Hawkeye Entertainment Seeks Injunctive Relief Concerning a Lease Involving Pacific Stock Exchange Building

September 20, 2021, Central District of California – Debtors and Debtors in Possession Hawkeye Entertainment, LLC and W.E.R.M. Investments, LLC ( “Plaintiffs”) brought a complaint against Smart Capital Investments I, LLC and several others, seeking damages, preliminary injunction, a temporary restraining order and declaratory relief for alleged willful violation of the automatic stay, breach of contract, breach of the implied covenant of good faith and fair dealing, negligent interference, intentional interference, et al.

The Debtors seek to protect its most valuable asset, the Lease Agreement, dated July 17, 2009, between the parties involving a real property, commonly known as the Pacific Stock Exchange Building, located in California. The Plaintiffs urge the Court to issue a preliminary injunction enjoining Defendants to engage in any acts and actions that interfere with the operations of the Plaintiffs and the business of WERM; trespassing or otherwise entering the premises during non-operational hours, except for proper purposes authorized under the Lease.

The Plaintiffs also argue that Smart Capital has breached the lease, by being delinquent on real property taxes; interfering with Plaintiff’s use and enjoyment of the premises; failing to properly maintain and repair the premises; failing to secure the requisite occupancy certificate required of it from the Lease under applicable laws. The Plaintiff alleges that as a direct and proximate result of Smart Capital’s breach of lease, Plaintiffs have suffered and will continue to suffer damages in an amount to be determined according to proof at trial, but not less than $2,000,000, plus interest thereon at the contractual and legal rate.

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