The Block Firm is thrilled to announce a significant legal victory for our client, Main Street Burger, Inc., in their recent appellate case against the Estate of David W. Collier and associated parties. This decision marks a pivotal moment in a prolonged lease dispute involving the revitalization efforts of the Kennesaw Downtown Development Authority (KDDA) and its subtenant, Main Street Burger.
Background of the Case
In 2012, the KDDA initiated a project to rejuvenate downtown Kennesaw, Georgia, which included entering a lease agreement with the Colliers for their property at 2844 Main Street. Main Street Burger subsequently subleased this property, investing substantial resources to restore and expand it, ultimately opening a restaurant to contribute to the area’s revitalization.
Core Dispute
The legal contention arose when the Colliers refused to honor the renewal of the lease, prompting KDDA and Main Street Burger to seek a declaratory judgment. The key issues included whether Provision 32 of the lease allowed the Colliers to transfer the property to a successor without assuming the lease obligations and the correct interpretation of the lease’s ambiguous language.
Appellate Court’s Decision
The appellate court’s decision was a total victory on every issue in favor for our client:
- Lease Termination Rights: The court reversed the trial court’s ruling that allowed a successor to terminate the lease upon transfer. This decision safeguards Main Street Burger’s rights under the lease, ensuring their continued operation at the current location.
- Injunctive Relief: The court upheld the trial court’s injunction preventing the Colliers from transferring the property or altering the status quo during the case’s pendency. This injunction provides stability and security for Main Street Burger’s business operations.
Moving Forward
This victory enables Main Street Burger to continue serving the Kennesaw community without disruption. It also sets a precedent for similar cases, emphasizing the necessity for landlords to honor lease terms and the potential legal recourse for tenants facing unjust lease terminations.
We are proud to have represented Main Street Burger and look forward to their continued success as a cornerstone of downtown Kennesaw.
For more detailed information, you can refer to the full appellate opinion here.
