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Local music fest promoters face lawsuit

By ERIC LINDBERG — Aug. 27, 2009

A local company responsible for organizing and promoting the West Beach Music Festival is facing a lawsuit filed by another concert promoter seeking nearly $500,000 for allegations of fraud, conspiracy, breach of contract and numerous other counts.

Jacalyn Kane, of Kane Productions, filed suit this week against Twiin Productions, alleging the Santa Barbara-based company partnered with her last year to put together the oceanside music bash only to steal her industry contacts, bilk her out of her share of ticket sales and illegally cut her out of future promotion deals.

“We certainly wouldn’t have brought them if we didn’t feel they were legitimate counts,” said James Scafide, an attorney representing Kane. “I feel very confident.”

However, Jeremy Pemberton, president and co-founder of Twiin Productions, dismissed the lawsuit as riddled with faults and said it should “go away quickly.” He said the company’s attorney is drafting a detailed response to the lawsuit that should be available to the public tomorrow.

“In our mind, it’s not even a headache to us because we have confidence in how this will end up,” Pemberton said, adding later, “At this point, our focus and concern is we’re excited about the festival and its positive impact on the community, both economic and cultural. As far as petty things like this, it’s not worth our focus.”

In the detailed complaint filed on Monday, a total of 17 counts are alleged against Jeremy Pemberton, his brother and the company’s vice president Joshua Pemberton, and Robert Montgomery, described in the suit as a “silent partner” who provides much of the financial backing for the promotion firm.

Kane, described as a well-known and connected promoter in local circles, said she was approached by Twiin Productions to help bring in bigger acts after the 2007 music festival failed to turn a profit.

“After she did that, they claimed they didn’t make any money and they didn’t pay her anything,” Scafide said.

The lawsuit outlined several agreements signed by Kane and Twiin Productions in which they agreed Kane would have the first stab at partnering with Twiin on any future promotions, in addition to receiving 10 percent of the net proceeds of the 2008 festival.

Once the festival ended and Kane asked for her share of the proceeds, the defendants told her that the festival had lost $600,000, according to the complaint.

“Despite plaintiffs’ repeated requests, defendants failed to provide a true and accurate accounting, but from the information provided, it appears the festival actually made a profit of approximately $870,000,” according to the lawsuit.

Since then, the complaint alleges Twiin Productions has continued to promote concerts and organize this year’s music festival without notifying Kane as mandated by their contract.

In several contradictory statements, Pemberton said similar allegations had popped up months ago and he thought the issue had been settled at that point, but then said the lawsuit had come as no surprise.

“We discussed them back then and thought it had gone away,” he said, but added later, “We’ve been independently promoting without her for a year and this is the first time the complaint has been brought up.”

Pemberton also said it is “obvious and painstakingly clear” that last year’s festival was not profitable, adding, “Bank accounts don’t lie.”

In addition to the dispute over festival profits, a large portion of the lawsuit centered on a ticket agency formed by Kane and Twiin Productions to capture ticket-processing fees — roughly $8 a ticket — that would otherwise go to an outside agency.

After the two parties had agreed to fifty-fifty split on the profits, the lawsuit alleges that Twiin Productions set up a second ticketing agency and funneled all the ticket sales through that company while keeping Kane in the dark.

“Kane had to fight to gain access to the records of the corporation, despite the fact that she owned 50 percent of the shares,” according to the complaint. “Defendants and their lawyers repeatedly delayed and stonewalled Kane’s attempts to get at the truth.”

Scafide said the fact that the Pembertons, while acting as officers for the ticket agency shared by Kane and Twiin Productions, launched a competing ticket agency and diverted profits away represents a breach of fiduciary duty. He characterized that count as one of the strongest in the lawsuit.

“I think the egregious nature of the breach of fiduciary duty and the misappropriation of assets of that company is pretty stinging,” Scafide said.

Another section of the complaint focused on misappropriation of trade secrets, alleging that Twiin representatives would negotiate with potential performers behind Kane’s back in an attempt to establish direct relationships with her contacts before cutting her out of the loop.

All told, Kane is seeking $436,750 in damages, as well as roughly $35,000 in legal fees. Regardless of the legitimacy of allegations, the litigation comes at a poor time for Twiin Productions, as ticket sales are just kicking off for the 2009 West Beach Music Festival next month.

It is unclear if the lawsuit will have any impact on attendance at the music fest, which features Ben Harper, G. Love and Special Sauce, and Slightly Stoopid, among other performers.

Comment on this article

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John Q : 8/27/2009

I can't see how last years fest made money. It was a barren wasteland with no people. When will there financiial backer pull out.

///


No Impact on 2009 Music Fest : 8/27/2009

The "litigation comes at a poor time" isn't true. The complaint was just filed. We believe it will be dismissed quickly. If it were to go to litigation it would be months from now. Our attorney is drafting a detailed response to each allegation and will file on AUG 28, making it available to the public. Until then... come join us on the beach! Sales are up 375% from last year. We are expecting between 7,000-9,000 attendees daily and we have 5,500+ tickets sold at this already! Get your tickets now before prices go up on AUG 28! www.westbeachfestival.com

Jeremy Pemberton, Twiin Productions, Inc.


SHADY!!! : 8/27/2009

Its a shame that these people bring such shady business practice to my town.

Citizen


Shady is just the beginning... : 8/27/2009

My question is where is did the funds raised from the supposed 'SOLD OUT' Jesusita Fire Benefit show at the Granada go?? Shady is the Twiin's middle name.

Concerned in SB


WOW : 8/27/2009

SO: if they are bragging about losing over 600k last year, and not paying the person they hired to book the *STELLAR* lineup, who in their right mind would give tweedle dee & tweedle dum another million to *play* with in this economy (given the admitted losses)?? Something seems even more sketch... I like the idea of this festival & think this year's lineup is more fitting of SB--- but seriously.

sketch II


PROMOTERS on the High Beach : 8/27/2009

Concert promotion (especially festivals/companies backed by money) is an industry run by pirates...and the pirate-friends they work with (Kane). All for one...and one for one!

Aaaaaar Matey


Learning Curve : 8/27/2009

I have worked directly with Twiin on the West Beach Music Festival for their first and second events. I was not hired to work with them this year. What I can say about Josh and Jeremy is that they have tried to do what few have had the guts to do. This event is an enormous undertaking. There is a huge amount of detail and risk involved, not to mention a never ending learning curve. My experience on both events ran the gamut of emotion, along with the multiple changes expected especially when creating a new venue. I don't know if you can take on such a large enterprise and not end up in a courtroom eventually. This too is part of the process. The legalities involved in such a large public venture practically demand that everything be run through multiple legal teams first. Whatever lessons need to be learned from this legal experience will only add to an already amazing team, which by the way includes one of the most ethical people I've worked with, Warner. So go for it boys, embrace it and the best of luck to you all this year!


Trashy Business : 8/27/2009

The amount of trash that this festival produces is mind blowing.. Just because they have clean up crews doesn't mean that every piece goes to the dump. And with the beach being so close to the festival, you can be certain that there will be trash in our local beaches and on the streets. I am choosing not to support these out-of-towner twiin MTVers. This festival is filled with Drunk students that come from UCSB, SBCC, SLO, Ventura, Brooks, SD, Bakersfield and LA. The whole operation is built on bad blood and should not be supported by locals.

The main attraction


Pirate Kane?? : 8/27/2009

Well, Aaaaaaar Matey, I can't speak for the Twins, but Jackie Kane? A pirate?? You obviously have never worked with her or know her. She is the antithesis of everything you assume about the promotion/production biz. Everything she does is from the heart. She does not have big backers and her shirt is on the line with every venture she undertakes. If she chooses to bring a talent to town, it is because she loves them and believes SB will also. She is enormously kind and generous. Twin Productions sought out her extensive experience, expertise and connections in putting together major festivals in and events in a joint effort to bring the West Beach festival to SB, and it seems, as I recall, it was very successful. If they reneged on their end of the contracts, then, that would indeed be more fitting to the stereotypical Pirate you described.

Eric


Can You Say Shady? : 8/28/2009

If the Twins are not shady and in avoidance, then why are there other vendors in town who also have not been paid from last year’s festival and media outlets who never got paid for some of the advertising the Pembertons agreed to pay for? These guys are ballsy. They’ve even been known to ask for more before they’ve paid for what they’ve already received. They also claim different things to different people depending on how they want the information to sound. A lot of people in town have grown wary of them over the last year. There’s been a lot of underground talk. Finally someone’s had the courage to bring some of their words and actions into the broad daylight so that a court can decide just how ethically (or not) these guys are playing the business and music scene.

Time to Pay the Fiddler?


The Big Picture! : 8/30/2009

All I see is an uneducated lady trying to get her glory any way she can. This money hungry Kane can't see the big picture. I can only assume why she wasn't brought back in 2009, and that's because she didn't make the festival any money the year before. Now that they are back without her, she is trying to cry her way back in and get a piece of the new pie. What a disappointment. It's tough to want to do business with someone who seems to always want something that she didn't work for...hmmm

Sweet Cherry Pie


regardless of the lawsuit outcome... : 8/30/2009

the twins are shady money hungry people and karma will catch up to them at some point or another. They lie, they steal, they manipulate, they have no genuine concern for the city of santa barbara and they have and continue to severely burn bridges with all kinds of people! What a sad way to live your life.


Sweet Cherry Pie and "The Big Picture" : 8/30/2009

Sweet Cherry Pie, it's obvious that you do not know Kane or the Pembertons or their ethics, professional experience, and individual track records; and that consequently you yourself can't see the big picture. If you knew the parties, you would reverse your statement and replace the name Kane with the name Pembertons. Probably best not to comment when you obviously know nothing about the parties.


The Bigger Picture : 8/31/2009

Dear Sweet Cherry Pie - I have known Kane Productions for over 15 years and have worked for her and her company on amazing festivals and extremely successful & creative benefit and concerts. It has always been a pleasure. She is a tireless worker who cares deeply about every social cause or event she produces. Funny, really, that you should claim she is uneducated when she graduated from the same college as I did and I believe with am advanced degree. She has worked with and for some pretty prestigious and brilliant folks many of whom are still her closest associates and friends. hmmmm...


I HATE ELITEST YOUNG LOOSERS : 9/2/2009

I HATE ELITEST YOUNG LOOSERS I HATE THESE FING LOOSERS THEY DON'T REACH OUT TO THE COMMUNITY JUST TO THE RICH ELITESTS. THIS FESTIVAL SUCKS, PLUS YOU ARE STUCK IN THE CRAP PIT IN THERE FENCED IN LIKE A FEMA CAMP AND YOU WANT A DRINK THEY GIVE YOU A WATERED DOWN MARGURITA THAT COSTS $6 in A DIXIE CUP I HATE THESE LOOSERS I HATE THIS CONCERT I WISH THEY WOULD GO AWAY AND NOT COME BACK, THEY DON'T LISTEN OR COME BACK TO YOU I HATE THESE YOUNG TWIN JERKS. MAYBE YOU RESPECT THE LOCALS AND PEOPLE THAT WANT TO HELP YOU. YOU TWIN JERKS AND YOUR WHOLE DUMB CREW.

I HATE ELITEST YOUNG LOOSERS


We would like to see a follow up story : 12/7/2009

We would like to see a follow up story, no one has addressed this issue. The Independent has chosen to ignore it, as they are bias to the subject.

Blast


UPDATED INFO: : 1/12/2010

FOR IMMEDIATE RELEASE CONTACT: Jeremy Pemberton
January 11, 2010 Jeremy@twiinproductions.com 805-845-6658

Defendant Twiin Productions, Inc filed cross complaint after Plaintiff Jacalyn Kane and Kane Productions, Inc received Denial of Writ of Attachment and Disqualification of Representation by Santa Barbara County Court.

On Friday, January 8, 2010, Twiin Productions, Inc., filed the much anticipated cross-complaint against cross-defendant Jacalyn Kane and Kane Productions, Inc. The cross-complaint comes after Kane’s motion for writ of attachment was denied and her former representation, The Buynak Law Firm, was disqualified based upon a breach of the rules of professional conduct that regulate attorneys.

On August 24th, 2009, just weeks before Twiin Productions’ annual West Beach Festival was to take place, Jacalyn Kane and Kane Productions, Inc, filed an eighty some page lawsuit for damages claimed at close to $500,000, with intentions to harm the reputation and economic standing of Twiin Productions. This complaint made front page news in several media outlets in the Central Coast, in addition to other National coverage. Unfortunately, this frivolous complaint had no merit and the halls of justice have weighed-in, bringing several defeating rulings to the Plaintiff.

On October 19, 2009, the Court denied Kane’s application for writ of attachment, which was filed by the Buynak Law Firm. The court documents read: “there are a number of problems with the applications.” The court furthered its ruling by reminding Kane and the Buynak Law Firm about the seriousness of such a filing stating: “The court feels compelled to note that applications for writs of attachment are taken quite seriously by the court.”

On November 30th, 2009, the court granted the motion to disqualify counsel for Kane. After several written requests over a six-month period of time, the Buynak Law Firm and Jacalyn Kane refused to separate their representation and continued to pursue a meritless lawsuit. This caused significant financial damage and damage to reputation of Twiin Productions, the West Beach Festival, and its shareholders. [There were several potential sponsors (critical to the success of such large-scale events) that withdrew their interest after the filing.] The court ruling identified that “the Buynak Law Firm can now use information (from former client, Robert Montgomery), which was obtained in confidence during and attorney-client relationship, to further the interests of its clients in the current litigation.” (As of this press release, more than 30 days after disqualification, The Buynak Law Firm still continues to boast its representation against the West Beach Festival on their website, furthering damage against Twiin Productions and its shareholders.)

On January 8, 2010, Twiin Productions, filed the verified cross-complaint for Breach of Contract; Breach of the Implied Covenant of Good Faith and Fair Dealing; Slander; Breach of Fiduciary Duties: (1) Breach of Duty of Care (2) Breach of Duty of Loyalty; Tortious Interference with Contractual Relations; Tortious Interference with Prospective Economic Advantage; Requests for Preliminary and Permanent Injunction.

Kane received more than $35,000 for services rendered for the 2008 West Beach Music Festival. Despite payment being made in full, Kane continued a frivolous and obvious scratching at opportunity to further her agenda in hopes of even more financial gain.

Twiin’s filing brings to light the methodic and devious attempts of Kane to gain control of the West Beach Festival, and ultimately her attempts to conspire and take over and steal the festival completely – independent of Twiin’s involvement.

Furthermore, the filing shows that Kane’s complaint against Beach City Tickets, Inc holds no merit. Beach City Tickets, Inc was incorporated April 2009 – a full year after Twiin Productions and its directors realized Kane’s ill-will attempt to take over complete control of the festival. Twiin and Kane formed TwiinKane Ticketing, Inc. in February 2008, with a primary goal of increasing cash flow since most ticketing solutions in the industry hold ticket sale proceeds until seven to fourteen days after the execution of the event. Kane alleged that Beach City Tickets was formed to compete with TwiinKane Ticketing– the timeline alone can identify this simply wasn’t the case.

Outside of the events related to the West Beach Festival and TwiinKane Ticketing, Inc., Kane continued to defame and discredit Twiin Productions amongst the community and directly to agents within the music industry. With intentions to cause economic damage and damage to reputation, Kane contacted agents in February 2009 – more than five months after her services had been ceased at the conclusion of the West Beach Festival. Kane told agents within the industry that Twiin Productions was in breach of contract with Kane. This undeniably caused harm to Twiin Productions.

Since the origination of her demands in June 2008, Kane has now enlisted her third attorney, in her continued frivolous attempts against Twiin Productions. It has already been acknowledged that Kane’s First Amended Complaint is defective and the demurrers (motion to dismiss) filed by Twiin Productions will likely not be defended at the upcoming hearing on February 22.

Kane has not responded to Twiin’s demands for admission, which was filed December 1, 2009 and provides 30 days for response. This response was to provide the evidence for all claims against Twiin, or the withdrawal of claims against Twiin – none of which has happened.

In the midst of this legal action and continued frivolous, ill will of distractions – Twiin Productions and the West Beach Festival had a record-breaking year in 2009. Reported by the Santa Barbara Police Department, the festival had over 33,000 attendees over the three-day event. Twiin Productions continued its strong momentum when it was awarded the Internationally recognized 2009 Greener Festival Award for its 42% diversion rate (one of the highest in the nation) and its eco-centric solutions implemented at the event.

Additionally in 2009, the Santa Barbara County Board of Supervisors recognized Twiin Productions with a resolution honoring the Dedicated Service to the Community.

Finally, it is apparent that not a beat was missed for the West Beach Festival, as two special, early-bird ticket releases for next year SOLD OUT. On Black Friday, at the start of the holiday shopping season, West Beach Festival sold out a limited amount specially priced tickets, which initiated another special release just days before Christmas. Tickets will be on-sale again in Spring 2010.

# # #

Please visit twiinproductions.com/press/twiin_documents.zip to view the cross-complaint, as well as the resolution awarded to Twiin Productions.

Jeremy Pemberton


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