Santa Barbara Calls Harbor Restaurant Rent Lawsuit ‘Meritless’ in Court Response

The City of Santa Barbara has responded to a lawsuit filed by the owners of Harbor Restaurant, alleging unfair rent terms, by filing a demurrer in Superior Court requesting the case be dismissed. The city argues the complaint is “meritless” and an attempt to gain leverage in lease renegotiations. The Harbor Restaurant owners, who purchased the business in 2021, claim the current lease terms are “unconscionable” due to changed economic conditions and that rent exceeds 20% of gross receipts.

The city contends the lease terms are clear and that many of the issues cited by the restaurant owners, such as the COVID-19 pandemic and new competition, were already present when the owners took over the business. Furthermore, the city highlights that the restaurant has not paid rent for several months and owes property taxes, leading to a seizure of funds by the county.

The case involves a significant investment of over $1 million in remodeling by the restaurant owners, which the city did not contribute to. A case management conference is scheduled for April 17, and a hearing on the demurrer is set for May 15, with the case reassigned to Judge Donna Geck after a request for disqualification from the original judge.

(Source：Noozhawk)