Cabo Wabo Cantina
Sammy Hagar has won a court order barring an allegedly unauthorized Hollywood location of his Cabo Wabo Cantina from continuing to use the chain’s name and branding while their dispute plays out before a judge.
In a preliminary injunction issued Tuesday (Mar. 5), a Los Angeles federal judge sided with Hagar’s company, Red Head Inc., and ruled franchisee Robert Azinian was prohibited from using “Cabo Wabo” trademarks for any purpose, including a new location on Hollywood Boulevard that sparked the rocker’s lawsuit.
When it comes to that particular eatery, Judge George H. Wu wrote that the injunction specifically bars Azinian from “representing to the public, in any way, that the Restaurant is an authorized Cabo Wabo Cantina restaurant.”
Trending on Billboard
Tuesday’s order came amid an escalating legal dispute between Hagar and his former business partner over Cabo Wabo Cantina — a brand of Mexican-themed eateries started by the Van Halen rocker in Cabo San Lucas, Mexico in 1990 and later franchised into locations in Las Vegas and Hollywood.
Azinian’s company, which operated the Hollywood outpost for years, sued Hagar in September, claiming the singer had repeatedly breached their agreements and then unfairly tried to terminate the deal. The lawsuit claimed that the two sides had been at odds for more than a year over Azinian’s concerns that Hagar’s company was failing to support the Hollywood franchise. His lawsuit noted one such grievance was that the rock star himself was “not visiting and entertaining” at that location.
Hagar’s company (Red Head) hit back in January, filing a separate lawsuit in federal court that accused Azinian of infringing the Cabo Wabo trademarks. The case claimed that the partnership had clearly and lawfully been terminated because of Azinian’s own actions, but that Azinian had chosen to “surreptitiously” open a new location in Hollywood anyway.
Last month, Red Head asked for an immediate injunction — warning that Azinian was using Hagar’s branding but that the company had no oversight over the business, including the quality of food: “Every day that the Cabo Wabo Cantina at the new Hollywood location continues to operate under the ‘Cabo Wabo’ brand, it soils the name, reputation, and goodwill that Red Head has developed.”
In Tuesday’s order, Judge Wu was seemingly swayed by those arguments. He said Hagar’s company was likely to eventually win the lawsuit, and that it would face so-called “irreparable harm” if Azinian was able to continue using the Cabo Wabo Cantina branding while the case played out.
“Red Head has shown that it has suffered, and will continue to suffer, irreparable harm in the absence of a preliminary injunction — including harm to Red Head’s reputation and loss of goodwill, both of which are not fully remediated by damages,” Judge Wu wrote.
Neither side’s attorneys immediately returned requests for comment on Tuesday.
Sammy Hagar‘s company is demanding that a federal judge shut down an allegedly unauthorized Hollywood location of his Cabo Wabo Cantina, claiming that a former franchisee has gone rogue and is damaging the rock star’s reputation.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
Attorneys for Hagar’s company (Red Head Inc.) sued last month, claiming that franchisee Robert Azinian had opened a new Cabo Wabo on Hollywood Blvd across from the TCL Chinese Theatre even though his licensing deal had been terminated. Now, in a new filing Monday, they asked for an immediate injunction blocking Azinian from continuing to use the name or any other company branding on his new eatery.
“Every day that the Cabo Wabo Cantina at the new Hollywood location continues to operate under the ‘Cabo Wabo’ brand, it soils the name, reputation, and goodwill that Red Head has developed,” the company’s lawyers write. “Defendants were instructed to discontinue any and all use of the marks, but they have ignored that request.”
Hagar and his Van Halen bandmates opened Cabo Wabo Cantina in Cabo San Lucas, Mexico in 1990; after buying out his partners, he later launched a line of tequila under the same name. Hagar sold the liquor brand to Gruppo Campari for $101 million, but his Red Head Inc. continues to operate the restaurant in Cabo and later franchised locations in Las Vegas and Los Angeles.
Last month, Red Head sued Azinian in California federal court, claiming he had essentially gone rogue after years of successfully running the Los Angeles location. The lawsuit claimed that Azinian had closed his original spot on Hollywood Blvd and “surreptitiously” relocated across the street, all without seeking the required approvals. They warned the new Cabo Wabo was already causing confusion with customers, citing Instagram comments like one in which a user wondered “is Sammy Hagar still affiliated?”
In Monday’s filing, Red Head echoed those arguments in asking for a preliminary injunction, which will block Azinian from continuing to use any Cabo Wabo branding while the case plays out. Without such an order, Hagar’s company warned that the unauthorized eatery could cause severe damage to Cabo Wabo’s reputation.
“Defendants’ continue to use the Cabo Wabo marks in connection with their operation of the restaurant — but Red Head has no oversight, control, or even visibility as to the quality of any one aspect of Defendants’ business, such as the quality of décor, the quality of staff, the quality of materials, or the quality of food,” the lawyers write. “Red Head currently has no control over any of it.”
Neither side immediately returned requests for comment on Tuesday.
-
Pages