Family Feud Wages for CBGB

Staff Writer, Dec 21, 2008

Those who attended the opening of the Rock and Roll Hall of fame probably didn’t realize that some of the items were valuables taken from CBGB and gave the opening its taste of local goodness. The famed CBGB club was opened back in 1973 by Hilly Kristal. Kristal successfully managed CBGB until 2006, when it closed. Kristal passed away last year, leaving behind his 83-year old ex-wife Karen Kristal and daughter Lisa Kristal Burgman, who are in a bitter battle over CBGB and who should get what.

Karen Kristal is pretty upset. According to Karen, she’s the reason there was a CBGB. Her motion filed with the courts in November by Orrick lawyers says that when she divorced Hilly after 18 years of marriage, she continued to support him in helping to create a nightclub whose fame stretched around the world. Karen alleges that not only did she come up with the name CBGB but she designed the logo, helped balance the books, kept performers on their toes, worked behind the bar and even broke up fights.

Karen’s claims don’t stop there though and they sound pretty convincing. The 83-year old has indicted in her motion that she was the sole shareholder of CBGB and that her Sareb Rest Corp., is a derivative Sarah Rebecca, issued ten shares and that she was made both president and director. Further, CBGB’s liquor license and lease were also in Karen’s name.

The source of the family feud to date is a 2005 transfer agreement that took CBGB basically by lock, stock and barrel and placed it in daughter Lisa’s hands. The reason for the transfer, according to Lisa, is because Karen was no longer mentally stable. Stable or not, Karen’s lawyers have put together a motion seeking to regain CBGB ownership and trademarks. What’s more, Karen wants payback on her investment.

It should come as no surprise that the CBGB estate is worth a fortune. CBGB Fashions began grossing about $2 million a year and a deal was made this year to sell CBGB trademarks and CBGB holdings to Kismet Media Group for a nice chunk of change: $3.5 million. Looks like the courts will have to settle this family feud in the future because neither side is giving in.