Sturbaum

Monroe Circuit Judge Elizabeth N. Mann ruled firmly in favor of Kerasotes on Monday, weeks after several Bloomington residents took the theater chain to small-claims court over what they considered an illegal restraint of trade affecting the old Von Lee theater.

In the two-paragraph judgment order, Mann stated the plaintiffs — area residents Chris Sturbaum, Ron and Rebecca Burchart and Kevin Bazur — failed to prove they had been overcharged by Kerasotes at Showplace 11, east, and Showplace 12, west, because of illegal trade restraint and diminished local competition.

The judge stated it was not unreasonable or illegal for Kerasotes to "protect its multimillion-dollar investment" in its newer theaters by barring movies from being shown in the old movie house for 15 years.

And in a move that surprised Sturbaum, Mann went further: She stated that even the original "no-movie" clause, which indefinitely barred films from being shown at the Von Lee, would not have affected her decision.

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Although the ban was initially unlimited, the company's president capped it at 15 years shortly before the January court date.

The old Von Lee theater, a designated historic structure on Kirkwood Avenue across from Indiana University's Sample Gates, has been the center of a controversy between the Kerasotes chain and historic preservationists including Sturbaum who have been fighting to keep a working movie theater downtown.

Kerasotes bought the old movie house in 1976 but closed it in 2000 after opening the expansive theater complex Showplace 12, west. The company later put the building up for sale, but removed the seats and projection equipment. When the building sold in 2003, its covenant stated that the new owners could not show movies there.

The company's president, Tony Kerasotes, acknowledged in court that his company wanted to limit competition by imposing the restrictions.

But what Kerasotes sees as sound business practice, Sturbaum views as a violation of antitrust laws.

Since the closure of the old theater, Sturbaum — who joined the Bloomington City Council in January — has organized weekly demonstrations and a popcorn boycott of the company's other theaters in town in an attempt to affect the no-movie clause.

But Mann stated in her judgment that "although Plaintiffs eloquently voice historical preservation concerns and nostalgic sentiment shared by some of Bloomington's citizens, they are not the exclusive keepers of the 'public interest'" in this case.

She added, "Here, the loss of a downtown theater is outweighed by the benefits of modern seating, superior sound systems, convenient parking and expanded movie options."

Both Tony Kerasotes and Sturbaum thought it was noteworthy that Mann directly addressed the restraint of trade issue, since that was not required of her in a small-claims case.

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"What surprised me the most," Sturbaum said, "was that she considered it reasonable to forbid theater use forever."

Kerasotes hopes the ruling will improve his company's standing in the Bloomington community. "Otherwise," he said, "the public misconception might have lingered."

Kerasotes said he was pleased by the ruling. "We definitely agree with the judge," he said, jokingly.

He added, more seriously, "We always believed it was a legal restriction, and we thought the plaintiffs were just way off base."

Sturbaum said he harbored no hard feelings, in spite of his disappointment. "It was all done out of love for the community and love for the theater," he said. "We do the best we can, and whatever happens, happens."

He said the Save the Von Lee Committee, which he founded in 2001, will meet Saturday to discuss the group's next move — specifically, "whether we're finished or not."

Later Monday, Sturbaum called with a more resolute statement: "The judge has shut this door, but we'll keep looking for a door, because these theaters are important, and their use is important to downtowns."

Reporter Katy Murphy can be reached at 331-4378, or by e-mail at kmurphy@heraldt.com.