San Francisco Chronicle

SHN sues in bid to keep two plays off Curran stage

- By Sam Whiting

The Broadway production­s of the Tony Award-winning plays “Dear Evan Hansen” and “Harry Potter and the Cursed Child,” previously announced for the Curran theater in San Francisco, have been thrown into doubt by a lawsuit.

Tickets already are on sale for “Hansen,” with only limited availabili­ty left in the 1,600-seat house. Winner of the Tony Award for best musical of 2017, it opens in December. Ticket sales have not yet started for “Potter,” which won for best play in 2018, and is scheduled to open in the fall of 2019.

But in a court motion filed Sept. 25, the plaintiff Nederlande­r of San Francisco and SHN Production­s has asked a judge for a preliminar­y injunction to prevent CSH Theaters, controlled by Carole Shorenstei­n Hays, from opening either show.

The suit, which is essentiall­y a battle for control of San Francisco’s commercial stages between former business partners Robert Nederlande­r and Shorenstei­n Hays, was filed in the Court of Chancery for the State of Delaware, where both theater companies are operated as limited liability corporatio­ns.

As first reported by the New York Times, the suit calls for an

expedited proceeding to stop the production of the two plays. Nederlande­r maintains their staging at the Curran violates a non-compete contract clause for production­s staged within 100 miles of San Francisco. Citing “irreparabl­e harm” and loss of subscripti­on sales for SHN, the suit asks the court to block the staging of “Hansen” and “Harry Potter” at the Curran.

Plaintiff ’s attorney Tammy Mercer of Young, Conaway, Stargatt and Taylor, in Wilmington, Del., did not respond to a request for comment. Scott Kane, spokesman for SHN, said that “SHN does not comment on litigation matters.”

In a statement to The Chronicle, David B. Tulchin of Sullivan & Cromwell in New York, attorney for the defense, noted that the Delaware Chancery Court had already ruled for Shorenstei­n Hays and her husband, Dr. Jeffrey Hays, in a related suit this summer.

“This is a situation where a sore loser seeks again to strike out at Mrs. and Dr. Hays, and is also trying to interfere improperly with the business of the Curran theater and of unrelated thirdparty producers who have made arrangemen­ts to present their successful shows in a theater of their choosing” albeit one that Mr. Nederlande­r does not control, Tulchin said.

The earlier lawsuit was brought about after the breakup of the SHN partnershi­p, presenters of the “Best of Broadway” series and longtime operators of the Golden Gate and the Orpheum — the two largest commercial stages in the city. The SHN breakup was complicate­d because Shorenstei­n Hays still owns half of SHN. But she left the board and gave up any active control of SHN in 2014.

At the time, Shorenstei­n Hays announced that she was forming her own company, CSH. She had already bought the Curran, for $16.6 million. SHN had leased the Curran for decades and Shorenstei­n Hays allegedly made an oral promise to continue to lease it to SHN. Shorenstei­n Hays later denied that she had made any such promise.

In January 2017, after a two-year, multimilli­ondollar remodel, CSH hosted a grand reopening of the Curran, with the Broadway hit “Fun Home.” The lawsuits soon followed.

On July 31, the Chancery Court ruled on the side of Shorenstei­n Hays, on the grounds that there was not a prepondera­nce of evidence to prove that she promised to lease the Curran to SHN, and even if she did it was not an enforceabl­e agreement.

In the ensuing motion, Nederlande­r asked the judge to expedite the motion to prevent the staging of “Dear Evan Hansen” from beginning. But no timetable was given.

“We expect the court in Delaware to reject Nederlande­r’s claims again,” said Tulchin, “and we fully anticipate that theatergoe­rs in San Francisco will have every opportunit­y to see both ‘Dear Evan Hansen’ and ‘Harry Potter and the Cursed Child’ at the Curran.”

 ?? Scott Strazzante / The Chronicle ?? Carole Shorenstei­n Hays is being sued by ex-business partner Robert Nederlande­r over a non-compete contract clause.
Scott Strazzante / The Chronicle Carole Shorenstei­n Hays is being sued by ex-business partner Robert Nederlande­r over a non-compete contract clause.
 ?? Josh Edelson / The Chronicle 2017 ?? The broadway hit “Dear Evan Hansen” is scheduled to open at the Curran theater in December.
Josh Edelson / The Chronicle 2017 The broadway hit “Dear Evan Hansen” is scheduled to open at the Curran theater in December.

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