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Friday, March 12, 2010

Ind. Decisions - "Valpo Cafe vows to press its case against VU"

The Court of Appeals' Feb. 1, 2010 decision in Borovilos Restaurant Corporation, II v. Lutheran University Association, Inc. (ILB summary here - 3rd case) is the subject of a story today by James D. Wolf Jr. in the Gary Post Tribune. Some quotes:

The attorney for Broadway Café wants to take the restaurant's suit against Valparaiso University to the Indiana Supreme Court because he said a previous appellate decision will affect commercial leasing throughout the state.

In February, The Indiana Court of Appeals ruled that the university was not denying lease rights to restaurant owner George Borovilos, upholding a decision by Porter County Superior Court Judge Roger Bradford.

But it went beyond Bradford's July 2009 ruling, Attorney Stephen Bower said.

In 1999, Borovilos signed an agreement with neighboring Kelsey's Steakhouse for shared parking lot spaces and expenses.

Borovilos filed the suit against Valparaiso University in 2007, claiming his business was hurt when the university fenced off the area where the Kelsey's building had been and land east of there.

Bradford ruled that the university as new owners didn't have to provide all of the old Kelsey's parking, Bower said.

However, the appellate court ruled that Broadway Café has no rights whatever to the land where Kelsey's once stood, although the owners before the university signed a sublease agreement that allowed it, he said.

That makes the Silhavy Road entrance to the restaurant and about 40 percent of the U.S. 30 entrance off limits to Broadway because it's on land that used to house Kelsey's.

Bower said that if, as the Court of Appeals ruled, the only way to have joint parking and guaranteed access rights is by direct deed with property owners instead of sublease, major mall stores are in trouble.

Mall owners usually lease to management groups, which sublease to tenants.

Posted by Marcia Oddi on March 12, 2010 10:11 AM
Posted to Ind. App.Ct. Decisions