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Miami Beach Restaurant Locked in Dispute With Landlord

Landlord2

According to reporting from the Daily Business Review, a commercial landlord has filed a lawsuit against the Miami Beach-based Monty’s Sunset restaurant. The landlord, which recently took over the building in which the tenant is located, alleges that the restaurant is substantially behind on its rental payments and that it has breached a contract by failing to effectively maximize its sales. In turn, the Monty’s Sunset counters that the landlord is simply trying to push them out of the property.

Allegation: Restaurant Owes More Than $650,000 in Back Rent 

Miami Beach Marina Associates Ltd, the commercial landlord in this case, raises two separate claims against the restaurant. To start, it alleges that the tenant is substantially behind on its rental obligations. According to the lawsuit, Monty’s Sunset owes more than $650,000 in rent. The plaintiff is seeking payment of the alleged overdue rent and/or seeking to evict Monty’s Sunset from the property. Notably, Miami Beach Marina Associates Ltd recently assumed this property, and several others, from the city. 

Allegation: Restaurant Breached Its Contract 

One of the more interesting elements of this lawsuit is that the landlord is also bringing a breach of contract claim against the tenant for allegedly failing to reasonably maximize its sales. Under the terms of the commercial lease, the landlord is owed fixed rental payments and a percentage of gross sales. In other words, the greater the total amount of sales by the tenant, the higher the annual rental payment.

In bringing its breach of contract claim, the commercial landlord contends that the restaurant operators are failing to effectively take advantage of the business opportunities offered by the unique nature of the space. Indeed, the landlord argued that it is being shortchanged—raising objections about the restaurant’s decor, menu, and its prices. It claims the business should be able to generate significantly more revenue in the space and that its failure to do so is a breach of contract.

For its part, Monty’s Sunset counters that the landlord is merely attempting to bully the restaurant out of the property. The restaurant’s original lease was scheduled to end in 2021. However, shortly before the unit was sold to the new commercial landlord, the lease was extended for 33 years. Monty’s Sunset alleges that Miami Beach Marina Associates wanted to get rid of Monty’s Sunset when they purchased the larger property from the scene—but that they have failed to offer a reasonable settlement to buy out the remainder of the lease. 

Call Our Florida Commercial Landlord Attorneys Today

At Pike & Lustig, LLP, our West Palm Beach landlord-tenant litigation lawyers are strong and experienced advocates for commercial landlords. We can help the most complex of lease disputes. If you are having problems with a tenant, we can help protect your rights. To set up a confidential case evaluation, please call us now. We have offices in West Palm Beach, Miami, and Palm Beach Gardens and we represent landlords throughout the wider region.

Resource:

law.com/dailybusinessreview/2019/11/25/montys-miami-beach-restaurant-landlord-in-legal-battle-over-lease/

https://www.turnpikelaw.com/commercial-landlord-tenant-laws-in-florida-the-three-day-notice-and-right-to-cure/

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