Narsi's loses bid to postpone eviction
Published: Tuesday, March 2, 2010 at 8:17 p.m.
Last Modified: Tuesday, March 2, 2010 at 8:17 p.m.
A judge has refused to allow embattled restaurateur Narsi Samii to remain in Coddingtown Mall while he appeals his restaurant's eviction, the latest blow in his two-year effort to block the mall's efforts to oust him.
The ruling means mall co-owner Simon Property Group can move forward with evicting Narsi's Hof Brau unless another court intervenes.
“My marching orders from the Simon folks are to proceed with the eviction,” Simon attorney William Goines said Tuesday.
But Samii's attorney, Peter Goldstone, vowed to fight on by asking the state Court of Appeal for an immediate emergency order overruling the decision by Judge Dean Beaupre.
“It ain't over,” Goldstone said. “This judge abused his discretion.”
Beaupre is the same judge who ruled against Samii after a trial last summer. He has yet to rule on a separate motion by Simon seeking $330,000 from Samii for its legal fees.
Simon Property Group, which purchased a 50 percent stake in the aging mall in 2005, has been trying to revitalize the center by attracting more national tenants. A Whole Foods Market plans to open there in late 2010.
Narsi's location has been cited as a prime spot for a new national restaurant, such as a Cheesecake Factory. In October 2007, the mall moved to cancel Narsi's lease, claiming it failed to meet its minimum revenue requirements.
Samii sued and has been able to prevent his ouster for more than two years. But it has been a bruising battle. His business has steadily declined, his legal bills have ballooned, and he has said he can no longer afford to move to a new location.
Simon made “painstaking” efforts to find Samii a new home in the mall, but nothing was good enough for him, Goines said in a hearing last week. Senior Simon executives flew in from Indianapolis repeatedly to try to resolve the matter, only to find that Samii had changed his mind, Goines said.
“Every time, we were shut down,” Goines said.
The legal maneuvering has delayed efforts by Simon to revitalize Coddingtown, Goines said.
“Unfortunately, it needs to have a vibrant new tenant in the Narsi's space,” Goines said
A new restaurant would help not only the corporate landlord, but also the other tenants, who would benefit from a higher-traffic restaurant in that location, he said. Narsi's revenues have “cascaded” from over $1 million to approximately $700,000 today, he said.
In his ruling, the judge seemed sympathetic to this argument.
“Part of Simon's rehabilitation plan is to replace under performing tenants with tenants that do,” the judge wrote. “Unless the managing partner, Simon, can turn the trend around, the mall may fail.”
Last week, Goldstone argued that if the judge allowed the eviction and then Samii won on appeal at a later date, the damage would be done and a mom-and-pop business would be destroyed.
“There's no way to redress that loss,” Goldstone argued.
Reached at his restaurant Tuesday evening, Samii took the latest news in stride.
He said he is more than $2 million in debt from his expansions of the business and his legal bills. The only way he can afford to relocate is if the mall buys out his lease, which Samii has long contended is only fair.
“It's gotten to a point where they will bankrupt me,” he said.
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