Landlord files counterclaim to Hollywood Theaters suit

Developer Scott Tillman has filed a counterclaim against tenant Hollywood Theaters Inc., which last month took its dispute with Tillman over the downtown Springfield theater's gross leasable area and a related cash allowance to federal court.

Portland, Ore.-based Hollywood Theaters, which opened the College Station Stadium 14 at 415 W. College St. in November, filed a lawsuit against College Station LLC on May 8 in U.S. District Court. The cinema chain - the country's ninth largest - has alleged in the suit that landlord Tillman failed to repay more than half of a $1.6 million cash allowance agreed upon by both parties in a 20-year lease signed in August 2005. Tillman has reimbursed Hollywood Theaters for about $720,000 of the allowance, according to the suit, but he has disputed the total amount in a counterclaim filed by Springfield attorney Frank Evans III with Lathrop & Gage LLP.

In that counterclaim, Tillman has alleged that Hollywood breached its contract with College Station and is in default.

Hollywood failed to submit required quarterly and annual financial reports detailing the theater's gross sales figures, according to the counterclaim. The lease requires Hollywood to pay a "percentage rent" fee equal to 6 percent of gross sales if that figure exceeds the minimum annual rent, but Tillman has been unable to calculate the amount due without the reports, court records show.

In a separate count, Tillman has alleged that Hollywood did not respond to his requests for proof of a commercial general liability insurance policy required by law.

In its original filing, Hollywood also asked the court to settle a dispute over the theater's square footage, which is listed as 47,833 in a July 2007 lease amendment signed by both parties. An architect hired by Hollywood, however, has estimated the building's size at 44,886 square feet, court records show.

Hollywood is seeking $878,000 in allowance damages and a declaratory judgment on the square footage; Tillman has requested a jury trial.