Hello!

I really hate that my first post in this forum is a problem, but we have a problem. And before anyone says "You needed it in writing", please hear me out.

In January of 2006, I was approached by a local dance instructor to see if I wanted to help out with starting a community theater in our town. My 20 years of stage experience with her 40+ years in dance and show was a good combo. We decided to do SMOKE ON THE MOUNTAIN.

She knew of a local eating place that had a huge stage that we could use. They also put up the initial investment over the rights of the show. However, the our city matched it on a fine arts grant, so we were now already breaking even and the initial risk was over. Over the next few months, we all discussed the fact that we would become non-profit after our first show. While the place served food, we weren't considering a "dinner theater" at first but decided that we should and it was a major success. We even did 2 extra shows without dinner and the crowd just bought food on their own.

The production was a smash hit. The actors, director, musical director and everyone involved in the production did not get paid. I was the director and even played the Pastor and just invested all my time into it for the love of the art and to raise money for future shows.

We made over $5900.00 but the place said after their expenses (payroll, food investment for the dinner theater shows, etc) that the profit was $3800.00. While we have requested a run down of these numbers, the owner has also said that they need to keep the majority of the remaining "profit" because they had the initial risk. With the city matching the funds, the risk was gone.

He has asked us what we think is "fair". Again, we are in the process of being non-profit and we expected all funds to go to our new and successful theater. He said he is in it for the money and expects most of it.

NOTHING, either from our end or his end said (in writing) who gets what with the early understanding that we throw most of it back in the theater. (we have him in email saying it would go back to the theater group.)

We believe he is just getting greedy because this was a smash hit. If he wants to take the profit, then I believe he needs to pay the people who made it happen (actors, directors, etc) or give is all the money. With SMALL CLAIMS being a last resort, what do you all suggest?

Sincerely,
Brian

Just a wee point!
Was there calculated into the admission a  separate cost for the show & the dinner?
If there was, it would be easy to work out what he would be entitled to keep as the dinner money & the theatre gets the admission to the show.
In most pub shows this is how it is split up normally & the use of the venue is covered by the bar takings.
Or was the food charged separately to each of the dinners?
There would have been no risk on the restaurants part, if the food was covered in the price. Also with him paying the rights & supplying the venue, this would have been cheap advertising for the business the show generated. Any grants & sponsorship your group may receive has nothing what soever to do with the owner.
Frankly as suggested you may have to put this down to experience & find another venue. But I would certainly let the local rag know or at least threaten to let them know what has transpired. If it goes that far to also give a hint of planning further dinner productions elsewhere - then see what happens & which way he jumps!

Rather than going to small claims court another option might be to hire an idependent accountant (or your legal society might be able to find one) who is empowered to examine Mr. Cook's books and records to see where the money went.   However, the cost of the accountant might easily absorb any profits you might win back.

I'm no lawyer but I have to agree with the previous posters -- without an existing contract you'll have a hard time collecting the money -- even if you do go to small claims court.

The matching funds provided by the city certainly reduced the venue owner (let's call him Mr. Cook) risk, but now he can claim (despite whatever rental fees he might tack on) using his place of business put extra demands on his electric bill, his water bill, his maintenance, his waste management, his insurance liabilities, his employees and dozens of other "hidden costs" and thereby claim entitlement to any profit.

Plus the fact that without Mr. Cook's building or facility (and his initial investment to purchase the rights to the show) a judge could easily claim that your production wasn't viable without Cook's cooperation.

Since Mr. Cook is operating a place of business and not a charity he would be expected to enter into this venture for a profit.  If, however, you were staging this show to benefit a charity (and not doing it to try and establish a non-profit organization that has no paperwork) then Mr. Cook would be foolish to try and abscond with the money as that would certainly make him look greedy.

No matter how this turns out, your group will need to seek another venue anyway (do you really want to work with Mr. Cook again?)Again, chalk it up to a hard lesson in experience and the reality that not everybody is into theater simply because they love it. 

G?donya Brian!
Let us know how it turns out & if Mr Chook actually fronts up?
What Mr chook [oops Mr Cook?] has to realise is there are 3 types of contracts that can be made. The best being a Written one of course. Then there is a Verbal & Implied contracts, which have varying degrees of being able to be enforced. But they are all valid contacts no matter how they come about or actioned. Only you have to well & truly prove the latter two!
Go for the full chop & this gives you room to settle back on compromise amount.
But ensure your have the paper work to satisfy & acquit  the grant expenditure, because this is the bottom line they will be looking to audit!

Good luck at he meeting with Mr Crook