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Topic: Theater vandalized

Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999

posted 08-26-2001 04:06 PM

Just saw this on Jeff Knolls' Encore Cinemas site: www.film.ca

His Upper Canada Place Cinemas in Burlington, Canada was vandalized badly enough to cancel all showings and close down.

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Michael Brown
Phenomenal Film Handler

Posts: 1522
From: Bradford, England
Registered: May 2001

posted 08-26-2001 04:24 PM

Interesting, How did vandals get into the booth anyway?

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Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999

posted 09-02-2001 01:25 PM

Don't know how or what the extent of the vandalism is, but according to their website, they are still closed!

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John Wilson
Film God

Posts: 5438
From: Sydney, Australia.
Registered: Dec 1999

posted 09-02-2001 07:44 PM

It says they are having trouble obtaining parts...if the website actually had an email address to contact rather than just o telephone number, we may be able to give him a hand to get him back on the screen...but I'm not up for a call charge from Aussie-land to Canada.

Who has a website and no email contact anyway? (well, except the Orpheum in Sydney, but that's because the 'management' are morons...but that's another story. www.orpheum.com.au For that matter, they don't even tell you WHERE the cinema is...yeah, keep it a big secret...that's clever! )

------------------
"There's so much I don't know about Astro-Physics...wish I'd read that book by that wheel chair guy" Homer Simpson

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Gordon McLeod
Film God

Posts: 9532
From: Toronto Ontario Canada
Registered: Jun 99

posted 09-02-2001 09:41 PM

While under banckrupcy protection the supplier of the booth equipment used a duplicate key from the installation to go in and remove the rectifiers autopmations dolby systems and all the lens and parts
This theatre owes me also equipment in trade for labour and century movemnets
this willget very messy since the original installation never worked and didn't meet any of the local codes

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Adam Martin
I'm not even gonna point out the irony.

Posts: 3686
From: Dallas, TX
Registered: Nov 2000

posted 09-02-2001 10:07 PM

Sorry to hear that, Gordon.

So, how does this work in Canada? I would think that if this happened in the US, the supplier would be held in contempt of court and jailed in addition to any charges of breaking and entering and theft that the operator would like to press.

Jeff Knoll is the President of Encore Entertainment Corporation. His email is jknoll@film.ca .

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Jerry Chase
Phenomenal Film Handler

Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000

posted 09-02-2001 11:33 PM

Adam,
It is common for suppliers to state in a sales agreement or lease that equipment remains the sole property of the supplier until it is fully paid for. Some agreements point out the seller's remedy as well, which can include unilateral removal of equipment after non-payment of a lease or installment payment without recourse, including prevention of suit for trespass. Since the equipment is never property of the theatre, it isn't subject to any court bankruptcy order.

The supplier is in good shape as long as he (a.) has a signed binding agreement with the purchaser, or (b.) has been doing business with the purchaser under terms long enough that there is no doubt the purchaser has had opportunity to study the terms of sale.

Every invoice I send has the terms of sale on the back, including equipment recovery procedures. In my case, none of my software will install without the licensing agreement being shown and my being on the phone with the customer to finish the installation.

Bluntly, suppliers get screwed even more than theatre owners. I've had a couple of companies go belly-up on me. I now protect myself.
It is called CYA.

As Gordon mentioned, things can get messy with suits and counter-suits, especially if there are ongoing disputes. Smart suppliers also specify the court of remedy in any sales agreement. IMNSHO it isn't vandalism if a person recovers property from someone who hasn't held up their end of an agreement. As an example, I own a mortgage on a house I sold to someone. If they don't pay the mortgage, I can foreclose and own the house again. The courts support it, and have for centuries.

I'm sorry for Jeff and his situation, but his problems go far beyond relations with any individual supplier. An in-depth study of his posts on his forum will tell you that.

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Adam Martin
I'm not even gonna point out the irony.

Posts: 3686
From: Dallas, TX
Registered: Nov 2000

posted 09-03-2001 09:00 AM

Thanks, Jerry. I hadn't thought of the terms of sale agreement. Although, I would think the vendor would have brought that up with the trustee in the Meeting of Creditors ... I don't know how far Knoll is into his bankruptcy proceedings.

I haven't been to the exhibitor's forum in months ... maybe I'll go have a look.

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Richard Fowler
Film God

Posts: 2392
From: Ft. Lauderdale, FL, USA
Registered: Jun 2001

posted 09-03-2001 09:37 AM

The sales agreement and documentation can be the life saver in the situation. Even though the property may belong to the supplier, legal stalling may cost the supplier legal costs out of pocket to prove it is his property.....a lawyer preparing for the creditor meeting may end up to be a $1000 - 2000 outlay just to prove your claim....so they may have made a judgement call based on their contract.
Richard Fowler
TVP-Theatre & Video Products Inc. www.tvpmiami.com

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Jerry Chase
Phenomenal Film Handler

Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000

posted 09-03-2001 10:01 AM

Richard, I agree 100%. In a case like this possession is important. There have been incidents where equipment or supplies "mysteriously" disappears from a closed theatre only to pop up at another location, regardless of court orders. Not saying that Jeff would do this, but I've had it happen to me before. When a business starts to go sour, some businessmen lose any scruples they may have had.

Another factor to consider is the security of equipment in an unoccupied theatre. Kids do get in, and speakers and amplifiers are desirable properties. Jeff's theatre was apparently operating, so it doesn't apply there, but I know of a theatre sitting very close to me where this type of equipment has been stripped.

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Gordon McLeod
Film God

Posts: 9532
From: Toronto Ontario Canada
Registered: Jun 99

posted 09-03-2001 09:24 PM

In Ontario the law is very clear If equipment is sold or leased for sale it is a asset of the company and as such falls under court action control if bankrupcy occurs. A registered sale can be made protecting the supplier if filed before delivery noteing ser#'s etc. ( and payning a hefty fee) but it is requires either payment of or removal with in 30 days of the invoice date, beyond that it falls back to a unsecured asset. Only the government and banks are secured creditors.
This has a problem since apparently there was never a itemized invoice

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Adam Martin
I'm not even gonna point out the irony.

Posts: 3686
From: Dallas, TX
Registered: Nov 2000

posted 09-03-2001 10:23 PM

What a mess. I hope the lawyers are enjoying themselves.

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Jerry Chase
Phenomenal Film Handler

Posts: 1068
From: Margate, FL, USA
Registered: Nov 2000

posted 09-03-2001 10:25 PM

Can't say that I think very much of the law, but many lease contracts are written so that at no time is the equipment property of the company. American Capital Leasing's agreement paragraph 17 is a standard. In part:

Surrender. Lessee shall have no ownership right in the equipment and has no option to purchase it. Upon expiration of this lease or default, Lessee, at its expense shall return the equipment in good repair to such place as the lessor may specify. Yada yada...

I have set up leases like that. In essence, use of the equipment is leased and that is all.

Like I said, the supplier gets screwed even more than the exhibitor.
The courts and government force the use of unreasonable terms and night raids by having unreasonable laws.

Again, I'm not privy to Jeff's situation and am only speaking of generalities. BTW, I'm surprised that employees aren't secured creditors. Given the more socialist tendencies of Canadian government, this is a bit of a surprise.

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Ken Layton
Phenomenal Film Handler

Posts: 1452
From: Olympia, Wash. USA
Registered: Sep 1999

posted 09-03-2001 10:42 PM

I wonder what the employees of the theater will do now? Looks like they are all out of a job.

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Charles Everett
Phenomenal Film Handler

Posts: 1470
From: New Jersey
Registered: May 2001

posted 01-19-2002 12:22 PM

Bumped it back up to let you know this theater has reopened.

Thought I'd check it out while on a casual tour of the Ground Level.

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