Shakespeare Theatre Co.'s Suit Against DC Landlord OK'd

Law360, New York (December 4, 2012, 3:58 PM EST) -- A Washington, D.C., judge on Friday rejected nonprofit theater operator Lansburgh Theater Inc.'s effort to toss a suit brought by tenant the Shakespeare Theatre Co. to enforce its articles of incorporation and prevent the landlord from exerting undue control over the company.

In an oral ruling during a hearing Friday, Judge John R. Johnson rejected a motion to dismiss filed by Lansburgh and its individual operators, setting the stage for a preliminary injunction hearing set to take place next week.

The theater company alleges that Lansburgh is in breach of its fiduciary duty as a special charity created to support STC,...

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