Local Theater Owners Vindicated in Lawsuit

Doug and Jackie Miranda - Staff Photo by Michael Williams

Doug and Jackie Miranda – Staff Photo by Michael Williams

It took two long years but Doug and Jackie Miranda finally received the vindication they had sought last week in a suit brought against them by a company representing a former singing group.

The Mirandas are the owners of the Grand Majestic Theater on the Parkway in Pigeon Forge. The theater is the home of two shows, the Soul of Motown and America’s Hit parade. Two years ago they were sued for $2 million by Ron Layher and Rhonda Lyles, of SM Productions, promoters and producers for Nate Evans, and the Temptations Review, which had appeared and performed the Grand Majestic Theater at its former location on Music Mountain Drive.

According to court documents, SM Productions rented the Smoky Mountain Jubilee in 2009 and produced a show featuring the Temptations Review. After an unsuccessful run, SM Productions was forced out of the Smoky Mountain Jubilee and contracted with the Mirandas to open the Temptations Review at The Grand Majestic. The Temptations Review’s tenure at the Grand Majestic was brief and SM Productions soon initiated a lawsuit alleging breach of contract on the part of the Mirandas.

Last week Chancellor Telford Forgety, Jr. issued a ruling in the case in which he ruled in favor of the Mirandas  and awarded them compensatory damages of $13,000 for a loan the Mirandas made to SM Productions. In addition, SM Productions was ordered to pay $5,878.35 for unpaid sales taxes, $2,589.15 to reimburse the Mirandas for equipment, and $387.33 for printing costs.

In his dismissal of the suit, Forgety chastised the company for misrepresentations made to the Mirandas and ruled “The plaintiffs are precluded from recovery based on the grounds of lack of good faith, unclean hands, and perhaps outright fraud and inducement.”

According to court documents, SM Productions owed $72,000 in back rent to the owners of the Smoky Mountain Jubilee and were under the threat of eviction when they closed the show.

After leaving the Smoky Mountain Jubilee, SM Productions contracted with the Mirandas to perform at the Grand Majestic. From the outset, the Temptations Review lost money. At one point the Mirandas lent the owners of SM productions $10,000 to pay the band.

Under the contract between the Mirandas and SM Productions, the production company was obligated to pay the band and provide marketing. SM Productions provided the Mirandas with a projection of revenues the Temptations Review were expected to generate. The group failed to generate the projected profits and lost considerable sums of money in the process.

In his ruling Fogerty stated “So the evidence is abundantly clear to the court that this show was a losing proposition from the time it started at the Smoky Mountain Jubilee in 2009 to, in the month of June when SM operated it at the Grand Majestic, and then from July until the end of December when Mr. Evans continued to perform and operate the show at the Grand Majestic Theater, the show still lost money.”

“We are glad it is over,” said Doug Miranda. “We feel justice has prevailed. We just want to move forward and do what we love to do which is to entertain and put on great shows.”

Source: Michael Williams, Jefferson County Post Staff Writer