This is topic Theater vandalized in forum Ground Level at Film-Tech Forum ARCHIVE.
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Posted by Ken Layton (Member # 133) on 08-26-2001, 04:06 PM:
Just saw this on Jeff Knolls' Encore Cinemas site: www.film.ca His Upper Canada Place Cinemas in Burlington, Canada was vandalized badly enough to cancel all showings and close down.
Posted by Michael Brown (Member # 890) on 08-26-2001, 04:24 PM:
Interesting, How did vandals get into the booth anyway?
Posted by Ken Layton (Member # 133) on 09-02-2001, 01:25 PM:
Don't know how or what the extent of the vandalism is, but according to their website, they are still closed!
Posted by John Wilson (Member # 269) on 09-02-2001, 07:44 PM:
It says they are having trouble obtaining parts...if the website actually had an email address to contact rather than just o telephone number, we may be able to give him a hand to get him back on the screen...but I'm not up for a call charge from Aussie-land to Canada.Who has a website and no email contact anyway? (well, except the Orpheum in Sydney, but that's because the 'management' are morons...but that's another story. www.orpheum.com.au For that matter, they don't even tell you WHERE the cinema is...yeah, keep it a big secret...that's clever! 
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"There's so much I don't know about Astro-Physics...wish I'd read that book by that wheel chair guy" Homer Simpson
Posted by Gordon McLeod (Member # 33) on 09-02-2001, 09:41 PM:
While under banckrupcy protection the supplier of the booth equipment used a duplicate key from the installation to go in and remove the rectifiers autopmations dolby systems and all the lens and parts
This theatre owes me also equipment in trade for labour and century movemnets
this willget very messy since the original installation never worked and didn't meet any of the local codes
Posted by Adam Martin (Member # 641) on 09-02-2001, 10:07 PM:
Sorry to hear that, Gordon.So, how does this work in Canada? I would think that if this happened in the US, the supplier would be held in contempt of court and jailed in addition to any charges of breaking and entering and theft that the operator would like to press.
Jeff Knoll is the President of Encore Entertainment Corporation. His email is jknoll@film.ca .
Posted by Jerry Chase (Member # 660) on 09-02-2001, 11:33 PM:
Adam,
It is common for suppliers to state in a sales agreement or lease that equipment remains the sole property of the supplier until it is fully paid for. Some agreements point out the seller's remedy as well, which can include unilateral removal of equipment after non-payment of a lease or installment payment without recourse, including prevention of suit for trespass. Since the equipment is never property of the theatre, it isn't subject to any court bankruptcy order.The supplier is in good shape as long as he (a.) has a signed binding agreement with the purchaser, or (b.) has been doing business with the purchaser under terms long enough that there is no doubt the purchaser has had opportunity to study the terms of sale.
Every invoice I send has the terms of sale on the back, including equipment recovery procedures. In my case, none of my software will install without the licensing agreement being shown and my being on the phone with the customer to finish the installation.
Bluntly, suppliers get screwed even more than theatre owners. I've had a couple of companies go belly-up on me. I now protect myself.
It is called CYA.
As Gordon mentioned, things can get messy with suits and counter-suits, especially if there are ongoing disputes. Smart suppliers also specify the court of remedy in any sales agreement. IMNSHO it isn't vandalism if a person recovers property from someone who hasn't held up their end of an agreement. As an example, I own a mortgage on a house I sold to someone. If they don't pay the mortgage, I can foreclose and own the house again. The courts support it, and have for centuries.
I'm sorry for Jeff and his situation, but his problems go far beyond relations with any individual supplier. An in-depth study of his posts on his forum will tell you that.
Posted by Adam Martin (Member # 641) on 09-03-2001, 09:00 AM:
Thanks, Jerry. I hadn't thought of the terms of sale agreement. Although, I would think the vendor would have brought that up with the trustee in the Meeting of Creditors ... I don't know how far Knoll is into his bankruptcy proceedings.I haven't been to the exhibitor's forum in months ... maybe I'll go have a look.
Posted by Richard Fowler (Member # 893) on 09-03-2001, 09:37 AM:
The sales agreement and documentation can be the life saver in the situation. Even though the property may belong to the supplier, legal stalling may cost the supplier legal costs out of pocket to prove it is his property.....a lawyer preparing for the creditor meeting may end up to be a $1000 - 2000 outlay just to prove your claim....so they may have made a judgement call based on their contract.
Richard Fowler
TVP-Theatre & Video Products Inc. www.tvpmiami.com
Posted by Jerry Chase (Member # 660) on 09-03-2001, 10:01 AM:
Richard, I agree 100%. In a case like this possession is important. There have been incidents where equipment or supplies "mysteriously" disappears from a closed theatre only to pop up at another location, regardless of court orders. Not saying that Jeff would do this, but I've had it happen to me before. When a business starts to go sour, some businessmen lose any scruples they may have had. Another factor to consider is the security of equipment in an unoccupied theatre. Kids do get in, and speakers and amplifiers are desirable properties. Jeff's theatre was apparently operating, so it doesn't apply there, but I know of a theatre sitting very close to me where this type of equipment has been stripped.
Posted by Gordon McLeod (Member # 33) on 09-03-2001, 09:24 PM:
In Ontario the law is very clear If equipment is sold or leased for sale it is a asset of the company and as such falls under court action control if bankrupcy occurs. A registered sale can be made protecting the supplier if filed before delivery noteing ser#'s etc. ( and payning a hefty fee) but it is requires either payment of or removal with in 30 days of the invoice date, beyond that it falls back to a unsecured asset. Only the government and banks are secured creditors.
This has a problem since apparently there was never a itemized invoice
Posted by Adam Martin (Member # 641) on 09-03-2001, 10:23 PM:
What a mess. I hope the lawyers are enjoying themselves. 
Posted by Jerry Chase (Member # 660) on 09-03-2001, 10:25 PM:
Can't say that I think very much of the law, but many lease contracts are written so that at no time is the equipment property of the company. American Capital Leasing's agreement paragraph 17 is a standard. In part:Surrender. Lessee shall have no ownership right in the equipment and has no option to purchase it. Upon expiration of this lease or default, Lessee, at its expense shall return the equipment in good repair to such place as the lessor may specify. Yada yada...
I have set up leases like that. In essence, use of the equipment is leased and that is all.
Like I said, the supplier gets screwed even more than the exhibitor.
The courts and government force the use of unreasonable terms and night raids by having unreasonable laws.
Again, I'm not privy to Jeff's situation and am only speaking of generalities. BTW, I'm surprised that employees aren't secured creditors. Given the more socialist tendencies of Canadian government, this is a bit of a surprise.
Posted by Ken Layton (Member # 133) on 09-03-2001, 10:42 PM:
I wonder what the employees of the theater will do now? Looks like they are all out of a job. 
Posted by Charles Everett (Member # 889) on 01-19-2002, 12:22 PM:
Bumped it back up to let you know this theater has reopened.Thought I'd check it out while on a casual tour of the Ground Level.
Posted by Mark Gulbrandsen (Member # 72) on 01-26-2002, 05:36 AM:
All a dealer has to do is file a UCC-1 form with the state that the equipment is sold into. That guarantees that the dealer still owns the equipment till its paid for. We had to do this once on a customer that was way lengthy in paying an almost 6 digit figure he owed, we came within days of going to pull out the equipment. All one needs to do in order to do that is to contact the sherriff and have him go with you when you go to do that, no legal action required other than written notice and contacting the Sheriff. Doesn't cost much and affords very good protection. In the end we worked things out with our customer, allowed him to make payments with interest, which he did, and finally paid off the moneys due. This whole thing allowed us to actually help our customer out, which we preferred to do in this case, protect ourselves, and keep a great theatre operating. It proved to be a benefit to everyone involved. We will normally bend over backwards to help our customers out in instances like this, but also have to protect ourselves as well.
Mark @ GTS
Posted by Richard Fowler (Member # 893) on 01-26-2002, 10:10 AM:
UCC form makes you a secured ( first in line ) debt if you have to go to court. Mark probably remenbers Lee Artoe in Chicago.....he did mail order sales to independent cinemas on time payments....he had a "UCC" room in his office with legal paperwork for every state of the USA, neatly shelved.
Richard Fowler
TVP-Theatre & Video Products Inc www.tvpmiami.com