You are on page 1of 25
REO VIRGINIA: IN THE CIRCUIT COURT FOR THE CITY OF PORTSMOUTE 2019 WUH2| PH 2223 INTEGRATED MANAGEMENT GROUP, LLC cys ih trading as IMGoing, circuit Plaintiff, v. CITY OF PORTSMOUTH, VIRGINIA Serve: Solomon Ashby, City Attorney 801 Crawford Street Portsmouth, VA 23704 Defendant. COMPLAINT NOW COMES Integrated Management Group, LLC, trading as IMGoing (“IMGoing”), by counsel, and for its Complaint against the City of Portsmouth, Virginia (“City”) states as follows: Statement of the Case 1, This is a breach of contract action seeking damages to IMGoing calised by the City’s failure to meet its obligations to make available in good working condition the Harbor Center Performing Arts Center, commonly known as “the Pavilion,” so that IMGging can effectively manage and operate the facility, including obtaining sponsorships, booking artists for shows, selling individual and season tickets, hosting shows and operating concession and merchandise sales for events. 2. The City constructed the Pavilion and engaged IMGoing to manage it to create a positive economic impact to the City. IMGoing has been a valuable partner to the City for over a decade managing the Pavilion for benefit of both parties. 3. In May of 2018, the City leaned of a crack in the support mast for the Pavilion. Since that time, the City failed to make available the Pavilion in good working order to IMGoing causing IMGoing to incur significant damages. As detailed below, the City's inac} mismanagement has caused harm to both parties and forced this litigation. Jurisdiction and Venue ion and 4, The City is a municipal entity created and existing under the laws ahd Constitution of the Commonwealth of Virginia. “ 5. IMGoing is a Virginia limited liability company with a principal pl located in Virginia Beach, Virginia, IMGoing is a registered fictitious name for Ip ‘Management Group, LLC. of business tegrated 6. This Court has jurisdiction over the parties and venue is appropriate because the events giving rise to the Complaint took place, in part, in Portsmouth, ‘The Management Agreement 7. The Pavilion is an outdoor amphitheater entertainment venue locat property. It consists of a stage, seating for approximately 6,500 guests, ancillary grounds, side stage areas, and parking facilities, Importantly, the teserved seatin don City uildings, plaza for the main stage is intended to be covered by a tensile fabric roof membrane, which is suppotted by a main mast truss-type structure with associated support wires. 8 IMGoing is a full-service entertainment company providing live hperionces and is an industry leader in the production, booking, and marketing of live entertainment events. IMGoing has developed a national reputation by creating premier concerts and event experiences and for its skilled management of the Pavilion. 9. IMGoing has successfully managed the Pavilion since the 2006 corpert season. It has a long track record of booking and hosting nationally-known artists, securing jame-in-title and other sponsors, selling season and individual tickets, managing concessions ar{d merchandise sales, and all other aspects of event management at the Pavilion, 10, IMGoing hosts events at the Pavilion on a seasonal basis typically and October of each year, 11, The City and IMGoing entered into a'new management agreement jetween April ith an effective date of January 2, 2016 (“Management Agreement”), For purposes of this Complaint, key provisions of the Management Agreement include the following: a, IMGoing is the sole and exclusive manager, promoter and op. Pavilion, (Section 1.1.a) b. The City retains ownership of the Pavilion and is responsible t facility in good working order, and that itis to be tumed over tumkey status and ready for operation. (Section 4.1). tor of the keep the IMGoing in a ©. The City shall be solely responsible for maintaining the Pavilion and keeping it in good working condition, at its sole cost and expense. The City is responsible to ensure that the Pavilion is in compliance with all applicable laws, including applicable building codes, (Section 6.2) 4. IMGoing generates revenue by operation of the Pavilion, including from ticket sales, parking fees, sponsorship revenue, concessions ani sales, which it shares with the City. (Article 2) merchandise