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Friends of Loew's in New Jersey allege breach of contract claims

In New Jersey, Loew's Theatre has been a mainstay for the better part of a century. Located in Jersey City, the landmark building that was once thriving has taken a turn for hardship in recent years. Now, the city is hoping to revitalize the property, but their move is causing a cry of breach of contract claims from a nonprofit. The organization, Friends of Loew's (FOL), alleges breach of contract claims that stem from the fact they believe the city does not have the right to allow Loew's to be run by an entity other than FOL.

Until now, FOL has been allowed to manage the Loew's Theatre for a $1 per year rental agreement fee. However, the city alleges that this arrangement has been untenable and that new management needs to be in place to restore Loew's. Thus, the city is seeking to hire a company to put Loew's on the map again.

As the bidding for Loew's continues, FOL is pursuing its lawsuit. FOL and the city are scheduled for a court date soon to determine the legality of each side's claim. In the meantime, the city is moving ahead with its plans to infuse "new blood" into the Loew's project.

FOL's breach of contract claims its $1 annual lease is still valid, while the city claims it is not. For the past few years, FOL has scheduled all the programming that has taken place at Loew's, most of it involving local New Jersey groups. If new management takes charge at the landmark theatre, the understanding is FOL would only be allowed 20 days of their type of locally based events per year. Groups which feel that another party has breached a contract have the right to seek fulfillment of relevant clauses in civil court.

Source: nj.com, "World's biggest concert promoters vie to restore classic Loew's in Jersey City", Terrence T. McDonald, May 1, 2014

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