In September, demolition workers began knocking down a row of buildings to clear the area for a planned construction project. As many California construction company owners can attest, various issues can arise that cause delays on a project. In this case, demolition has come to a halt, preventing the construction of a new, 209-unit apartment complex due to a lawsuit filed by owners of a hair salon that was among the buildings scheduled for demolition.
Salon owners say they have a lease that expires in 2025
In the lawsuit the hair salon owners filed in another state, the plaintiffs stated that they have a signed lease for the property that expires in 2025. They have further stated that their contract includes an option to extend their lease for five more years. The salon owners have informed the court that they have no intention on surrendering their lease to new owners.
While leasing the property for their hair salon, the plaintiffs say they made approximately $500,000 worth of improvements on the building. The plaintiffs claim that the developers in question have acted in a hostile manner in an effort to force them off the property. They have accused the developers of turning off the gas to their salon and leaving construction debris behind their building.
The developers have weighed in on the topic
The lead developer of the project has denied any wrongdoing in this case. He also informed the court that his company has offered to buy out the hair salon owners’ lease so that they may relocate their business. The developer also stated that any relocation of the hair salon could be temporary because the owners are welcome to move back into their original location once the construction project is complete. It is now a matter for the court to decide. California business owners who are currently facing similar construction law issues may want to connect with an experienced construction litigation attorney before heading to court.