Scottish Rite Sues San Antonio Philharmonic Over $750,000 Payment Dispute

The Scottish Rite has filed a lawsuit against the San Antonio Philharmonic, claiming the organization has failed to make a crucial payment of $750,000 and has violated its co-ownership agreement regarding the renovation of the Scottish Rite Auditorium located at 308 E. Avenue E. The petition, submitted on November 27, 2023, to the Bexar County District Court, accuses the Philharmonic of using the building without compensating the Scottish Rite.

According to the legal documents, the agreement, signed on September 3, 2024, stipulated that the Philharmonic would pay the initial investment for the venue’s restoration by July 31, 2025. The petition asserts that this deadline has passed without the required payment being made. The Scottish Rite claims that the Philharmonic’s actions amount to seeking a “free ride” at the expense of the organization.

The petition outlines that the Philharmonic had committed to funding necessary restoration efforts, including updates required by the Americans with Disabilities Act, along with electrical, plumbing, and HVAC system improvements. When the agreement was formalized in 2024, estimated costs for these repairs ranged from $50 million to $100 million.

In addition to the missed payment, the Scottish Rite alleges that the Philharmonic did not fulfill other parts of the agreement, including setting aside concert proceeds for maintenance and insurance. The Scottish Rite also claims that the installation and subsequent removal of a temporary HVAC system, conducted by the Philharmonic without permission, caused damage to the building and resulted in significant monthly electrical charges.

On November 28, 2023, the Scottish Rite issued an eviction notice to the Philharmonic but offered to allow the organization to continue using the auditorium under specific conditions until the end of January 2024. The conditions included limited permissions for storage, paid practices, and specified performance dates. The Scottish Rite’s petition contends that the Philharmonic rejected this offer and continues to occupy the building without payment.

The Scottish Rite is petitioning the court to clarify whether the 2024 agreement remains in effect and seeks the authority to sell the auditorium independently. If the court determines the agreement is still valid, the Scottish Rite intends to pursue legal action against the Philharmonic for breach of contract and failure to provide compensation.

This legal battle comes amid a broader dispute involving the Philharmonic’s board. Peter Rubins and David Wood, both of whom have had roles in the organization’s governance, are embroiled in a separate case that has led to competing claims of legitimacy within the Philharmonic. The original lawsuit filed by Wood against the Philharmonic is set for trial on March 16, 2025, while a countersuit filed by the Philharmonic against Wood and Rubins is scheduled for November 2, 2025.

As the situation unfolds, the financial implications for both organizations could be significant, particularly regarding the future of the Scottish Rite Auditorium and the ongoing operations of the San Antonio Philharmonic.