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Judge rules in favour of Oasis in comedy dispute

Ltd. by Atlantic Entertainment Ltd (AE).After a 15-day trial, Puisne Judge the Hon. Mr. Justice Ward ruled against the company, which for a spell ran The Bermuda Comedy Club inside the Oasis nightclub.

Ltd. by Atlantic Entertainment Ltd (AE).

After a 15-day trial, Puisne Judge the Hon. Mr. Justice Ward ruled against the company, which for a spell ran The Bermuda Comedy Club inside the Oasis nightclub.

At one stage, the company, which is run by Mr. Peter Petty, had been seeking a figure of $1.9 million, which included projected income.

AE had sought special damages against the Oasis Club and its principal owners, Mr. Vivien Redford and Mr. Tony Duggan.

The firm had sued on the grounds of alleged breach of contract, conspiracy to defraud, alleged passing off of its `Bermuda Comedy Club' title, and allege unlawful interference with its economic interests.

In making his judgment, Mr. Ward awarded AE $4,250 against the defendants, which will be taken from the $23,313 the Oasis Club won against AE at another hearing last year.

The Bermuda Comedy Club was based at the Bambu Lounge/Karaoke Bar of the Oasis Nightclub between its inception in 1989 and 1991.

But the business relationship between the two parties quickly turned sour in a dispute over money.

In the beginning, the Oasis had agreed to give AE $2.50 per head, known as bar commission, for those people who paid to see acts at the Comedy Club.

In return, the Oasis would get to keep all bar revenues, which it expected to increase as a result new business brought in by the Comedy Club.

The method of calculating this bar commission comprised of a head count being taken in the Bambu Lounge half-an-hour after a comedy act had started.

But, from the outset, the Comedy Club was not successful, attracting an average crowd of only 33 per night when at least 42 paying patrons were needed for AE to make a profit.

AE's net loss for 1989 was $90,493 and by September 30, 1990, the company's deficit had grown to $177,000.

Among its debts was a substantial loan from the Oasis Ltd.

In order to improve matters, AE's bar commission was upped to $3 per head and, at Mr. Petty's suggestion, AE and the Oasis Club entered into a joint venture to provide a Karaoke Bar, where customers can sing to well-known tunes to operate immediately after the Comedy Club ended for the evening.

During the hearing it was revealed that bar takings in the Bambu Lounge after Karaoke was introduced went up from $216,000 in 1990 to $394,423 the following year.

AE's problems continued, however, and came to a head when the Oasis Club announced it was terminating its contract with AE in respect of the Comedy Club, with effect from the end of July, 1991.

For a spell, the Oasis continued to run the Comedy Club under its own management.

Mr. Petty had claimed the Oasis was trying to pass off the club as its own, but Judge Ward rejected that it had acted improperly in doing so.