Tuesday, October 13, 2009

Judge tosses Signature suit -- Traynor: 'No breach of contract' found in group's fight over design of amphitheatre

RICHARD PRIOR
richard.prior@staugustine.com
Publication Date: 10/10/09


A St. Johns County judge has decided there was no breach of contract over management of the St. Augustine Amphitheatre because there was no contract.

Signature Entertainment, of Ponte Vedra Beach, thought it had a deal with the county, but, instead, was responding to a "request for proposal and not an invitation to bid," Circuit Judge J. Michael Traynor wrote in his Oct. 6 ruling.

"(T)he selection of (Signature Entertainment) was simply an agreement to negotiate a contract and not the forming of a contract between the parties."

Traynor dismissed Signature's complaint "with prejudice," meaning it cannot be refiled.

That hasn't necessarily discouraged Bruce Lucker, the company's president and CEO.

Lucker said Friday that his attorney is examining the decision, and, "We are evaluating our legal options."

He said he was "not concerned, but surprised" that the judge had ruled he couldn't refile the complaint.

Not surprisingly, St. Johns County Attorney Patrick McCormack was pleased with the ruling.

"The county is gratified for the well reasoned decision rendered by the Court in this matter," McCormack said. "Furthermore, taxpayer dollars will be saved."

As it dismissed Signature's proposal, the County Commission decided in March 2007 to have the Parks and Recreation Department manage the Amphitheatre.

According to the County's financial projection, Signature would bring in more money than the County could but would also have more expenses.

The expectation was that Signature would lose $341,000 in its first year, while a County-run facility would lose $116,000.

Signature notified the County Commission in April 2007 that it was due $575,000 in "expenses and lost profits" after the company was dropped as the proposed manager.

"We were not treated fairly, honestly or ethically (by the County Commission)," Lucker said at the time. "We were told to negotiate a contract, and we hired an attorney (who) negotiated every single segment of that contract.

"We spent an inordinate amount of money."

Under the anticipated terms of an agreement, Signature was to be paid $96,000 per year for the first five years of managing the Amphitheatre. Five years of lost salary made up most of the damage amount, Lucker said at the time.

Legal fees made up the rest.

McCormack cautioned the company two years ago not to pursue a suit, saying its claims were "without legal merit."

"We tried to avoid litigation here," McCormack said Friday. "We presented to them the reasons why we felt that the County had a strong position.

"My opinion at the time was, 'Just say no.' I didn't think they had a claim.

"But we hired outside counsel to review the matter, to basically give us a second opinion. And we invited them to get a second opinion."


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