Jury trial demanded in Charley’s suit

Published 5:54 am Thursday, October 8, 2015

A landlord and two other defendants being sued by Charleys Waterfront Cafe for alleged breach of contract want a judge to dismiss the suit.

The request was included in separate court responses filed by the defendants. The Fat Frogg, LLC, of Elon, N.C., and North Carolina businessman Jeffrey D. MacKenzie also demand a jury trial in a response filed Sept. 17 in the Prince Edward Circuit Court Clerk’s Office. The landlord, Farmville furniture merchant Richard F. “Dickie” Cralle Jr., said in a separate response filed Oct. 1 that the lease agreement he allegedly violated had actually expired. 

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The lease in question prevented Cralle from involvement with a competing restaurant in Farmville. Charleys’ lawsuit claims that Cralle leased space to The Fat Frogg and MacKenzie for a pizza restaurant in the same downtown Farmville building where Charleys has operated for the past 15-plus years.

The two other defendants concede in their response that Cralle had begun renovations to the building — not for the Fat Frogg, but to repair damages caused by Charleys.

The $18 million suit, filed on July 16, alleges that the plans for a competing restaurant violated the contract between Charleys and Cralle. The suit seeks a temporary and permanent injunction prohibiting the new restaurant from opening.

The suit alleges that Cralle “entered into an agreement with Defendants Fat Frogg and MacKenzie to lease these Defendants certain commercial space directly below the Plaintiff’s restaurant for the operation of a pizza restaurant. This agreement was in direct and material violation of the existing … Agreement” and “Defendants Fat Frogg and MacKenzie knew of the contractual agreement between Cralle and the Plaintiff at the time they entered into the agreement with Cralle.”

In Cralle’s answer to the suit, he “admits the Plaintiff has operated a restaurant … on commercial property owned by Defendant since 2000. The remaining allegations refer to a now expired written lease agreement, which lease agreement speaks for itself. Cralle denies any allegations inconsistent with the referenced lease agreement. …”

Cralle requested that the court “dismiss the Complaint in its entirety, with prejudice; award Cralle his costs and reasonable attorney’s fees; and grant such other relief as the Court deems appropriate.”

Cralle is represented by Richmond attorney Stephen M. Faraci Sr., who would not comment on the case.

The Fat Frogg and MacKenzie deny they entered into an agreement “to lease the commercial space below Plaintiff’s restaurant. Defendants further deny that they intended to operate a restaurant in direct competition with the Plaintiff,” their response states.

In a separate court filing, Cralle said he was “no longer bound by the lease’s prior — now expired — restriction on competition. It Fat Frogg were to open its doors tomorrow, Charleys would have no recourse.”

In late July, Southside Holdings, LLC, managed by Cralle, filed a civil claim for eviction against Charleys in General District Court, alleging that the “lease has expired, defendant refuses to vacate” and that $18,000 in rent for July-August and 6 percent interest from July 15 is owed, in addition to $56 in court costs and $4,500 in attorneys fees.

The Circuit Court suit additionally alleges that the restaurant’s contract gives Charleys exclusive use of 11,662 square feet of space for the operation of its restaurant and that it “specifically provided for a ‘Restriction as to Competition’ wherein the landlord agreed that it would not ‘lease, own, or operate a restaurant in competition to the Tenant in or upon any property now owned by the Landlord” in Farmville.

The suit says that “Cralle and his agents began construction of the Fat Frogg Restaurant space.  MacKenzie and other representatives of Fat Frogg assisted with this construction.”

The plaintiffs are arguing breach of contract, civil conspiracy to injure professional reputation in violation of state code sections and tortious interference with contract.

Attorneys representing the plaintiff and MacKenzie and The Fat Frogg couldn’t be reached for comment.

A Nov. 17 court date is set for the eviction suit in Prince Edward General District Court.