LOS ANGELES (CelebrityAccess) – Knitting Factory Entertainment CEO Morgan Margolis and his partners have prevailed in a long-running dispute with the defendants, securing control of Pappy + Harriet’s in Pioneertown near Joshua Tree, and winning millions in damages.
After a multi-week jury trial, the jury unanimously found in favor of the Margolis group, awarding plaintiffs substantial damages for various breaches of contract and the taking of intellectual property.
The Los Angeles Superior Court followed suit by ruling in favor of the Margolis Group on all remaining claims, finding that the defendants engaged in “breaches of fiduciary duty,” “wrongful conduct,” and “breached the Partnership Agreement in multiple ways.” The decision confirmed that the Margolis Group was always supposed to control the partnership, the venue operations, and the talent booking and was wrongfully ousted without basis. The Court restored control over Pappy + Harriet’s to the Margolis Group. The ruling is expected to significantly increase the damages against the defendants.
On Friday (December 20), the Court issued an immediate injunction directing the defendants Moresco and Elin Group to restore all operational and financial control over all aspects of Pappy + Harriet’s to the plaintiffs.
The two entities announced their partnership back in April 2021 to acquire the venue from beloved longtime owners Robyn Celia and Linda Krantz, who purchased Pappy and Harriet’s in 2003 from Harriet Allen and her husband, Claude “Pappy” Allen, who founded it in 1982. The venue started life as a Western movie set in Cantina in the 1940s. The exceedingly long list of marquee performers to grace the Parry + Harriet’s stage ranges from Paul McCartney, Eric Burdon, Eagles of Death Metal, Rufus Wainwright, Grizzly Bear, and Robert Plant to Phoenix, Belle & Sebastian, Orville Peck, Patti Smith, Lucinda Williams, and Jamie XX.
The parties formed a partnership to buy Pappy + Harriets from Robyn Celia and Linda Krantz, with Margolis’ Group funding the purchase. Within weeks, the defendants, Lisa Elin and J.B. Moresco shut them out.
Margolis responded by filing suit against Moreso and Elin on June 23, 2021. After more than three years of wrangling and delays, the jury trial commenced on October 22, 2024, and lasted eight days.
The plaintiffs were represented in this matter by Blank Rome, LLP.
Speaking for the plaintiffs, Margolis said, “We pride ourselves on decades of successful and meaningful partnerships and industry relationships built on trust and integrity. We are pleased that the judge and jury confirmed what we have always known to be true: we were victimized by people who tried to take more than they bargained for. This has been a long-fought dispute, and the jury and judge got it right, and justice prevailed. We are excited to move forward with what we set out to do three years ago when we bought this iconic venue that is so special to so many people. We look forward to engaging with the community at large as we fully embed ourselves within the high desert community to honor Pappy + Harriet’s rich history,y starting with Pappy and Harriett and continuing at full speed through Robyn and Linda. We hope to carry their legacy forward.”
