terms
of
the Agreement, R City agreed to pay a "Monthly Working Capital Payment," i.e., rent,
of
2 $4,000 per month, to Weeneez for the Premises. The term
of
the Agreement was3 contemporaneous with the master lease agreement that Weeneez had entered into with the landlord,4 Security Building Loft Partners LP ("Security Building Loft Partners"). That master lease was not5 due to terminate until January 2012 and could be extended a further five years to January 2017.6
9.
Certain aspects
of
the Agreement were abundantly clear: First, the Agreement did7 not form any sort
of
partnership or other joint venture between Weeneez and R City. Section 13.138 expressly states: "The parties to this Agreement are independent contractors. There
is no
9 relationship
of
agency, partnership, joint venture, employment,
or
franchise between the parties.
10
Neither party has the authority to bind the other or to incur any obligation on behalf
of
the other."
11
Second, the Agreement specified that R City's personal property was unambiguously its property
12
and would remain so upon termination
of
the Agreement. Section 11.9
of
the Agreement states:
13
"Upon termination or expiration
of
this Agreement, [R City] may retain title to any furniture,
14
fixtures, and equipment that were acquired by
[R
City] during the term
of
this Agreement."
15
10.
In reliance on the Agreement and the lease term, R City began construction on
16
improvements
to
the premises in order to open its wine bar. It invested over $250,000
in
those
17
improvements, and RCily opened The Must
in
December 2008. It become a popular place in the
18
area.
19
11.
At
or
near the opening
of
The Must, R City orally notified Security Building Loft20 Partners that it was Weeneez' subtenant. R City secured the written consent
of
Security Building
21
Loft Partners via an exchange
of
emails dated June 26, 2009, by which Security Building Loft
22
Partners gained the benefit
of
being named as an additional insured on R City'S insurance policies.
23
Security Building Loft Partners also ratified R City's subtenancy in a variety
of
ways subsequent
to
24 that date. Security Building Loft Partners received a copy
of
the Agreement on or about November
25
10,2009.2612.Over the course
of
the R City's sublease, a variety
of
significant disputes emerged.27 RCity discovered, for example, that the rent that Weeneez was charging RCity was significantly28 more, on a percentage basis, than the amount
of
space that
Reity
was occupying. Weeneez also
-3 -
COMPLAINT FOR CONVERSION. ETC.