BTG Files Lawsuit Against West Palm Beach Country Club Over Terminated Lease Agreement
The Business Trial Group recently filed a lawsuit against the Eastpointe Country Club of West Palm Beach on behalf of First Service Tennis, a company leasing the country club’s tennis facilities. FST claims that it stands to lose significant business because the country club allegedly decided to prematurely terminate its lease agreement.
BTG attorney Roger Brown is representing FST, which anticipates that it could lose hundreds of thousands of dollars in annual profits over the next three years because of ECC’s alleged breach of the lease agreement.
Why Did ECC Terminate Its Lease with FST?
In November 2015, the ECC and FST agreed that FST would lease tennis facilities from the ECC for three years, with an option for the tennis company to extend the lease an additional three years, if it notified the ECC at least three months before the end of the initial lease.
In March 2018, FST decided it wanted to extend the lease, and notified the ECC that it would exercise the option for another three years — well in advance of the three-month deadline. Still, during the summer of 2018, the ECC notified FST that it would unilaterally terminate the lease effective June 1, 2019.
The ECC plans to sell the tennis facilities in use by FST to a developer, in part, so that it can finance several renovations of the club’s facilities without assessing members, according to an email from the club to its members. Assessments are additional costs levied on country club members to raise money for the club, and just mentioning the word potentially makes country club members shudder.
Up to 75 families could call the new housing development home, and between the membership dues those families will owe the club and the proceeds from selling the land, the ECC says it believes it can finance all its desired renovations without assessments.
With the ECC’s decision to terminate the lease and sell the land to a developer, FST alleges that the ECC violated the lease agreement, and caused financial damage with its interference in the tennis company’s business. Specifically, FST claims that since the ECC’s decision, it has incurred financial damages related to:
- Paying off debts and outside investors;
- Lost income from members who decided not to renew after the ECC’s announcement;
- Lost income over three years under the renewed lease;
- Refunds of prepaid members; and
- Attorneys’ fees incurred as a result of the ECC’s decision.
To remedy these damages, Mr. Brown has filed a lawsuit for breach of contract and tortious interference with a business relationship against ECC.
Has a Prematurely Terminated Contract Upended Your Business?
Businesses make plans based on the contracts they sign, and there could be devastating financial consequences if a contract is prematurely terminated. Contracts are not meant to be broken, and if another business or individual violated a contract with you or your company, the Business Trial Group may be able to help.
We handle a variety of business litigation cases on a contingency-fee basis, meaning our clients pay us nothing unless we win their case. Significantly, this allows individuals and businesses to pursue compensation, regardless of the size and wealth of their opponent. Contact us today to learn more about the benefits of contingency-fee litigation and how we may be able to help with your case.