For more than 40 years, Pappy and Harriet’s has enchanted the world. The tiny Western-themed bar, restaurant and live music venue has turned Pioneertown into a hotspot for tourists, foodies and intimate shows by rock stars.
But for more than three years, Knitting Factory Entertainment CEO Morgan Margolis, along with partners Stephen Hendel and John Chapman, have been battling the venue’s co-partners, Joseph “JB” Moresco and Lisa Elin, over control of Pappy and Harriet’s. Moresco and Elin had been managing the venue, but on Dec. 18, Los Angeles Superior Court Judge Steve Cochran awarded control to Margolis and his partners.
“After a multi-week jury trial, the jury unanimously found in favor of the Margolis group, awarding plaintiffs substantial damages for various breaches of contract and the taking of intellectual property,” said a Dec. 21 press release from Margolis and his partners. “The Los Angeles Superior Court followed suit by ruling in favor of the Margolis Group on all remaining claims, finding that the defendants engaged in ‘breaches of fiduciary duty,’ ‘wrongful conduct’ and ‘breached the Partnership Agreement in multiple ways.’”
The Independent spoke with Margolis over the phone.
“I’m thrilled to be finally vindicated in what has been a 3 1/2-year arduous battle over something that shouldn’t have been,” Margolis said. “It’s been very difficult for all of us.”
Moresco and Elin declined to comment, and instead sent a statement from their attorneys. It reads, in part: “JB Moresco and Lisa Elin have been battling a commodities trader out of New York, Stephen Hendel, for the past 3.5 years over control of Pappy and Harriet’s. Mr. Hendel has gone from commodities to buying up billion-dollar music catalogs and appears intent on taking Pappy and Harriet’s for himself. JB and Lisa contend that Mr. Hendel invested $2.45 million of the $3 million he promised into a partnership with JB and Lisa. When Mr. Hendel’s Knitting Factory Entertainment sought to move its Desert Daze Music festival to Pappy and Harriet’s, JB and Lisa said no for various reasons. … Within days, Mr. Hendel filed suit via his wholly owned limited liability company, S&H Desert Depot, LLC.”
Shortly after both sides entered into the partnership to purchase Pappy and Harriet’s from Robyn Celia and Linda Krantz in April 2021, friction began.
“I got into business with them because I thought it would be a good thing,” Margolis said. “We paid for everything because we thought it would be a good thing. They were just supposed to operate the bar/restaurant; we were supposed to do the music, and it just turned into something I’ve never seen before in humanity, with my years in the business of dealing with bands and musicians and artists and relationships.”
One of the first controversies came when, according to reports, Moresco told people at the neighboring Desert Willow Ranch that guests could not park in the Pappy’s lot.
“Right out the gate, I started getting email complaints, calls and texts from neighbors and people who were coming up there,” Margolis said. “People were just hitting us on the website and writing in about problems they had with JB and Lisa right out the gate. I was like, ‘Wow, we’re two weeks in, and they’re already getting all these complaints.’ I would call them and say, ‘Hey, what’s going on here?’”
Moresco’s declaration cited liability issues as the motive for his interaction with Desert Willow Ranch.
A witness to the scene, Courtney Bailey, told Los Angeles Times in 2022. “Somebody came and started screaming, dropping F-bombs and telling us that they’re gonna tow all of our cars and that we needed to get them out of there.” The Times also reported that David Corso, the owner of various buildings along Pioneertown’s Mane Street, sent an email to Moresco, and was banned soon after.
“While we have the greatest respect for the court and the jury, we strongly believe both got it wrong.”
part of a statement from the attorney for Joseph “JB” Moresco and Lisa Elin
Margolis said he confronted Moresco and Elin regarding their dealings with Pappy’s neighbors, asking: “‘Why are you banning David Corso? He’s not allowed to come in anymore because you have an issue with him personally? And you were banning this person and that person, and you’re fighting with your neighbors next door. Can you explain to me?’ And their answers were always like, ‘Screw those people.’ They were like, ‘Fuck them, those bullshit space cowboys, blah, blah, blah, blah.’ I was like, ‘What are you doing? Can you be friendly and work this out?’ We don’t ban people from our venues and our bars and restaurants. I don’t think we’ve ever banned anybody unless it’s been some massive violent attack. … We were having friction on how they were dealing with people, and then it escalated from there. I won’t go deeper than that.”
Then came Desert Daze. The festival, run by Phil Pirrone, announced via social media in 2021 that the festival would make its post-COVID 19 comeback as “a series of … concerts at the majestic Pappy and Harriet’s in Pioneertown” from Oct. 17 through Nov. 23. Court documents said that Moresco was “concerned about the effect of the Desert Daze shows” on the venue’s conditional-use permit, and fired Pirrone and the talent booker Bravo Entertainment LLC before the lineup was announced.
An emergency meeting of the owners’ group was called, and on June 18, 2021, Margolis, Hendel and Chapman voted to remove Moresco and Elin as venue managers and general partners. Instead, Moresco and Elin seized control, changing the locks and passwords.
Margolis and co. filed a restraining order against Moresco and Elin, but it was denied, allowing the couple to continue operations leading up to the trial.
The statement from Moresco and Elin’s attorneys argues that during the trial, “Mr. Hendel’s counsel also was able to keep out almost all evidence of the plaintiffs, and previous owners, efforts to undermine the business following the filing of the lawsuit.”
During the course of Moresco and Elin’s ownership, various locals were banned from entering the venue, while others were blocked from Pappy’s social media pages, and various locals-focused events ended. The Pioneertown Palace’s website bio was also changed to include no mention of former owners Robyn Celia and Linda Krantz.
“I think the prime thing is bringing back some of the locals’ nights that have been there. A lot of locals have been banned for no apparent reason. I want to understand why that happened.”
Morgan Margolis
Robyn and Linda … made Pappy’s what it is,” Margolis said. “… First and foremost, I want to get their history back. They were knocked out on Wikipedia; they don’t exist anymore. Look up Pappy and Harriet’s; Robyn and Linda don’t exist. They’re knocked out on the web. They were completely cut from the history of this venue, and these two women made this place. We were lucky enough to inherit the history here, and that’s what it was always supposed to be.”
Now that he and his partners have control, Margolis pledged to again make Pappy and Harriet’s a more welcoming place for locals.
“I just need to figure out what’s missing, like local nights, discount tickets for locals and free nights of shows,” Margolis said. “Those are all the things that I want to institute back, but I’m just asking everybody to give me a minute. I’m very methodical, and very immersed in trying to make things right and make everybody happy. I have to figure out what needs to be changed, and what needs to stay. … I think the prime thing is bringing back some of the locals’ nights that have been there. A lot of locals have been banned for no apparent reason. I want to understand why that happened. I haven’t been on the ground in 3 1/2 years. I haven’t been able to see my own bands that have been on our label that are playing.”
Margolis pledged to turn to locals for direction, stating: “I got to get the local flavor back. I want to take a beat, and then do a community forum, and sit down and go, ‘Hey, hit me with what you think is missing and how we can help it.’ I’ll do the best I can to get a lot of this in play. Can I get it all? No, but I will do what I can to bring back some of these things.
“I’m not going to be perfect,” he said. “I kind of joked and said, ‘I hope we live up to this expectation.’ We’ll do the best we can. It’s going to be in the hands of locals. Will we be buying the talent? Yes. Will the new GM be local? Yes. Will they be answering up to my team? Of course, but not in a negative way.”
The statement from Moresco and Elin’s attorneys said: “JB and Lisa have spent nearly four years working to improve and grow Pappy and Harriet’s into one of the most respected and successful restaurants and music venues in the high desert, and globally during a time when there has been significant closures of outlets in the hospitality space. … While we have the greatest respect for the court and the jury, we strongly believe both got it wrong. While this began as a mismanagement case, it ended with Mr. Hendel’s attorneys successfully keeping out any evidenceof JB and Lisa’s extremely successful management of Pappy and Harriet’s during their tenure.”
The statement also said Moresco and Elin are appealing the decision—meaning the battle over the legendary Pappy and Harriet’s will continue.
Yea well I miss the old days when Pappy was alive and Harriet would wake me up in the 🐎 shoe Pitt OD, OD coffees on you want anything for breakfast?
Just close it. What is was, compared to what it is now will never return. I stopped going 10 years ago after a lifetime of seeing some amazing bands. When you start to disrupt the locals way of life, and you start to think you are more important than everyone else, the problem needs to be removed. Bulldoze the place and keep the memories. My family and I will miss it, but will survive with ‘gone but not forgotten.’
We have been going for lunch once a week or so for 35 years. The price goes up, as the quantity and service go down. We arrive early to beat the crowds. With the place almost empty, we are not even allowed to sit where we want.
JB and Lisa were a poison pill for Pappys. We are local and experienced their venomous behavior. The whole town can now breath a sigh of relief. Morgan is friends with Robyn and Linda and they will bring the place back for the locals and visitors. Last – with regards to appealing – those two are going to be bankrupt after this, they won’t even be able to afford their legal fees. They should go back under their rock -or maybe go somewhere where people won’t find them on google. Their reputation is shot.