Andrew Marshall Obtains $966,987 Award Following Three-Day Arbitration
September 17, 2020
Bassford Remele represented Seven Acquisition LLC, which owns and operates the Seven Steakhouse in downtown Minneapolis. After experiencing leaks emanating from the roof of the building for more than a year, Seven abated rent and demanded arbitration with the landlord, 700 Hennepin Holdings. The landlord responded to the demand for arbitration by starting an eviction action. Seven successfully brought a motion in District Court to stay the eviction action and compel the parties to arbitrate based on the terms of the parties’ lease.
During the weeklong arbitration, Seven established that the landlord materially breached a central covenant of the lease by failing to repair incessant leaks into Seven’s business and that those leaks materially interfered with Seven’s operations, resulting in lost profits in the amount of $741,987. The arbitrator also found that the landlord breached the lease when it failed to disclose the identity of its insurer, forcing the tenant to make claims under its own policy for damages caused by the landlord — resulting in increased insurance premiums in the amount of $225,000. Accordingly, the arbitrator held that Seven’s total damages amounted to $966,987. Seven Acquisition LLC v. 700 Hennepin Holdings LLC
On September 17, 2020, the District Court confirmed the Arbitration Award.
For more information, please contact Andrew Marshall.
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