Cadillac Bar West end Real Estate and I.K Wales v. The McNutt Group, Inc.

State: Texas

Court: Texas Northern District Court

Docket No: 05-11-01540-CV

Case Date: 12/19/2011

Plaintiff: Cadillac Bar West end Real Estate and I.K Wales

Defendant: The McNutt Group, Inc.

Preview:AFFIRM; and Opinion Filed April 22, 2013.

In The Court of Appeals Fifth District of Texas at Dallas No. 05-11-01540-CV CADILLAC BAR WEST END REAL ESTATE AND L. K. WALES, Appellants V. LANDRY'S RESTAURANTS, INC. AND LANDRY'S CRAB SHACK, INC., Appellees On Appeal from the 160th Judicial District Court Dallas County, Texas Trial Court Cause No. 09-10891

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OPINION
Before Justices Moseley, O'Neill, and Lewis Opinion by Justice Lewis This appeal involves a dispute over a commercial lease, specifically involving the assignment of that lease from one tenant to another. The trial court granted summary judgment in favor of appellees Landry's Restaurants, Inc. ("Landry's Restaurants") and Landry's Crab Shack, Inc. ("Landry's Crab Shack"). Appellants Cadillac Bar West End Real Estate ("Cadillac Bar") and L. K. Wales bring two issues in this Court, arguing the assignment of the lease was never effective and complaining of what they contend was a lack of proper notice to Wales, as indemnitor, of a settlement between appellees and the landlord. We affirm the trial court's judgment.

Background The property at issue is located in the West End area of downtown Dallas and is owned by The McNutt Group ("McNutt"). McNutt first leased the property to Landry's Crab Shack in January 1998. The parties' original lease (the "Lease") required Landry's Crab Shack to pay rent and taxes for a term of twenty years. The Lease allowed Landry's Crab Shack to assign the Lease with the consent of the landlord. However, regardless of any assignment, the Lease called for Landry's Crab Shack to remain liable for all Lease obligations. As part of the original Lease transaction, Landry's Restaurants agreed to indemnify the landlord for certain obligations of Landry's Crab Shack. In August 2008, Landry's Crab Shack assigned the Lease to Cadillac Bar. W&M GP, LLC ("W&M") was the general partner of Cadillac Bar; Wales was the president of W&M. As part of the transaction, Wales signed a personal indemnity agreement: if Cadillac Bar breached any obligation under the Lease

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