STUDIO CITY : Suit Against Golf Operator Dismissed

A Los Angeles Superior Court judge dismissed a lawsuit Thursday against the operators of a Studio City golf course, delivering a blow to owners of the land who wanted to renegotiate the lease or evict the operators.

“I’m elated,” said George McCallister, golf course manager.

“I’m sure that the rest of the neighborhood is happy they aren’t going to lose their golf course,” he said.

The dispute revolved around a 36-year-old lease that allows Studio City Golf and Tennis to pay just $1,000 a month to operate the nine-hole course--located on 17.2 acres of prime real estate in the heart of Studio City.

In May, Weddington Investment Partnership, which owns the site, learned that the facility’s operating permit had expired in 1985.

This prompted Guy Weddington McCreary and his partners to attempt to renegotiate the lease, or to sell or lease the land to new tenants at what McCreary called a “fair market price.”

To do this, the partnership filed a lawsuit this summer that claimed the cheap lease was nullified when the permit expired.

Both sides met at least once to renegotiate the 50-year lease with no progress.

In September, Judge Joseph Kalin refused to dismiss the suit against Studio City Golf and Tennis, scheduling a trial that was to begin Tuesday. And on Nov. 1, a city zoning official denied a conditional use permit to the course’s operators.

But on Thursday, Kalin reversed himself and dismissed the suit.

According to Larry Iser, the Century City-based attorney for Studio City Golf and Tennis, Kalin’s ruling reaffirmed that his client had acquired a vested right in the operation of the golf course, despite the lapsed conditional use permit.

“We’re pleased that the court understood and interpreted the lease in accordance with the reality of what has gone on in the last 36 years and did not allow the landlord to seize upon a purported loophole to deprive Studio City Golf of its business,” Iser said.

Although McCreary said as recently as last week that Weddington Partnership no longer has plans to develop the site, Jerald Gale, an attorney for the partnership, said the judge’s decision may not end the struggle between owner and operator.

“Obviously my client is disappointed,” Gale said.

“My client has a right to appeal and we are presently considering other options,” he said.