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Date Posted: 16:30:21 03/20/15 Fri
Author: MGM Resorts International
Subject: MGM Springfield Goes Bankrupt

Springfield on the hook for $675,000-plus after jury finds city retaliated against liquor license applicant over MCAD complaint

SPRINGFIELD — Eight years after the License Commission turned down a liquor license application from Will J. Quarterman, a jury has awarded Quarterman $350,000 from the City of Springfield and commission chairman Peter Sygnator.

A Hampden Superior Court jury on Thursday returned a verdict checking the box for "yes" to the question: "Did Mayor (Charles V.) Ryan retaliate against Mr. Quarterman because Mr. Quarterman filed a complaint against him and the city of Springfield with the Massachusetts Commission Against Discrimination.

They also checked yes to: "Did Mr. Quarterman suffer harm as a result of Sygnator and Ryan's actions?"

They awarded Quarterman $250,000 in lost profits and $100,000 in emotional distress.

Leonard H. Kesten, Quarterman's lawyer, said that adding in the interest due Quarterman, the amount owed his client as of Friday is $675,413. He said Judge Daniel A. Ford has set a Nov. 19 date to hear Kesten's fee petition because the city must pay Quarterman's attorneys fees and costs.

Kesten said, "We are delighted. Mr. Quarterman was not going to give in."

He said Quarterman was subjected to grossly unfair treatment compared to white businessmen seeking a liquor license. Quarterman identified himself as mulatto in the MCAD complaint.

At the jury trial, the jury was read a stipulation as part of the evidence. It said, "MCAD conducted an investigation of Mr. Quarterman's complaint and the Commission has acknowledged that only a small percentage of entertainment establishments in the Springfield Entertainment District are owned by minorities or have a clientele that consists of mostly minorities in comparison to the Springfield population."

The MCAD had found probable cause, and Quarterman filed the court case.

But the jury did not find Quarterman was discriminated against based on race or color when denied a liquor license in 2006 to convert the old Asylum nightclub space at 1592-1594 Main St. into the Halo Lounge.

City Solicitor Edward Pikula said the city will seek "a judgment in favor of the city notwithstanding the jury verdict," asking Ford to reverse the jury's verdict. That will be filed after the motion hearing on attorney's fees.

Pikula said, "I am greatly concerned that allowing the jury to award damages against the city because of a mayor expressing his opinions on an important matter of public concern will have a chilling effect on public officials and interfere with their ability to carry out their duty."

He said, "Matters of discrimination and retaliation are certainly weighty issues, but not so weighty as to interfere with core rights." Pikula said an application before the License Commission involves the suitability of the applicant, its (other named) principles and the suitability of the location.

"The mayor and the police commissioner (Edward Flynn) explained the drain on the resources that was being caused by existing establishments and the likely impact on adding the venue that was proposed for this scene of rave parties in the past," Pikula said.

Pikula said they expressed their concerns that the rest of the city might be without police coverage when all police resources would be dedicated to that area (the Entertainment District).

Exile Entertainment Corp., with Paul V. Ramesh of East Longmeadow listed as majority owner and Quarterman of Springfield listed as minority owner, was seeking a liquor license to open the proposed club at the Main Street venue.

Quarterman had filed the complaint with the Massachusetts Commission Against Discrimination against Ryan and Sygnator when denied a liquor license to open a larger club there.

"I am being discriminated against because of my race," Quarterman said in the MCAD complaint.

The case decided by the jury Thursday has a long and complicated history. Hampden Superior Court Judge Constance M. Sweeney had dismissed the case in November 2011, after ruling evidence given in a federal trial could not be used at the Superior Court trial.

The state Appeals Court in January 2013 overturned Sweeney's decision, saying the federal court case dealt with an earlier denial of a liquor license transfer requested by Quarterman. The state case dealt with the denial of the request for a new license by Quarterman and Ramesh, the Appeals Court said.

The vacant Asylum building was purchased by the New England Farm Workers Council in March of 2013 for $450,000.

It is now the site of 1600 Main International Biergarten-Cerveceria.

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