Nebraska Supreme Court dismisses AMC, Woodsonia lawsuit due to lack of jurisdiction

GRAND ISLAND, Neb. — The Nebraska Supreme Court has ruled a civil lawsuit between a movie theater operator and a developer must head back to Hall County District Court and be dismissed.

AMC, who formerly operated a seven-screen theater at the Conestoga Mall, sued Woodsonia, who is currently redeveloping the former mall into the Conestoga Marketplace, arguing it illegally terminated its lease.

Woodsonia sought to terminate AMC’s lease under a provision in the lease which would allow it to terminate the lease under the eminent domain provisions.

On March 15, 2023, the Community Redevelopment Authority adopted a resolution that authorized them “to begin negotiations and the process of exercising its eminent domain powers” if Woodsonia and AMC were unable to reach an agreement regarding the early termination of its lease.

The resolution also stated Woodsonia would “pay or deposit the fair market value for the remainder of the lease minus the rent AMC would have had to pay, as well as the relocation cost reimbursement.”

The developer’s lawsuit against AMC said Woodsonia had numerous attempts to negotiate with AMC. The opinion said Woodsonia proposed a settlement offer with AMC for $185,000, which AMC did not accept. He added this shows “good faith attempts at negotiation” had occurred.

AMC’s lease was terminated March 31, 2023, but the theater was found to still be in operation after that time.

The Hall County Court ruled in favor of Woodsonia, but AMC appealed to the Hall County District Court, who also sided with Woodsonia. AMC then appealed the case to the Nebraska Supreme Court.

In its opinion, the Nebraska Supreme Court remanded the case back to Hall County District Court with direction to dismiss, saying both courts lacked jurisdiction over the case since it involved a title dispute.

“The lower courts appear to have concluded there was no title dispute because, after reviewing the evidence, those courts believed Woodsonia had sufficiently proved its allegation that under the eminent domain provisions of the lease, AMC’s leasehold interest was validly conveyed by Woodsonia to the CRA and thereby terminated,” the Supreme Court said in its ruling.

“But it is immaterial whether a court thinks the evidence is sufficient to resolve a title dispute in a forcible entry and detainer action, because it plainly lacks jurisdiction to do so.”