Former restaurant owner sues new owner for breach of contract

Former restaurant owner sues new owner for breach of contract

On Behalf of | Mar 8, 2013 | Uncategorized |

Parties enter into contracts because it is a legally binding agreement between two or more parties. A contract creates certain obligations between the parties to the agreement. In Baton Rouge, Louisiana parties and businesses enter into many different types of contracts.

A former Jefferson Parish restaurant company, Bozo LLC, has recently filed a lawsuit for breach of contract against the restaurant’s new owners, Bozo Inc. and Bozo Vodanovich. According to Bozo LLC, the former restaurant company entered into an agreement with Bozo Inc. and Bozo Vodanovich where Bozo LLC would sell its restaurant business to the new owners. A provision of the agreement was that the new owners had to change the restaurant’s name to something that was unlike the restaurant’s previous name. Under the contract, the new owners would also lease the restaurant building as well as be responsible for the building’s real estate taxes.

Bozo LLC claims that not only did Bozo Inc. and Bozo Vodanovich not pay the real estate taxes, it also intentionally disregarded the provision requiring the restaurant’s name to be unlike its previous name. The new owners changed the restaurant’s name from Bozo’s to Bozo Vodanovich. As a result of the alleged breach, the former restaurant owner is seeking $250,000 in damages.

If a party to an agreement fails to fulfill his or her obligations under the contract, that party has breached the contract. Any violation of contraction terms may be grounds for a breach of contract suit. The non-breaching party may sue the breaching party and either seek to have the contract enforced or recover for financial harm.

Here, if the court finds that Bozo Inc. and Bozo Vodanovich violated its contract with Bozo LLC by using a similar name and failing to pay real estate taxes, Bozo Inc. may be entitled to the recovery of damages.

Source: The Louisiana Record, “Bozo’s restaurant sued by former owner for breach of contract,” Kyle Barnett, Feb. 19, 2013