A pickleball startup is suing a local competitor over alleged interference with a city development project, according to a lawsuit filed in Los Angeles County.
Santa Monica Pickleball and Padel, LLC claims that Pickletown, LLC and its owners attempted to disrupt a contract with Downtown Santa Monica, Inc. (DTSM) for a new racquet sports facility on 4th Street. The lawsuit seeks damages for increased operational costs, project delays, and reputational harm.
The lawsuit stems from the ongoing efforts to program the now vacant lot that used to house a City parking structure. That structure was deemed unsafe and torn down to make way for housing but officials have tried to find an interim use for the location as the housing project is not ready to break ground.
In November of last year, the group calling itself Pickle Padel Paw beat out New York City-based CityPickle to take over the space left vacant at 1318 4th Street when Haibu was forced to pull out of its deal to build a 360-degree immersive dome.
The concept was to feature a combination of pickleball courts, padel courts and a “luxury dog park” and had been crafted from the collaborative efforts of Jonathan Neeter, owner of the Pickleball Center at 2505 Wilshire Blvd, Encino residents Mary Pat Faley and Ilene Feldman (who operate Pickletown on Lincoln Blvd) and Stephanie McCaffrey who is part owner of the PicklePop facility on the Promenade.
The original proposal pitched to DTSM included two 68 ft by 35 ft padel courts, four 60 ft by 30 ft pickleball courts, beer garden seating, a food stand area, a “premium dog park” and a bathroom area. Dogdrop, a venture capital backed dog daycare center founded in Los Angeles, was set to be the operational advisor of the canine component.
The Santa Monica Citizen Access Website suggests that the permit application has changed to now incorporate “eight paddle sports courts” not six, with no mention of a dog park or any food and beverage outlets. There has been no progress on the site and despite an initial goal of opening in February. It is not yet known if the other partners are still involved, however, Shaina Denny, CEO of Dogdrop said that she had not heard anything about this lawsuit and indeed had not heard anything more about this project “for quite some time.”
The lawsuit alleges that each owner would put a minimum of $200,000 into the project and would receive an ownership interest proportionate to the amount paid.
McCaffrey claims in the lawsuit that Pickletown owners Mary Pat Faley and Ilene Feldman initially agreed to invest $200,000 each in the project but backed out after the contract was awarded in November. Despite withdrawing, the defendants allegedly continued to interfere by demanding ownership stakes and attempting to control pricing.
“The Pickletown defendants engaged in wrongful and egregious misconduct by misrepresenting their ability and intent to financially contribute to the project. They falsely assured Plaintiffs that they would invest capital once the project was awarded, only to back out entirely after the award, refusing to make any financial contributions,” claims the lawsuit.
The suit also claims the defendants demanded that McCaffrey not charge more than the rates set by Pickletown in an attempt to control market pricing.
The plaintiffs claim that Pickletown's owners have caused "significant disruption" by repeatedly contacting city officials after being told to communicate only with McCaffrey, who is the sole point of contact for the project.
The lawsuit is asking for restitution of damages suffered by the alleged interference and a court order clarifying ownership of the project.
“Plaintiffs seek a declaration from this Court confirming that none of the Pickletown Defendants, Mary Pat Faley, Ilene Feldman, or Pickletown, LLC, have any ownership interest, equity stake, or claim to any part of Santa Monica Pickleball and Padel, LLC or the 4th St. Project. Defendants’ attempts to claim ownership and demand money or equity, despite their complete lack of involvement or financial contribution, are without merit and must be dismissed,” says the lawsuit.
The Daily Press spoke to Faley and Feldman who simply said that they didn’t want to talk about this and wholeheartedly hoped it would all just go away. We also reached out to McCaffrey who denied any legal action was taking place, despite the already filed lawsuit. Neeter declined to comment and his legal representation, Nader Fannyan, simply said, “The parties are seeking resolution.”
The next step in this lawsuit is the Case Management Conference, set to be heard at Santa Monica Courthouse on May 2, 2025.
scott.snowden@smdp.com
