The owner of the Utah Film Studio has filed suit, alleging it suffered financial damages after leasing the facility to a now-deceased Las Vegas businessman. The lawsuit says his surviving company hasn’t met its financial obligations.
The lawsuit in Third District Court was filed against PC Studios in mid-April by Quinn Capital Partners, the owner of the studio. PC Studios is, reportedly, a holding company formed by late Las Vegas venture capitalist Tony Hsieh in order to lease the space located near Quinn’s Junction.
The litigation says that last fall, Hsieh approached Quinn Capital and indicated he was interested in leasing the studio even though it had an existing tenant—the production of the TV series “Yellowstone,” which filmed at the studio and on location in Summit County.
Allegedly, in order to persuade Quinn to negotiate an early eviction of “Yellowstone,” Hsieh promised a long-term lease, agreed to manage the studio, possibly hiring several Quinn Capital employees and proposing a $6 million letter of credit to secure his commitment.
As a result, the “Yellowstone” production vacated the space on Nov. 1.
Under an agreement enacted on Oct. 30, PC Studios entered a five-year lease with four renewal options, and agreed to a rent of $250,000 a month.
However, before the letter of credit was finalized, Hsieh died in Connecticut in a house fire on Nov. 27.
The suit alleges PC Studios collected rent for hosting several licensees at the studio, despite not paying the amounts promised under the lease. When the plaintiff threatened an unlawful detainer action, PC vacated the space.
Quinn Capital alleges the defendant owes at least $1.75 million, which includes rental payments, the cost to pay Quinn’s employees, Marshall Moore, to market the studio to another tenant, and expenses to put the studio into first-class rentable condition.
It is also asking the court to enforce the $6 million letter of credit.
Quinn’s attorney and the counsel for Hsieh’s estate have not yet responded to KPCW’s requests for comment.
