Landlord Prevails in Court Against Shenandoah American Grill

The owner of the Ashburn Restaurant Park on Waxpool Road prevailed in court against the Shenandoah American Grill. Judge Julia T. Cannon issued her judgment last month, in which she explained that the initial lease between Shenandoah and GAPSI Real Estate Partners LLC spelled out GAPSI’s rights.

In all, Cannon awarded $86,518 plus courts costs and attorney fees to GAPSI, including court fees and attorney costs. The decision means Shenandoah will not reopen at that location as its owners had hoped.

The dispute came down to whether a forbearance agreement had been reached to settle back rent due. Cannon said the agreement required the approval of GAPSI’s Terry Pao, “which Mr. Pao never gave” among other requirements laid out in one section of the original lease.

“That section set out eight requirements, not of which was proven to have been satisfied by Kitchen Scratch by July 8., the date they claim the agreement became effective,” Cannon wrote.

The decision justified GAPSI’s right to chain the restaurant’s doors in July and now enables the company to move forward with plans to re-lease the space to another prospect.

"The result speaks for itself,” Pao said. “We are happy to put this behind us and move forward."

Lance Smith, who was named as a defendant along with Shenandoah’s owning entity, Kitchen Scratch LLC, said there would be no appeal, which would require posting a bond equivalent to five months rent, or $90,895.

He said he and his employees have not yet been given an opportunity to collect personal items, including a mobile phone.

Shenandoah had fallen behind in rent earlier this year and had hoped to make small payments of good faith toward its debt until two large pools of anticipated money became available. On a Friday, Shenandoah sent provisions to which it agreed related to the forbearance agreement to an attorney for GAPSI, hoping that the terms would be accepted verbally. On Sunday, Pao chained the restaurant’s doors. A message, left by Shenandoah’s attorney on a mobile phone voicemail of a GAPSI attorney, was not received, at least not at the time, and the doors were chained.

Cannon said the lease gave the landlord that option.

Smith said that while the restaurant would not appeal the decision, he hoped to find a new location at some point in the near future in Loudoun or Fairfax counties.