Artist sues Hoover Dam businesses alleging unpaid royalties

By Steve Green

Friday, March 26, 2010 | 9:46 a.m.

Southern Nevada artist and sculptor Steve Liguori is suing two businesses at Hoover Dam, charging they've failed to pay all the royalties owed from the sale of souvenirs based on his work.

A federal lawsuit filed last week in Las Vegas names as defendants the Hoover Dam Snacketeria/High Scaler Cafe and the Hoover Dam Store and their owners.

The defendants have not yet filed court papers answering the lawsuit, but the owner of the cafe on Friday disputed the allegations.

Liguori, known in Las Vegas and Boulder City for sculpting large-scale works of Hoover Dam builders such as the "High Scaler" and "Alabam," says in the lawsuit he was commissioned by the defendants to build the High Scaler sculpture depicting a dam construction worker on the job.

The artist says that part of his compensation for the work was to receive a 17 percent royalty on souvenirs based on the sculpture, which was installed near the store and cafe.

"Defendants have exploited Liguori’s work to their great commercial advantage. Defendants have manufactured and sold, and continue to sell, a significant volume of souvenirs that utilize Liguori’s ... works," charges the suit, which alleges the defendants have failed to pay all royalties due for sale of souvenirs such as key chains and miniature statues; or provide audited royalty statements.

Attorneys for Liguori with the law firm Holland & Hart LLP say in the lawsuit that when he was contacted about building the monument in 1998, he told the restaurant and gift shop owners that it would cost about $500,000. However, they offered to pay Liguori $166,000 plus royalties, the lawsuit says.

The defendants also are accused of using the High Scaler image without authorization for items not covered by the royalty contract such as in coloring books and on plastic bags.

The suit alleges breach of contract, copyright infringement and other claims and seeks an injunction barring the defendants from selling items covered by Liguori's copyrights and an accounting of all such goods sold and royalties due.

The U.S. Bureau of Reclamation, which operates the dam, says the high scaler statue was created in the likeness of Joe Kine, one of the last surviving high scalers who worked on the dam. A clear picture of Joe Kine existed showing him in his working environment and was used as a guide to create the figure, the agency says.

A request for comment on the lawsuit allegations was placed Friday with the owner of the Hoover Dam Store.

Bert Hansen, owner of the High Scaler Cafe, on Friday disputed the allegations in the lawsuit.

"We paid the guy up front and what he produced as artwork have not been tremendous sellers," Hansen said.

He said Liguori formerly operated a retail store at the business.

"We had done business with him on a handshake business for almost 20 years. He expects to come in and go through our books. He left owing us money. Now he's suing us -- go figure," Hansen said.