The Waverly, the planned second restaurant from Michael O'Halloran (Bistro 7), has ended up in court. The deal, which seemed shaky two weeks ago when Food & Drinq reported on a "for-lease" sign in the window, is dead.
O'Halloran, whose corporation Leo Restaurant Group LLC is suing Pearl Properties in Common Pleas Court, alleges in a breach-of-contract suit that Pearl and its contractors missed construction deadlines and did substandard work. Among the allegations were an uneven floor and an exhaust flue that stopped about 12 feet from an outside wall. The suit also says that Pearl demanded rent in mid-March, even though the lease states that rent would not begin for 120 days after Pearl delivered the completed space. Leo/O'Halloran claims that the space was not completed.
Leo seeks $250,000 in damages.
Reed Slogoff of Pearl said he would respond in court, not in the press.
Terms of the lease, according to the lawsuit: five years (renewable for two five-year terms) at $6,400 a month (3 percent annual increases), plus $525 a month for the liquor license. Leo was to receive $75,000 for its build-out.
Meanwhile, O'Halloran is looking for a new spot.