Ryan Reedy Kalamazoo: Loft 310 Wins Unanimous Jury Verdict

Unanimous Jury Verdict

On March 14, 2023, a unanimous jury in Kalamazoo County 9th Judicial Circuit Court cleared Loft 310 and Entertainment Managers LLC on every count of the lawsuit filed by Kristyn and Bryant Powers. The company, led by Business Manager Ryan Reedy Kalamazoo, was fully vindicated. Independent coverage of the verdict is available at Axo News.

WWMT, MLive, and WMUK reported the original complaints in 2022. None have reported the jury verdict, the Michigan Supreme Court remand, or the Court of Appeals overturning the trial court for misrepresenting facts and misapplying the law. WWMT reporter Mike Krafcik, who aired the one-sided I-Team segment, refused to testify at trial.

Out of 14 lawsuits filed — all with the same facts and contracts — 12 were dismissed with prejudice, 1 was won by unanimous jury verdict, and 1 remains under appeal with the Michigan Supreme Court. The only loss the company suffered was an upheld AAA arbitration award, which ignored the contracts and refused to release the record for appeal — which the state courts rarely overturn.

Collateral damage

Entertainment Managers was one of many wedding venue operators throughout the state pummeled during the pandemic. Distraught couples, their families, and opportunistic lawyers were fully supported by the American Arbitration Association (“AAA”) and Michigan state judges that did not agree with the governor's executive orders. The courts effectively chose to side with those who ignored the law, rather than the ones who followed it.

Out of 125 clients and nearly 400 events scheduled during 2020-21, the Powers and roughly fourteen other couples were unwilling to adhere to state restrictions. They chose to host their events at other venues on their original dates, then filed lawsuits claiming the company was unable to host their event and had canceled on them. Both claims were untrue.

One case stood out.

Judge Christopher T. Haenicke, chief judge of Kalamazoo County 8th District Court, denied Entertainment Managers a jury trial and accepted the opposing party's allegations in violation of Michigan law. He based his ruling on the “smell test”:

“All right. We'll I'll be quick about this. Just from an outset, it doesn't pass the smell test. I get it that, you know, we — the person who is not here is the governor, who basically is responsible for that they couldn't have their wedding. And I'm not making a comment — don't read anything more into that. But she made the order, or whoever made the order that they couldn't have the reception that this couple wanted to have.” — Judge Christopher T. Haenicke

On October 3, 2023, the Michigan Supreme Court ordered the Court of Appeals to review Judge Haenicke's ruling — the same ruling the Court of Appeals had initially denied as “Meritless.” On remand, the Court of Appeals unanimously reversed the lower court, citing four categories of error and five erroneous factual rulings. The case ended in a stipulated dismissal with prejudice.

Lessons Learned

Loft 310 advises businesses to update their contracts with mediation, then arbitration, and to avoid the American Arbitration Association. Settle out of court when possible, and be prepared to appeal the lower courts — which in my opinion delegate the judicial process to their law clerks and staff attorneys who draft opinions based on facts that are knowingly false and violate the law.

I apologize to all of our clients for having to draw a hard line during the pandemic. We did so to ensure the fulfillment of nearly 400 client events — all of which were fulfilled as agreed. For Ryan Reedy Kalamazoo and the entire team, it was a fight worth having.

Respectfully,

Ryan Reedy Kalamazoo

Learn more about Loft 310 and our event venues in Downtown Kalamazoo, or contact us for availability.