems
Meanwhile Lumley had extended his interests by taking on in addition the management of the Théâtre des Italiens in Paris, and was soon negotiating with the actress Rachel and Victor Hugo. In short, his frenzied activities resemble all too closely the hubris of speculative tycoons overreaching themselves. Not surprisingly he began to have problems paying his stars and seems to have been astonished when they began to walk out on him. The soprano Johanna Wagner, niece of the composer Wagner, was lured to Covent Garden, sparking off a complex but fruitless litigation. The resulting case, 'Lumley v. Gye', is still regarded as a major source for employment contract law. It is referred to in teaching at major institutions, and is cited in contemporary litigation. Lumley won, but it was for him a pyrrhic victory, resulting in financial loss.
By 1853 the financial problems were overwhelming, and Lumley ran for cover to France. He was tempted back when in 1856, the Covent Garden Theatre once again caught fire, and for three years he was once again the arbiter of Italian opera in London. But when Covent Garden was rebuilt, (the same theatre that stands today), he was offered the tenure for £100,000 funds which he simply didn't have.
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