Debate between MU, Tan Time nears conclusion

A hearing will decide if The Spa will stay on campus.

By David Conway

Published Oct. 27, 2009

The long-standing battle over the tanning beds at the Student Recreation Complex drew closer to a conclusion Friday when a hearing was held to decide whether The Spa, which is owned by Tan Time LLC, would remain open for the immediate future.

Tan Time's lawyer Thomas Schneider said the hearing would determine the eventual closing date of The Spa.

"It was a hearing on a permanent injunction," Schneider said. "The judge is deciding when the lease can be terminated."

Although the hearing was one of the last steps toward a ruling, MU lawyer Kelly Mescher said it's hard to determine when that ruling will come in.

Mescher said both parties were given 15 days to file their own proposed findings of facts and conclusions, which are summaries of the case's facts and the legal conclusions to be drawn from those facts. The judge will choose between the two sides' findings or, if neither proves to be satisfactory, write his own.

"We won't have a result until the judge files findings of facts and conclusions," Mescher said.

The debate over when the lease can be terminated stems from a contract dispute. Both sides insisted their reading of the contract was accurate.

Mescher said a clause in the university's contract allows for the canceling of the contract with 60 days written notice at the end of any lease year.

"The university has maintained that they have the option to terminate the contract with Tan Time, the limited liability company that runs The Spa, with proper notice," Mescher said.

Schneider said the lease could not be terminated until the lease's first renewal date, which falls at the end of next year.

"We are going to propose a finding that the lease can be terminated Dec. 31, 2010," Schneider said.

In addition, Tan Time will be requesting $32,000 from the university in lost profits due to an attempted closure of The Spa in August 2008, Schneider said. The Spa was reopened after the corporation obtained a temporary restraining order against the university. An additional $158,000 from MU will be requested for the money Tan Time has invested into a location it will be forced to vacate early.

"We made two claims for damages," Schneider said. "One is for lost profits stemming from the attempted closing of The Spa in the summer of 2008. The second is for the depreciation of the value of the lease we're leaving behind."

When a ruling is issued, the debate will not necessarily be settled. Although reluctant to speculate on the future of the case, Mescher said continuing the legal dispute after the judge decides on a result is a possibility.

"There would be the opportunity to appeal the decision," Mescher said. "With no ruling in, it's hard to say what will happen."