TStar: Theatre titans stage legal fight
May. 8th, 2008 03:05 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
hesTheatre titans stage legal fight
David Mirvish buys Canon, Panasonic sites, spurring lawsuit from rival Aubrey Dan
May 08, 2008
Richard Ouzounian
Theatre Critic
It started out like Twelve Angry Men and ended up like We Will Rock You.
That's how the legal battle between Toronto theatre titans David Mirvish and Aubrey Dan played out yesterday. The men brought their fight for two Toronto theatres into the public eye when a morning news release from Aubrey Dan revealed he had commenced legal proceedings against Toronto's Mirvish Productions and New York-based Key Brand Entertainment.
At issue was the sale of the Panasonic and Canon theatres to Mirvish, which Dan claims is in violation of the management agreement his company, Dancap Productions, had signed with Key Brand.
Last fall, after Dancap bought a stake in the company, it was granted authority to manage the Canon and Panasonic theatres in exchange for a considerable equity investment in Key Brand's takeover of the North American theatrical assets of Live Nation Inc.
Mirvish Productions, on the other hand, was in possession of a 15-year co-presenting lease from the SFX Theatrical Group – the predecessor to Live Nation. The company believed that gave it virtual control of the buildings in question.
Both sides were unhappy with the situation. Mirvish threatened Key Brand with litigation in January over the Dancap deal, but did not proceed.
However, Dancap has since learned that on Feb. 11, Mirvish made an offer to Key Brand to purchase the theatres, which would end the stalemate.
That offer was kept secret from Dancap and other board members until April 9, five weeks before it was to go into effect yesterday, according to statements filed in court.
"I was completely blindsided," a distressed Dan told the Star yesterday.
"By my purchases, I became a director of Key Brand and you can't sell the company's properties without consulting the board."
That's not how Key Brand CEO John Gore saw matters.
"Nothing in Key Brand's agreement with Dancap in any way restricts our ability to sell the Canon and Panasonic theatres to Mirvish."
Dan spent decades working in the generic drug world. He boasts that "I grew up in an environment where going to court was like going to the bathroom," and says he's fully prepared to take legal action.
In the end, Dan says he was betrayed by John Gore. "I never would have dreamt of this kind of behaviour from him. I've been deceived by him."
Gore refused to comment on that statement.
The final twist in the day's proceedings was left to David Mirvish. He called a press conference at the Canon Theatre for 5 p.m. and the media in attendance all expected some kind of ringing denouncement of Dan's lawsuit.
He came out smiling, cheerfully announcing his purchase of the two theatres, as the cast of We Will Rock You, in costume, surrounded him.
He told us that the show had to close because of other bookings at the Canon.
But he was going to reopen it on July 16 at the Panasonic Theatre instead.
The show's star, Yvan Pedneault, led the company in singing "We Are the Champions."
Mirvish lingered in a theatre aisle long enough to make his major point.
"I was told that the theatres were for sale and so I bid on them in good faith," he said, voice quivering.
"I would never encourage anyone to breach their contracts."
David Mirvish buys Canon, Panasonic sites, spurring lawsuit from rival Aubrey Dan
May 08, 2008
Richard Ouzounian
Theatre Critic
It started out like Twelve Angry Men and ended up like We Will Rock You.
That's how the legal battle between Toronto theatre titans David Mirvish and Aubrey Dan played out yesterday. The men brought their fight for two Toronto theatres into the public eye when a morning news release from Aubrey Dan revealed he had commenced legal proceedings against Toronto's Mirvish Productions and New York-based Key Brand Entertainment.
At issue was the sale of the Panasonic and Canon theatres to Mirvish, which Dan claims is in violation of the management agreement his company, Dancap Productions, had signed with Key Brand.
Last fall, after Dancap bought a stake in the company, it was granted authority to manage the Canon and Panasonic theatres in exchange for a considerable equity investment in Key Brand's takeover of the North American theatrical assets of Live Nation Inc.
Mirvish Productions, on the other hand, was in possession of a 15-year co-presenting lease from the SFX Theatrical Group – the predecessor to Live Nation. The company believed that gave it virtual control of the buildings in question.
Both sides were unhappy with the situation. Mirvish threatened Key Brand with litigation in January over the Dancap deal, but did not proceed.
However, Dancap has since learned that on Feb. 11, Mirvish made an offer to Key Brand to purchase the theatres, which would end the stalemate.
That offer was kept secret from Dancap and other board members until April 9, five weeks before it was to go into effect yesterday, according to statements filed in court.
"I was completely blindsided," a distressed Dan told the Star yesterday.
"By my purchases, I became a director of Key Brand and you can't sell the company's properties without consulting the board."
That's not how Key Brand CEO John Gore saw matters.
"Nothing in Key Brand's agreement with Dancap in any way restricts our ability to sell the Canon and Panasonic theatres to Mirvish."
Dan spent decades working in the generic drug world. He boasts that "I grew up in an environment where going to court was like going to the bathroom," and says he's fully prepared to take legal action.
In the end, Dan says he was betrayed by John Gore. "I never would have dreamt of this kind of behaviour from him. I've been deceived by him."
Gore refused to comment on that statement.
The final twist in the day's proceedings was left to David Mirvish. He called a press conference at the Canon Theatre for 5 p.m. and the media in attendance all expected some kind of ringing denouncement of Dan's lawsuit.
He came out smiling, cheerfully announcing his purchase of the two theatres, as the cast of We Will Rock You, in costume, surrounded him.
He told us that the show had to close because of other bookings at the Canon.
But he was going to reopen it on July 16 at the Panasonic Theatre instead.
The show's star, Yvan Pedneault, led the company in singing "We Are the Champions."
Mirvish lingered in a theatre aisle long enough to make his major point.
"I was told that the theatres were for sale and so I bid on them in good faith," he said, voice quivering.
"I would never encourage anyone to breach their contracts."