Idaho Supreme Court ends Ketchum movie theater dispute
By KEVIN WISER
Express Staff Writer
The Idaho Supreme Court has ruled on a long-running dispute dating back to
1995 between the developer of a Ketchum building and the owners of the Magic Lantern
theater.
In May, the high court upheld a Fifth District Court ruling that forced
Tortoise Development Inc. to execute a real estate purchase and sale agreement for the
space occupied by the multi-screen theater with owners Rick and Cheryl Kessler of Ketchum.
Tortoise is owned by Gerald Kingen of Ketchum.
In the same decision, the court upheld the lower court’s decision to
require Kessler to contribute to unexpected cost overruns incurred when the building was
constructed. The court also upheld the lower court’s dismissal of Kessler’s
claims for damages.
Under Kingen, Tortoise developed a building located on Second Avenue west
of Main Street.
The dispute centered around an August 23, 1994 purchase and sale agreement
between Kessler and Kingen. The main question in the suit involved who should be
responsible for construction cost overruns for the building.
The saga began with a 1995 Fifth District Court case in which Kessler lost
possession of Magic Lantern. The theater was turned over to Tortoise and was operated as
Ski Time 4 Cinemas.
Kessler appealed the district court’s decision to the Idaho Supreme
Court, which vacated the summary judgment and sent the matter back to the district court
for further proceedings. Following a trial, Kessler won back possession of Magic Lantern.
Tortoise appealed.
In its appeal, Tortoise argued that the district court improperly granted
specific performance of the real estate purchase and sale agreement to Kessler.
