Local
Metro Weekly sued for more than $1 million
Post-Newsweek lawsuit alleges fraud, seeks damages
Metro Weekly, a local LGBT magazine, is being sued over an alleged $85,000 printing debt by a company owned by Post-Newsweek Media, Inc., the media conglomerate that owns the Washington Post, according to a lawsuit filed July 8 in D.C. Superior Court. The lawsuit also seeks $1 million in punitive damages.
The lawsuit, which was first reported by the Washington Business Journal in its Aug. 6, 2010 edition (Vol.29 No.15), alleges that the company that owns Metro Weekly, Jansi LLC, and one of Jansi’s two shareholders, Randy Shulman, are responsible for a five-year-old printing debt with the Gaithersburg, Md., printing firm Comprint, a Post-Newsweek affiliate.
In addition to charging Jansi and Shulman with breach of contract for not paying the printing debt, the lawsuit accuses them of fraud for allegedly entering into a licensing agreement with Isosceles Publishing, Inc., the corporation that owned and operated Metro Weekly up until November 2007, for the alleged purpose of evading debts and liabilities.
“Upon information and belief, Mr. Shulman, Jansi, and Isosceles entered into the 2007 License Agreement with the specific intention to evade Isosceles’ creditors while continuing to publish, and reap revenue from, Metro Weekly,” the lawsuit says. “As a direct result of the defendant’s fraud, plaintiff suffered damages in a sum to be proved at trial but expected to exceed $1,000,000,” the lawsuit states in its request for punitive damages.
“We believe the lawsuit filed against Jansi LLC by Post-Newsweek is wholly without merit,” said William McLain, Jansi’s attorney.
McLain said he could not comment on any further details of the case until he files a response to the lawsuit later this month on behalf of Jansi.
“This story is totally premature for publication, and our responsive pleadings will support our claim that the lawsuit is without merit,” he told the Blade.
Although McLain has yet to file Jansi’s response to the lawsuit, Washington Business Journal quoted him as saying Post-Newsweek was not going to recover its money from Jansi because “it’s just not that corporation’s debt.”
Paul Thayer, the attorney representing Post-Newsweek, said he expects Jansi to argue in its response to the lawsuit that the printing debt was incurred by Isosceles Publishing, Inc., rather than Jansi.
Isosceles and Jansi entered into the licensing agreement in November 2007 in which Isoceles “granted to Jansi the exclusive right to publish Metro Weekly in exchange for a licensing fee,” the lawsuit says.
It says that Shulman disclosed in a deposition taken during a 2009 lawsuit filed by Post-Newsweek against Isosceles, in an earlier effort to collect the printing debt, that “each and every Isosceles employee was transferred to, and was exclusively compensated by, Jansi” after the licensing agreement took effect.
A Superior Court judge issued a judgment in Post-Newsweek’s favor on Dec. 11, 2009, ordering Isosceles Publishing to pay the $85,000 printing bill plus “pre-judgment interest at the rate of 6 percent per annum, dating from Feb. 1, 2009 to the date of judgment” along with court costs.
Thayer said Isoceles had yet to make any payments on the debt since the December judgment.
The July lawsuit argues that Jansi LLC and Shulman should be held responsible for the debt because “there has been a near complete intermingling of corporate funds, staff, and property between Isosceles and Jansi LLC.”
“Mr. Shulman has confirmed that one motive for the License Agreement was a desire to continue publishing Metro Weekly without having the publisher responsible for debts incurred by Isosceles,” the latest lawsuit says.
The lawsuit states that Sean Bugg, Shulman’s business partner, is the second of the two shareholders in Jansi LLC. Bugg is not named as a defendant in the lawsuit.
Meanwhile, in a related development, Washington Business Journal reported in the same story that “nearly $656,000 in federal and state tax liens have been filed against Isosceles,” according to data the newspaper said it gathered.
Public records available from the D.C. Recorder of Deeds, which keeps track of tax liens, show that 21 federal, D.C., or unemployment liens have been filed against Isosceles Publishing between 1996 and 2010. Thirteen are listed as a “U.S. Tax Lien.”
It could not be determined from the Recorder of Deeds docket listing of the Isosceles liens whether they are still pending or have been resolved.
McLain declined to comment on the liens.
The lawsuit states that Isosceles entered into a settlement agreement with Post-Newsweek in June 2005 to pay what at the time was a printing debt of $125,000 incurred “over a period of years.” It says that from 2005 to December 2008, Isosceles made payments totaling $40,000.
“Isosceles failed to make any further payments in accordance with the terms of the Settlement Agreement,” the lawsuit says.
Rehoboth Beach
Rehoboth’s Blue Moon is for sale but owners aim to keep it in gay-friendly hands
$4.5 million listing includes real estate; business sold separately
Gay gasps could be heard around the DMV earlier this week when a real estate listing for Rehoboth Beach’s iconic Blue Moon bar and restaurant hit social media.
Take a breath. The Moon is for sale but the longtime owners are not in a hurry and are committed to preserving its legacy as a gay-friendly space.
“We had no idea the interest this would create,” Tim Ragan, one of the owners, told the Blade this week. “I guess I was a little naive about that.”
Ragan explained that he and longtime partner Randy Haney are separating the real estate from the business. The two buildings associated with the sale are listed by Carrie Lingo at 35 Baltimore Ave., and include an apartment, the front restaurant (6,600 square feet with three floors and a basement), and a secondary building (roughly 1,800 square feet on two floors). They are listed for $4.5 million.
The bar and restaurant business is being sold separately; the price has not been publicly disclosed.
But Ragan, who has owned the Moon for 20 years, told the Blade nothing is imminent and that the Moon remains open through the holidays and is scheduled to reopen for the 2026 season on Feb. 10. He has already scheduled some 2026 entertainment.
“It’s time to look for the next people who can continue the history of the Moon and cultivate the next chapter,” Ragan said, noting that he turns 70 next year. “We’re not panicked; we separated the building from the business. Some buyers can’t afford both.”
He said there have been many inquiries and they’ve considered some offers but nothing is firm yet.
Given the Moon’s pioneering role in queering Rehoboth Beach since its debut 44 years ago in 1981, many LGBTQ visitors and residents are concerned about losing such an iconic queer space to redevelopment or chain ownership.
“That’s the No. 1 consideration,” Ragan said, “preserving a commitment to the gay community and honoring its history. The legacy needs to continue.” He added that they are not inclined to sell to one of the local restaurant chains.
You can view the real estate listing here.
The Comings & Goings column is about sharing the professional successes of our community. We want to recognize those landing new jobs, new clients for their business, joining boards of organizations and other achievements. Please share your successes with us at [email protected].
Congratulations to Tristan Fitzpatrick on his new position as Digital Communications Manager with TerraPower. TerraPower creates technologies to provide safe, affordable, and abundant carbon-free energy. They devise ways to use heat and electricity to drive economic growth while decarbonizing industry.
Fitzpatrick’s most recent position was as Senior Communications Consultant with APCO in Washington, D.C. He led integrated communications campaigns at the fourth-largest public relations firm in the United States, increasing share of voice by 10 percent on average for clients in the climate, energy, health, manufacturing, and the technology. Prior to that he was a journalist and social media coordinator with Science Node in Bloomington, Ind.
Fitzpatrick earned his bachelor’s degree in journalism with a concentration in public relations, from Indiana University.
Congratulations also to the newly elected board of Q Street. Rob Curis, Abigail Harris, Yesenia Henninger, Stu Malec, and David Reid. Four of them reelected, and the new member is Harris.
Q Street is the nonprofit, nonpartisan, professional association of LGBTQ+ policy and political professionals, including lobbyists and public policy advocates. Founded in 2003 on the heels of the Supreme Court’s historic decision in Lawrence v. Texas, when there was renewed hope for advancing the rights of the LGBTQ community in Washington. Q Street was formed to be the bridge between LGBTQ advocacy organizations, LGBTQ lobbyists on K Street, and colleagues and allies on Capitol Hill.
District of Columbia
New queer bar Rush beset by troubles; liquor license suspended
Staff claim they haven’t been paid, turn to GoFundMe as holidays approach
The D.C. Alcoholic Beverage and Cannabis Board on Dec. 17 issued an order suspending the liquor license for the recently opened LGBTQ bar and nightclub Rush on grounds that it failed to pay a required annual licensing fee.
Rush held its grand opening on Dec. 5 on the second and third floors of a building at 2001 14 Street, N.W., with its entrance around the corner on U Street next to the existing LGBTQ dance club Bunker.
It describes itself on its website as offering “art-pop aesthetics, high-energy nights” in a space that “celebrates queer culture without holding back.” It includes a large dance floor and a lounge area with sofas and chairs.
Jackson Mosley, Rush’s principal owner, did not immediately respond to a phone message from the Washington Blade seeking his comment on the license suspension.
The ABC Board’s order states, “The basis for this Order is that a review of the Board’s official records by the Alcoholic Beverage and Cannabis Administration (ABCA) has determined that the Respondent’s renewal payment check was returned unpaid and alternative payment was not submitted.”
The three-page order adds, “Notwithstanding ABCA’s efforts to notify the Respondent of the renewal payment check return, the Respondent failed to pay the license fee for the period of 2025 to 2026 for its Retailer’s Class CT license. Therefore, the Respondent’s license has been SUSPENDED until the Respondent pays the license fees and the $50.00 per day fine imposed by the Board for late payment.”
ABCA spokesperson Mary McNamara told the Blade that the check from Rush that was returned without payment was for $12,687, which she said was based on Rush’s decision to pay the license fee for four years. She said that for Rush to get its liquor license reinstated it must now pay $3,819 for a one-year license fee plus a $100 bounced check fee, a $750 late fee, and $230 transfer fee, at a total of $4,919 due.
Under D.C. law, bars, restaurants and other businesses that normally serve alcoholic beverages can remain open without a city liquor license as long as they do not sell or serve alcohol.
But D.C. drag performer John Marsh, who performs under the name Cake Pop and who is among the Rush employees, said Rush did not open on Wednesday, Dec. 17, the day the liquor board order was issued. He said that when it first opened, Rush limited its operating days from Wednesday through Sunday and was not open Mondays and Tuesdays.
Marsh also said none of the Rush employees received what was to be their first monthly salary payment on Dec. 15. He said approximately 20 employees set up a GoFundMe fundraising site to raise money to help sustain them during the holiday period after assuming they will not be paid.
He said he doubted that any of the employees would return to work in the unlikely case that Mosley would attempt to reopen Rush without serving liquor or if he were to pay the licensing fee to allow him to resume serving alcohol without having received their salary payment.
As if all that were not enough, Mosley would be facing yet another less serious problem related to the Rush policy of not accepting cash payments from customers and only accepting credit card payments. A D.C. law that went into effect Jan. 1, 2025, prohibits retail businesses such as restaurants and bars from not accepting cash payments.
A spokesperson for the D.C. Department of Licensing and Consumer Protection, which is in charge of enforcing that law, couldn’t immediately be reached to determine what the penalty is for a violation of the law requiring that type of business to accept cash payments.
The employee GoFundMe site, which includes messages from several of the employees, can be accessed here.
Mosley on Thursday responded to the reports about his business with a statement on the Rush website.
He claims that employees were not paid because of a “tax-related mismatch between federal and District records” and that some performers were later paid. He offers a convoluted explanation as to why payroll wasn’t processed after the tax issue was resolved, claiming the bank issued paper checks.
“After contacting our payroll provider and bank, it was determined that electronic funds had been halted overnight,” according to the statement. “The only parties capable of doing so were the managers of the outside investment syndicate that agreed to handle our stabilization over the course of the initial three months in business.”
Mosley further said he has not left the D.C. area and denounced “rumors” spread by a former employee. He disputes the ABCA assertion that the Rush liquor license was suspended due to a “bounced check.” Mosley ends his post by insisting that Rush will reopen, though he did not provide a reopening date.
