Unions Take Broadway Show ‘Paradise Square’ to Court for $350,000 in Unpaid Benefits, Wages
Actors’ Equity and the union representing theatrical designers are separately taking Broadway musical Paradise Square to court for close to $350,000 total in owed benefit contributions, wages and other fees.
United Scenic Artists, Local USA 829, which is a part of the International Alliance of Theatrical Stage Employees, is taking legal action against the production company after winning more than $150,000 in unpaid wages and benefits in arbitration, but not yet receiving any of the award for the impacted designers, according to court filings from early July. Separately, Actors’ Equity is seeking $189,877 in unpaid union dues and benefit fund contributions and interest, after the production failed to keep up with a payment schedule set up as part of a settlement agreement in May, according to a court filing.
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The money may be difficult to come by. Paradise Square announced Monday that it would close July 17, following several weeks of low box office sales. In the most recent week of reported grosses, ended July 10, the production played to a capacity of 48 percent and brought in just $266,926, a small sum for a musical of that size.
These legal actions detail multiple claims of owed payments on Paradise Square. And there is the possibility of more fallout ahead. A knowledgeable source tells THR that other contractors are still in the midst of negotiating payments, but have yet to file legal cases.
The production declined to comment, via a spokesperson, on either legal case or other pending matters.
“Since opening, the producers of Paradise Square have touted the incredible work of the designers, artists, and professionals both on and off the Barrymore stage,” Carl Mulert, the national business agent for Local USA 829, wrote in a statement to THR. “Yet, prior to announcing the production’s close, the producers have known for months that they owe the designers and assistant designers who have built the world of Paradise Square thousands upon thousands in unpaid wages and benefit contributions. Now that the production is closing, who is being stiffed? Our members.”
The new musical, which features an elaborate set and a cast of 40, opened on Broadway on April 3, following previous runs in Chicago and at the Berkeley Repertory Theater in California. In a rare move, first reported by Forbes, the production increased its capitalization in May to $15 million from $13.5 million.
While the production received 10 Tony Award nominations and Joaquina Kalukango took home the prize for best actress in a leading role in a musical, the show has been followed by controversy since its start. This was the first big show back for theater producer Garth Drabinsky, who served 17 months in prison starting in 2011 after being convicted of fraud in Canada for misstating finances during his time as executive of a publicly traded theater production company.
Though Drabinsky has the lead producing credit on the show, the designers’ union is bringing legal action against Paradise Square Broadway Limited Partnership, the production company created to handle the finances of the show, and Bernard Abrams, president of that limited partnership.
Actors’ Equity filed legal action against Paradise Square Production Services Inc., which also lists Abrams as the principal.
On Feb. 21, Actors’ Equity told its members not to report to rehearsal for Paradise Square due to a contract dispute with the production. Members returned to work the next day, but, as evidenced by the pending legal matter, issues are still being resolved.
In the complaint, which was sent to the Supreme Court of the State of New York in early July, the attorney for Actors’ Equity said the union reached a settlement agreement with Paradise Square on May 24, 2022. Abrams later filed an affidavit of confession of judgment, in order to provide the union additional security, and agreed to pay the $412,807 in unpaid dues deductions and benefit contributions as well as interest on that amount. The production paid $224,900 of it, but failed to keep up with the payment schedule, according to the court filing.
“Equity is pursuing every avenue available to ensure the actors and stage managers of Paradise Square receive everything their contract guarantees them,” an Equity spokesperson told THR.
Though the designers’ union was awarded $156,986 in arbitration on June 1, the union says the production has yet to pay any of that amount. The union filed to enforce the arbitration award in the United States District Court Southern District of New York.
The initial award includes $38,703 in wage payments, $60,500 in weekly guarantees, $22,724 in pension and welfare contributions, $7,067 in annuity payments, $11,192 in reimbursements for out-of-pocket expenses and $3,028.62 in union dues, according to the filing. Due to accumulated unpaid weekly royalties, the total amount owed has now grown to $190,000, according to the union.
In addition to the initial fee, the designers’ union says it is also owed interest payments on unpaid pension contributions and on welfare contributions dating back to April 3, as well as the payment of attorney fees.
If full payment is not made by Dec. 1, according to the designers’ arbitration award, the production rights, owned by the producer, are to be transferred to four of the designers at the center of the suit: scenic designer Allen Moyer, costume designer Toni-Leslie James, lighting designer Donald Holder and sound designer Jon Weston.
“The producers of Paradise Square have a responsibility to prioritize and ensure the well-being of their employees, which includes the basic expectation to be paid for their work and receive all contractually required benefit contributions — especially as we continue to emerge from a global pandemic. Our members have lived up to their responsibilities and obligations. Now it’s time for the producers of Paradise Square to do the same,” Mulert said in the statement.
