The climactic battle in a three-year war between Clear Channel and the city of Mountain View begins Monday in a San Jose courtroom. At stake: $15.6 million in damages claimed by the city, as well as the future of one of the most successful outdoor amphitheaters in the country.
As the trial commences — barring an unexpected last-minute settlement — over charges of fraud and racketeering at Shoreline Amphitheatre, city officials continue to paint themselves as the protagonists in a modern-day David-and-Goliath story. The allegory has resonated with members of the public, some of whom have gone so far as to write letters to the city council or speak at meetings thanking them for taking on “Goliath.”
“They sued us to bully us,” said city attorney Michael Martello. “They’re this big gorilla, we’re this little tiny city, and they were going to teach us a lesson.”
But city officials did not back down, and as the trial nears, they are growing more confident in their chances of winning.
Both the emotional tenor and the stakes of the battle have intensified since the company filed suit to block city auditors from inspecting the amphitheater’s books in 2003. The judge gave the city its slingshot by ordering the company to comply. It responded to the judge’s order by restricting access to some files, putting elected leaders and city officials through marathon depositions, and swamping city staff with documents.
Last month, the auditors completed their work, having identified more than $80 million in hidden revenues. The staff report that accompanied the audit blasted the company, only the latest volley in an ongoing struggle to frame the debate that has played out in court briefs and public statements.
“I can’t think of another [case] that’s been anywhere near as ugly as this one has,” Gary Bongiovanni, editor-in-chief of Pollstar magazine, a concert industry trade publication, said Monday.
“Usually these kinds of disputes will play out quietly and not in the pages of the local newspaper,” said Bongiovanni. “The allegations are so inflammatory. When you accuse someone of cheating you of millions of dollars, it makes a good headline.”
So far, the city-sponsored audit has provided the basis of the allegations. Lawyers for the company, a Clear Channel spin-off called LiveNation, say the city is trying to capitalize on Clear Channel’s poor public image even though the conglomerate let go of its outdoor entertainment division late last year.
“The city wants to hire you as a public relations officer,” Jim Wagstaffe, the lead attorney for LiveNation, told the Voice last week. “They want you to write a story that inflames the jury.”
“Here’s the deal,” he added. “We’re going to go and win this trial, and it will all be moot.”
E-mail Jon Wiener at jwiener@mv-voice.com
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