San Diego’s lawsuit against SeaWorld over unpaid rent one step closer to trial
SAN DIEGO — The City of San Diego and SeaWorld failed to reach a settlement agreement in federal court this week in a lawsuit over allegations that the theme park owes more than $12 million in back rent and fees, moving the case one step closer towards a possible trial.
There will be additional opportunities for the two parties to reach an agreement about their long-running dispute, stemming from what the city says is delinquent rent and other penalties — the vast majority incurred when SeaWorld was closed during the pandemic.
On Wednesday, the two parties met for a required settlement conference, which is called an “early neutral evaluation,” in front of U.S. Magistrate Judge Daniel Butcher. The goal of the informal meeting was to reach some sort of agreement to potentially end the case early.
However, the judge confirmed that the negotiations proved unsuccessful, saying in a minute entry after the meeting, “The case did not settle. Scheduling Order to issue separately.”
The order outlined further dates that attorneys for San Diego and SeaWorld are set to meet in the coming months before a trial can take place, including deadlines for discovery and any pre-trial motions. Under the order, all tasks are expected to be completed by December.
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Before then, two parties will have another chance to negotiate a settlement during a set meeting at the end of July. According to judge in his order, this meeting would be to have “an informal discussion between the attorneys, parties, and magistrate judge of every aspect of the lawsuit in an effort to achieve an early resolution of the case.”
Should they fail to reach an agreement then — or at any other point after — the lawsuit would move to trial in mid-2025.
FOX 5 reached out to both the San Diego City Attorney’s office, but they declined to comment on the pending litigation. FOX 5 also reached out to SeaWorld and is still awaiting a response.
Prior to the filing of the lawsuit, the City of San Diego sent a notice of default to SeaWorld Entertainment’s CEO over the park’s claimed $12.23 million debt, warning that the park could face litigation if it was not paid by Sept. 6, 2023.
The day after the deadline, the city made good on its threat, announcing the litigation months after the San Diego City Council voted to initiate legal action against the corporation.
SeaWorld responded by filing a countersuit in October, arguing that the theme park owes nothing to the city due to claims that its forced closure of the park amid pandemic-era closures was a violation of its lease agreement. It further contends that it is entitled to “substantial damages” due to loss of revenue during this time.
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