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sonrisa salvaje
10-15-2010, 10:11 AM
14-Oct-10Cabo Wabo Failure Fuels $589 Million Lawsuit Against Sammy Hagar And Others
Submitted by: Dana


Developer Milt Barbis and two companies associated with building Fresno's Cabo Wabo Cantina have filed a federal lawsuit that blames rocker Sammy Hagar and others for the demise of the short-lived restaurant and nightclub, reports John Ellis of The Fresno Bee.


The lawsuit, filed in U.S. District Court in Fresno, seeks close to $589 million from Hagar, his Red Head Inc., two other businesses and an individual.


"For whatever reason, somebody made a decision somehow somewhere that they didn't want that club in Fresno," said Southern California attorney Richard Hamlish, who is representing Barbis, as well as Fresno Rock Taco LLC and Zone Sports Center LLC. "Whether that was Sammy Hagar, or whom, I don't know."


He added that "any attempts subsequently to operate the club have been stifled."


Barbis' lawsuit describes a disastrous and chaotic string of events from the moment the contract was signed to open one of Hagar's Cabo Wabo cantinas at Granite Park.


It paints Hagar as an arrogant tyrant who threatened Barbis and micromanaged the design and construction of the cantina, which resulted in millions of dollars in cost overruns.


When Barbis asked why he couldn't use the beer and tequila that was most profitable, Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."


According to the lawsuit, in December 2006 Fresno Rock Taco entered into a license agreement with Red Head to develop a Cabo Wabo in Fresno. The lawsuit claims the agreement had no clause relating to the brand of alcoholic beverage that had to be served.


The following March, the lawsuit said, Hagar announced the Fresno Cabo Wabo at a San Francisco news conference, which was done without Fresno Rock Taco's knowledge and was in violation of "an oral agreement" to make the announcement locally.


Still, it was Cabo Wabo that sparked the development of Granite Park's business side. Nine additional tenants signed on, the suit says, based on Cabo Wabo being the anchor tenant.


Soon, however, Hagar and an associate were dictating construction details down to where plants and trees outside the building should be located. Hagar then demanded construction be halted for a major building change -- a 40-foot-high lighthouse on Cabo Wabo's exterior wall. Those demands delayed construction by nine months, the suit says.


Other changes and delays are listed in the suit as well. Eventually, it claims, Hagar left a message on Barbis' cell phone voice mail that said multiple times: "I am going to [expletive] kill you." Barbis played the message to "multiple people," the suit says, but after it was played for the Hagar associate named in the lawsuit, he "grabbed Barbis' cell phone and erased the message," the suit says.


The cantina opened on Aug. 28th, 2008. Hagar was supposed to appear, but contract disputes delayed his appearance. He demanded new contracts, the suit said, and a two-night appearance for around $18,500 became one night for $28,000.


Hagar played at the new club on Oct. 28th, 2008. By December, the club closed after Hagar terminated the license. In January 2009, Red Head Inc. filed a lawsuit against Barbis' Fresno Rock Taco, calling Fresno's Cabo Wabo "a disaster."


A few months later, the suit was settled. In a November 2009 bankruptcy filing, Barbis listed a 25% ownership stake in Fresno Rock Taco and Zone Sports Center. Hagar's representatives and Barbis could not be reached to comment.


source: fresnobee.com

sonrisa salvaje
10-15-2010, 10:21 AM
Here is an interesting story about the guy who filed suit. Appears he is being investigated for illegal activity including insurance fraud:

Accusations of felony crimes against Milt BarbisBy KSEE News


July 30, 2010

Two weeks ago federal, state and local authorities raided the Granite Park business development and the home of Granite Park developer Milt Barbis. At the time, few details were given about why the searches were being conducted. Now court documents that were made public reveal that Barbis and some of his business partners are being investigated for felony crimes involving insurance fraud and tax evasion.
A state insurance investigator states in the documents that Barbis is believed to have filed false police reports about stolen equipment to collect insurance money. Among the allegations, that Barbis claimed dozens of televisions were stolen when they actually were given to employees in lieu of wages and that he made insurance claims on items that were repossessed by companies he owed money. He's also accused of falsifying wage payments to lessen his workers compensation insurance payments and that he paid himself $200,000 to manage the non-profit part of the Granite Park complex and never reported that payment.
KSEE 24 News tried to contact Barbis on Monday for comment, but never heard from him.

Blaze
10-15-2010, 10:34 AM
Interesting.

chefcraig
10-15-2010, 10:41 AM
A state insurance investigator states in the documents that Barbis is believed to have filed false police reports about stolen equipment to collect insurance money. Among the allegations, that Barbis claimed dozens of televisions were stolen when they actually were given to employees in lieu of wages and that he made insurance claims on items that were repossessed by companies he owed money.

Coincidentally, this was pretty much the plot of a Dukes Of Hazzard rerun on CMT the other evening. Boss Hogg had the tv sets hijacked from a trucking line, collected the insurance money and blamed the theft on the Dukes. You can imagine the outcome.

Nitro Express
10-15-2010, 11:26 AM
It paints Hagar as an arrogant tyrant who threatened Barbis and micromanaged the design and construction of the cantina, which resulted in millions of dollars in cost overruns.



When Barbis asked why he couldn't use the beer and tequila that was most profitable, Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."

So Harar is a tyrant and nobody wants to drink his tequila even at the Cabo Wabo.

ZahZoo
10-15-2010, 12:41 PM
The first mistake was chosing Fresno for a location... another California shithole...

Diamondjimi
10-15-2010, 12:57 PM
Meh...

VHscraps
10-15-2010, 02:12 PM
Coincidentally, this was pretty much the plot of a Dukes Of Hazzard rerun on CMT the other evening. Boss Hogg had the tv sets hijacked from a trucking line, collected the insurance money and blamed the theft on the Dukes. You can imagine the outcome.

First I'm gonna get Bo Duke, then I'm gonna get Luke Duke ... then I'm gonna get DAISSSSSSSSY DOOK

The Hagar saga as an episode of The Dukes of Hazzard. Great idea. I have long believed that even with his more meager record sales throughout his career, he made a shit load of money more than VH ever did. Ed Leffler wheelin' an' dealin' and getting him million dollar deals to provide average songs for bad movies.

Sam's always been a businessman. Read his aborted biography, Red Storm Rising - he started buying up vintage wines in the early 70s. Not, I hasten to add, for the purposes of DRINKING them, like any sane rock'n'roller would - but as investments. Right there is the difference with Ed - what was he on? Smoking Loon? Coupla bucks a bottle!!

sadaist
10-15-2010, 03:10 PM
The first mistake was chosing Fresno for a location... another California shithole...


Was my first thought too. Tahoe & Vegas I totally understood. But Fresno? Just about the oddest location you could possible think of.

SunisinuS
10-15-2010, 03:11 PM
"It's all over but the SHHHOuting!"

Dave avoided Sammy all those times on that tour when Sammy was knocking on his door with: "There goes Sammy again, trying to sell some more Cabo Wabo Tequila"....Dave already knew Sammy just wanted a loan.


Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."

Pot calling the kettle! We have your baby!

LMFAO

FORD
10-15-2010, 03:12 PM
When Barbis asked why he couldn't use the beer and tequila that was most profitable, Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."


As much as I hate defending Hagar, there IS a valid point here.

Not that he's a "hall of fame rock star", because we all know the piece of shit did nothing to deserve that honor.

But if you are going to operate a "Cabo WaboŽ" franchise, then it's to be expected that you would use their main product, "Cabo WaboŽ" tequila.

I really can't blame the Ched Rocker if he pulled the plug for that reason.

Nitro Express
10-18-2010, 03:19 AM
The first mistake was chosing Fresno for a location... another California shithole...

Hmmm. Never been there. I always thought Barstow was a shit hole.

Nitro Express
10-18-2010, 03:26 AM
My brother in law goes to the original Cabo Wabo in Baja Mexico every year and loves the place. He is not so much a Sammy fan as a VH fan but just went to the place to check it out and he says if you are a VH fan there is some cool memorabilia in there. He says the place has a nice stage area and has some good bands and the food is good as well. He went to the one in Tahoe and just said it didn't have the vibe the original one had. So I think it's like trying to replicate let's say the Rainbow Bar and Grill in a way. It just wouldn't work and the original would be the best.

ace diamond
11-01-2010, 03:21 PM
14-Oct-10Cabo Wabo Failure Fuels $589 Million Lawsuit Against Sammy Hagar And Others
Submitted by: Dana


Developer Milt Barbis and two companies associated with building Fresno's Cabo Wabo Cantina have filed a federal lawsuit that blames rocker Sammy Hagar and others for the demise of the short-lived restaurant and nightclub, reports John Ellis of The Fresno Bee.


The lawsuit, filed in U.S. District Court in Fresno, seeks close to $589 million from Hagar, his Red Head Inc., two other businesses and an individual.


"For whatever reason, somebody made a decision somehow somewhere that they didn't want that club in Fresno," said Southern California attorney Richard Hamlish, who is representing Barbis, as well as Fresno Rock Taco LLC and Zone Sports Center LLC. "Whether that was Sammy Hagar, or whom, I don't know."


He added that "any attempts subsequently to operate the club have been stifled."


Barbis' lawsuit describes a disastrous and chaotic string of events from the moment the contract was signed to open one of Hagar's Cabo Wabo cantinas at Granite Park.


It paints Hagar as an arrogant tyrant who threatened Barbis and micromanaged the design and construction of the cantina, which resulted in millions of dollars in cost overruns.


When Barbis asked why he couldn't use the beer and tequila that was most profitable, Hagar allegedly replied: "Because I [expletive] said so. I'm a hall of fame rock star. I can do what I want."


According to the lawsuit, in December 2006 Fresno Rock Taco entered into a license agreement with Red Head to develop a Cabo Wabo in Fresno. The lawsuit claims the agreement had no clause relating to the brand of alcoholic beverage that had to be served.


The following March, the lawsuit said, Hagar announced the Fresno Cabo Wabo at a San Francisco news conference, which was done without Fresno Rock Taco's knowledge and was in violation of "an oral agreement" to make the announcement locally.


Still, it was Cabo Wabo that sparked the development of Granite Park's business side. Nine additional tenants signed on, the suit says, based on Cabo Wabo being the anchor tenant.


Soon, however, Hagar and an associate were dictating construction details down to where plants and trees outside the building should be located. Hagar then demanded construction be halted for a major building change -- a 40-foot-high lighthouse on Cabo Wabo's exterior wall. Those demands delayed construction by nine months, the suit says.


Other changes and delays are listed in the suit as well. Eventually, it claims, Hagar left a message on Barbis' cell phone voice mail that said multiple times: "I am going to [expletive] kill you." Barbis played the message to "multiple people," the suit says, but after it was played for the Hagar associate named in the lawsuit, he "grabbed Barbis' cell phone and erased the message," the suit says.


The cantina opened on Aug. 28th, 2008. Hagar was supposed to appear, but contract disputes delayed his appearance. He demanded new contracts, the suit said, and a two-night appearance for around $18,500 became one night for $28,000.


Hagar played at the new club on Oct. 28th, 2008. By December, the club closed after Hagar terminated the license. In January 2009, Red Head Inc. filed a lawsuit against Barbis' Fresno Rock Taco, calling Fresno's Cabo Wabo "a disaster."


A few months later, the suit was settled. In a November 2009 bankruptcy filing, Barbis listed a 25% ownership stake in Fresno Rock Taco and Zone Sports Center. Hagar's representatives and Barbis could not be reached to comment.


source: fresnobee.com
:lmao:
thanks, man.
i needed a good fucking laugh today!

GAR
11-01-2010, 03:28 PM
So Harar is a tyrant and nobody wants to drink his tequila even at the Cabo Wabo.

I was wondering did Hagar sell off his booze line just to cash out, or was there some other liability forcing him to do so?

My understanding was Cabo Wabo was a profitable product up to the point he got bought out.

Now it looks like he fucked up and has to hide his assets. His finacial ones, not the ASSEttes in the big yellow Snuggie pajamas. What a fucking idiot.

Nitro Express
11-01-2010, 05:15 PM
I think Hagar owns the Cabo Wabo brand but he sold half of his tequila business off and got I believe $80 million for it. It was probably a good move, once something grows to a certain level it's just more to manage and is the brand going to hold up? I think he just saw expanding the brand was going to be a headache and not worth it.

Terry
11-01-2010, 09:44 PM
Whatever. Anyone opening a Cabo Wabo franchise deserves to go down in flames.

Kristy
11-02-2010, 12:48 PM
I'll admit this (and you can ban me for a lifetime because this is a heavy confession) I've been to his Cabo Shithole In Vegas and it is one of the most over-priced, poorly run watering holes in that town. Rude waitresses, bartenders who don't know shit about making a Cosmopolitan (yeah, pseudo-sophistication snobbery, I know) and this sinking feeling the joint used to be a T.G.I.F. franchise.

Nitro Express
11-02-2010, 12:57 PM
The Cabo Wabo brand was never strong enough to franchise. You have to have something good enough to intimidate with. You then show up unannounced and check the quality and if it doesn't meet your standards you threaten to pull the franchise and strong arm the owner into submission. If you don't do that, the franchise goes to hell.

Nitro Express
11-02-2010, 12:59 PM
Successful franchises basically have one person behind the scenes making it happen. Once you become publicly owned it goes to corporate shit because ownership is too diluted.