Stinson Secures Complete Victory for Hawkeye Entertainment in Lengthy Commercial Lease Dispute

09.30.2026

Stinson LLP attorneys Sandford Frey and Robyn Sokol , along with co-counsel Jordan Shaw, Zach Ludens and Lauren Palen of Shaw Lewenz, prevailed on behalf of client Hawkeye Entertainment, LLC following a four-day trial in the U.S. Bankruptcy Court for the Central District of California.

Stinson was retained in a dispute that spanned more than 15 years, during which Frey successfully defended against repeated efforts by the landlord and its principal to wrongfully evict Hawkeye Entertainment from the historic Pacific Stock Exchange Building at 618 S. Spring Street in Los Angeles — home to Exchange LA, a popular entertainment and event venue. The landlord had previously entered into a settlement in 2014 that included full and complete releases. Then in 2019, without warning or prior notice to Hawkeye or its subtenant, the landlord (through a prior entity) alleged various nonmonetary defaults, most of which lacked specificity as to the exact nature of such defaults, with a 15-day cure deadline and then, prior to expiration of the 15 days, provided a three-day notice which purported to declare Hawkeye and its subtenant in default and declare a forfeiture of the lease and sublease. The matter then proceeded through a four-day trial in 2020 (resulting in a judgment in favor of Hawkeye) and five subsequent appeals, resulting in nearly $1 million in attorneys' fees awarded against the landlord.

Undeterred, in 2023 the landlord served three subsequent three-day default notices and asserted numerous nonmonetary default theories (one of which predated the 2014 settlement and some of which predated the 2020 trial), forcing Hawkeye to again seek protection under Chapter 11 of the Bankruptcy Code to preserve its lease and sublease. In opposition to Hawkeye's assumption of its commercial lease and sublease, among other actions, the landlord also filed counterclaims alleging breach of contract, nuisance, waste, negligence, and ejectment, among other claims.

After considering all evidence and testimony, the Court ruled in favor of Hawkeye on every issue and approved Hawkeye's assumption of its lease and sublease. The Court found no default of any kind — monetary or non-monetary — existed, dismissed all of the landlord's counterclaims, and entered a permanent injunction protecting Hawkeye's continued operation of the premises. The Court further found that the landlord's claims were "meritless, motivated by malice, and lacking a basis in law or fact."

Importantly, the Court's decision contains findings that will hopefully put a stop to future legal challenges. The ruling binds the landlord's principal, all related entities, and anyone acting on their behalf so that they cannot re-litigate these issues in other courts. Noting the landlord's history of recycling old arguments as new claims, the Court stated that its findings are "necessary to bring finality to the Parties' disputes and to prevent further vexatious or duplicative litigation."

"These findings represent a major step toward putting an end to nearly 15 years of litigation and the landlord's persistent efforts to wrongfully evict our client," said Frey. "The permanent injunction and the Court's strong language regarding the preclusive effect of its rulings should bring much-needed finality to this matter."

Frey is a partner in Stinson's Los Angeles office and a member of the firm's Bankruptcy & Creditors' Rights practice. He brings more than 42 years of experience guiding clients through complex restructurings, bankruptcies, and financial transactions, with particular depth in the entertainment industry. Sokol is a partner in the firm's Los Angeles office who delivers strategic, results-driven counsel in insolvency and restructuring matters at both the bankruptcy court and appellate court levels.