On Friday, April 1, Judge Scott Duncan issued his decision in the Case no. 2014-CA-000081: Seville Harbor vs. The City of Pensacola vs. Great Southern Restaurant Group
Here are the key points of the ruling:
1. Seville Harbor, the corporation owned by Ray Russenberger and that leases Pitts Slip from the City of Pensacola, Merrill Land, LLC, owned by the Merrill brothers and that leases the building on the Pitts Slip site, and Great Southern Restaurant Group, also owned by the Merrill brothers and that leases space in the Pitts Slip building from Merrill Land for its restaurants, do not owe the City of Pensacola millions of dollars for back rent as the city’s attorney and city administrator claimed in November 2013.
2. The sublease between Seville Harbor and Merrill Land is a lease, not a partial assignment – the City’s position was its was an assignment, which led to the highly- publicized default letter being sent to Russenberger and the Merrills in 2013. See LTR – N. Daniel to Seville Harbour-Merrill Land – 11-15-13.
3. The City is not entitled to any additional rent based on the income generated by The Fish House or Atlas Oyster House, which are owned by Great Southern Restaurant Group. The restaurants are not a subsidiary of Merrill Land – another argument the City made.
Judge Duncan wrote, “The undisputed evidence in the record confirms that the only relationship between Great Southern and Merrill Land is that of landlord and tenant pursuant to the Sub-Sublease.â€
4. Seville Harbor’s lease with the City of Pensacola was properly renewed and its renewal term is 30 years. The City of Pensacola failed to object to the request for renewal on a timely basis. Therefore, the lease was renewed for an additional 30 years, as per the original agreement.
5. Judge Duncan reserved the jurisdiction as to all issues relating to attorney’s fees and costs.
Here is the 14-CA-81 Seville Harbour v. City of Pensacola – Final Summary Judgment.
For more background, read “How not to do business,” published in Dec. 2013.