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Poetry nightclub, shown in this file photo, was inside the Forum Shops at Caesars above Wolfgang Puck’s Chinois restaurant.
Thursday, March 12, 2009 | 3:21 p.m.
Beyond the Sun
- Un-poetic justice (9-25-2008)
Since August 2007, the gate that separates the Forum Shops from Caesars Palace's casino floor has been shut on the days Poetry operates. Poetry guests must enter through a side door and walk down a "littered service hallway," Poetry owner Mike Goodwin said.
A federal judge on Thursday decided to allow Wolfgang Puck’s Chinois restaurant and the Poetry nightclub to move forward with their discrimination lawsuit against Caesars Palace and Simon Property Group.
The lawsuit accuses Caesars Palace and Simon Property Group of unfairly blocking the entrance to Poetry, which is leased through Chinois, because it attracts a majority-black clientele. Simon Property Group operates the Forum Shops where Poetry is located.
U.S. District Court Judge James Mahan said Thursday he will hear Poetry nightclub's discrimination claims against its landlords.
Since August 2007, the gate that separates the Forum Shops from Caesars Palace’s casino floor has been shut on the days Poetry operates. Poetry guests must enter through a side door and walk down a “littered service hallway,” Poetry owner Mike Goodwin said in a statement.
Goodwin alleges in the lawsuit that Simon chief executive officer David Simon began this battle.
In October 2007, Simon-owned Forum Shops LLC filed suit against Phase II Chin, the company that owns and operates restaurant Chinois, who Goodwin partnered with to open OPM, which is now called Poetry. That lawsuit alleged that Chinois subleased the space and misrepresented the nature of the club it intended to open.
Goodwin and Chinois fired back in January 2008 against Simon Property Group and Caesars Palace alleging Simon always knew the nature of OPM and that the landlords “seek to force OPM [now Poetry] out of business because … it attracts ‘too many’ African-Americans, to the Forum Shops and the Caesars Palace complex generally.”
The suit continues on to say that the Forum Shops’ common areas are to “remain open to the public 24 hours per day, 7 days per week,” though the mall closes at 11 p.m. Sunday through Thursday and midnight Friday and Saturday.
I've read previous news stories on the access issue for Poetry/OPM, including comments by customers of the night club, who apparently get a clear message that they are not welcome in the mall.
Assuming that the night club plaintiffs are able to get a jury composed of people of good will, I rate this case at a 100% chance of loss for Caesars and Simon. In addition, I am convinced that the judge will use his equitable powers to issue an injunction against the continued discrimination against the night club's customers and owners. If I were Caesar's and Simon's management I would be carefully evaluating the possible measures of money damages for the night club, and whether the plaintiffs can recover their attorneys fees under the sublease and lease.
Juries hate pedantic breach of commercial lease cases, so Caesars and Simon should not have any faith in their original breach of lease lawsuit against Chinois and the night club operator. Regardless of the technical merit of the breach of lease claim, in the face of a slam dunk race discrimination claim against Caesars and Simon, I suspect the jury will find against the casino and landlord on that claim as well.