San Clemente-based Rusty Pelican Restaurants Inc., whose 30-year Newport Beach oceanfront restaurant lease expires in June, has filed suit against its landlord in a dispute over extending the lease.
The restaurant company is suing to get its landlord to abide by a prior settlement that called for a lease extension of up to 25 years, according to the suit. Rusty Pelican also is seeking damages for an alleged breach of its original lease in which it says it wasn’t allowed to sublease the restaurant to Landry’s Seafood Restaurants Inc.
The defendants in the suit are listed as David and Judith Winckler, Richard T. Winckler, Barbara Winckler, Lynda Nestlebush, Karen Janicki, James A. Parker and Pelican Associates.
In 1998, Rusty Pelican sold five restaurants to Landry’s, but the Newport Beach site wasn’t part of the deal because of the lease dispute.
Rusty Pelican also alleges in the suit that “the Winckler defendants commenced direct negotiations with Landry’s to lease the restaurant to Landry’s commencing July 1, 2001, immediately following the expiration of the original ground lease.”
The suit, which seeks more than $2 million in damages, follows one filed a year ago by the landlord seeking to oust the restaurant operators for failing to repair and maintain the restaurant and parking lot. The two parties later agreed to settle that dispute with a voluntary mediation.
In a separate legal action, Houston-based Landry’s is near settling a suit filed in June against Rusty Pelican over the costs to repair acquired restaurants and revenue shortfalls, according to a company spokesman. Landry’s, which operates 190 restaurants including Joe’s Crab Shack in Newport Beach and Rainforest Caf & #233;s in South Coast Plaza and Downtown Disney, also sued Rusty Pelican to prevent it from using the trademark at the Newport Beach location and another in Glendale.
Under the settlement, Rusty is expected to pay some damages and will continue to use the trademark, the Landry’s spokesman said. n
