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Appeals Court Upholds House of Blues' Bid Petition

April 23, 2001|JEFF LEEDS

A California appellate court ruled last week that the House of Blues' concert promotion firm was within its rights when it financed a 1999 drive to hold a referendum on whether the rival Nederlander company should be awarded an extension on its contract to run the city-owned Greek Theatre.

The ruling upheld a Superior Court judge's decision to dismiss a $5-million lawsuit Nederlander had filed against House of Blues. The appellate court found that, contrary to Nederlander's argument, the extension approved by the Los Angeles City Council had not taken effect when House of Blues delivered its petition for a ballot referendum.

The council later rescinded the extension and put the contract out for competitive bidding.

Only House of Blues and Nederlander responded, and the board overseeing the Greek deadlocked several times before throwing out both offers in February and starting the bidding process again.

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