Barber sues Duquesne over trimmed profits

A local barber says Duquesne took a razor to his business.

Kevin Kappel, owner of Joe Madia's Barber Shop on Magee Street, less than one block from campus, is suing Duquesne in civil court for fraud and breach of contract over what he claims is a bait-and-switch operation by the University, which has cost him more than $200,000 in lost revenue. Kappel would not disclose how much he is suing for.

Kappel's lost revenue stems directly from the barber shop's location, he said. Until 2004, the shop was located on Forbes Avenue in what is now the Forbes surface lot adjacent to the Power Center. Duquesne purchased the land where Joe Madia's used to stand for $625,000, even though it was assessed by the county at $125,000.

During the sale, Duquesne signed an agreement stating that the University would give Kappel, 39, of Brighton Heights, up to 2,000 square feet of space for his shop if the area was marketed for commercial retail.

Kappel claims in the March 11, 2011, lawsuit that Duquesne developed the lot into a commercial retail space by using it as a parking lot that makes money from student parking passes and paid parking spots for events at the Consol Energy Center. Therefore, he claims, Duquesne violated its contract.

University counsel Jonathan McAnney disagreed.  He said Kappel's assertion that the use of the parking lot for school revenue was in violation of the contract is "ridiculous."

"Does he [Kappel] want to set up a barber shop in one of the parking spots?" McAnney said. "The meat of his argument is that he should be allowed to run his barbershop in a parking lot."

But Kappel said his argument is based on the fact that Duquesne should have provided him space for his shop once they developed the space, regardless of what it was developed for.

"What they [Duquesne] don't tell you is that the contract states when they develop it," Kappel said. "They chose to develop it into a parking lot, and I'm frozen out."

According to a Sept. 8, 2004, letter from Vice President of Management and Business Stephen Schillo to Ronald Madia, whom Kappel purchased the shop from, "Duquesne University is prepared to commit to Mr. Kevin Kappel that he will have a one-time right of first refusal to rent up to 2,000 square feet of retail space, at market rates, for the shop when retail space is developed … In this way, the University would like to assure you and Mr. Kappel that he will have the opportunity to continue the barbershop in your father's name when retail space is developed in the block."

While Joe Madia's is still a hotspot for Duquesne students, the shop's space was severely downsized in the move.

"I'm cutting half of Duquesne students' hair," Kappel said. "But I'm down from 2,000 square feet to 425. That shop would still be there [on Forbes] if we had known this was going to happen."

The shop was reduced from seven or eight full-time barbers to just one — Kappel, who operates the shop with two other people, who cut hair part-time.  

Kappel said his business would be doing much better if it were located in the Power Center.

"I'd have thousands of students above my head and visual exposure," he said. "My business would be banging."

Kappel's lawsuit also states that, by opening the Power Center up to Barnes & Noble and Jamba Juice, Duquesne also opened the Power Center to retail space and thus should allow Kappel room to reopen his shop on Forbes Avenue.

McAnney said Barnes & Noble and Jamba Juice had preexisting contracts with the University, and the Power Center had not yet been marketed for retail.

"These are standing agreements that this University has and they previously existed before the construction of the Power Center," he said.

Barnes & Noble was previously located on the second floor of the Student Union in the lounge across from Starbucks, but whether Jamba Juice existed on campus prior to the opening of the Power Center is a point of contention in the lawsuit.