Dueling Masonic Suits

The Masonic has faced several financial issues in the past year including shutoff notices from DTE Energy in December for non-payment.

It was saved from the auction block in June when hometown hero Jack White stepped in to cover the venue’s $142,000 tax bill.

The association that owns the venue alleged sued for breach of contract. It said financial troubles began during its relationship with management company Halberd Holdings LLC, which “failed in its mission … resulting in promoters refusing to do business with the Masonic Temple, vendors refusing to provide services without upfront payment.”

But Halberd countersued in January alleging the Temple was already overwhelmed with debt when it stepped in to manage and also claims the company has an ownership stake in the building, according to the Detroit Free Press.

The ownership claim stems from another company that at one time invested in Halberd – Longstock III.

At one time, discussions took place between Longstock and the Masonic regarding a sale of the building, but after Longstock pulled out of Halberd, Masonic officials changed their tune, noting any similar agreements with Halberd were out of the question, the paper said.

Further, Halberd reportedly claims that when it was locked out of the building after the management deal went south, it lost access to expensive production equipment and $50,000 that it kept in a safe.

Masonic attorney Jason Abel told the Free Press Halberd has no rights to the temple.

“I think all of their claims are egregious and without merit.

The fact that they’re contending that they have any right to take ownership of the Masonic Temple is wholly baseless,” he said. “The Masonic Temple is an important fixture in the Detroit community, and it’s unfortunate that certain individuals are trying to undermine its effective operation in an attempt to obtain monies that they’re not entitled to.”

Abel has filed a motion for sanctions to be imposed against Halberd Holdings, citing delays in turning over discovery documents, the paper said.