Gourmet Gang, Sunset Beach Resorts, LLC v. Sun Sunset Beach RV, LLC

Court of Appeals of Virginia·Decided May 26, 2026·No. 1881241·Unpublished

Opinion

COURT OF APPEALS OF VIRGINIA Record No. 1881-24-1

GOURMET GANG, SUNSET BEACH RESORTS, LLC, ET AL.

v.

SUN SUNSET BEACH RV, LLC, ET AL.

Present: Judges AtLee, Chaney and Bernhard Argued at Norfolk, Virginia Opinion Issued May 26, 2026*

FROM THE CIRCUIT COURT OF NORTHAMPTON COUNTY Lynwood W. Lewis, Jr., Judge

Richard S. Phillips (The Phillips Law Firm, on brief), for appellant. Douglas E. Kahle (Zachary A. Handlin; Kinser, Leftwich & Kahle, P.C., on brief), for appellee.

MEMORANDUM OPINION BY

JUDGE RICHARD Y. ATLEE, JR.

Gourmet Gang, Sunset Beach Resorts, LLC and The Gourmet Gang, Inc. (collectively, “Gourmet Gang”) appeal the circuit court’s orders sustaining pleas in bar to their complaint. Gourmet Gang contends that the circuit court wrongly concluded that Gourmet Gang could not enforce its lease against Sun Sunset Beach RV, LLC (“Sun Sunset Beach”), arguing that Sun Sunset Beach was an intended party and that it was simply a misnomer in the lease that named a different entity. Gourmet Gang also argues that Code § 11-2, the Statute of Frauds, does not bar enforcement of the lease and that the defendants were estopped from asserting this defense due to Gourmet Gang’s detrimental reliance. Although the circuit court correctly decided the breach of contract claim, the current record is insufficient to support its ruling on the remaining claims.

*

This opinion is not designated for publication. See Code § 17.1-413(A).

We therefore affirm in part, reverse in part, and remand the case to the circuit court for further proceedings consistent with this opinion.1 BACKGROUND

Gourmet Gang is a limited liability company providing food and beverage services in Virginia. In March 2018, Mia Guinan, the owner and sole member of Gourmet Gang, negotiated with representatives of an entity that she believed owned the Sunset Beach Resort property in Cape Charles, Virginia for her company to operate a food and beverage service on the premises of the resort. According to Guinan, the representatives contacted her to propose the business arrangement. They then drafted and supplied her with a written lease, which she reviewed with counsel.

The lease named Gourmet Gang as the lessee and an entity called “Sunset Beach Resort, LLC” (Sunset Beach Resort) as the lessor.2 Under the lease, Gourmet Gang would rent a restaurant, two deck facilities, and a beach facility on the resort premises to operate its business. The lease provided for an initial rental term of one year but permitted Gourmet Gang to renew the lease on a year-to-year basis for three more years, contingent on satisfactory performance and timely notice to the landlord. The lease further provided that, after the first four years, Gourmet Gang could renew the lease for two additional five-year terms subject to the same conditions if it was not in default of the lease. The lease required Gourmet Gang to pay monthly rent and adhere to specified hours of operation.

1 Appellees filed two motions with this Court. The first asked the Court to dismiss Gourmet Gang’s first assignment of error. The second motion asked the Court to issue a rule to show cause. Both those motions are denied. Gourmet Gang’s motion to amend the first assignment of error is likewise denied.

2 Gourmet Gang discovered upon later investigation that Sunset Beach Resort, a limited liability company formerly registered to do business in Virginia, was defunct when the lease agreement was signed.

Guinan traveled to a corporate office in Ocean City, Maryland to sign the lease. At the meeting, Dean Geracimos informed Guinan that Sunset Beach Resort was the owner of the resort property and that he was authorized to execute the lease for the owner. In fact, Geracimos is an employee of Bluewater Development Corporation (“Bluewater”), a hospitality company that provides onsite management services and personnel to the resort. The parties executed the lease, with Guinan signing on behalf of Gourmet Gang and Geracimos signing on behalf of Sunset Beach Resort. Guinan claimed that Geracimos did not mention any other entities connected with the property.

Over the next four years, Gourmet Gang operated its business on the leased premises and made all monthly rental payments due. During the tenancy, Bluewater’s onsite managers oversaw all operations related to the premises and communicated with Gourmet Gang on the landlord’s behalf. Guinan alleged that the managers conveyed to her that the landlord wished to recoup part of the premises that had been leased to Gourmet Gang to host weddings and other events.

In October 2021, Guinan notified Tony Nichols, a Bluewater manager, that she had opted to renew the lease for a five-year term. Nichols communicated that the landlord did not wish to “move forward” with a five-year renewal and met with Guinan to renegotiate the lease agreement. Nichols proposed revised lease terms of one-year potential extensions instead of two five-year extensions. After further negotiations during which Guinan proposed her own lease revisions, Nichols informed Guinan that “Sun w[ould] never agree” to her proposed lease terms and that Bluewater’s onsite manager would be changing the locks on the premises. Despite this communication, however, Bluewater did not take immediate action to block Gourmet Gang’s access to the premises.

In March 2022, an attorney for Gourmet Gang sent a letter to the landlord’s attorney advising that Gourmet Gang planned to open for business when the new term began on April 1, 2022, unless the landlord changed the locks. The attorney advised that, if locked out of the

premises, Gourmet Gang would immediately sue the landlord for breach of contract. The landlord’s attorney responded that the landlord would not renew the lease, did not wish to continue a business relationship with Gourmet Gang, and was still planning to change the locks on the premises. The landlord’s attorney claimed to represent Bluewater and another entity called “Sun-Sunset Beach, LLC” in the dispute over the lease. On March 28, 2022, the landlord’s attorney communicated that the locks had been changed.

Gourmet Gang sued Sun Sunset Beach and Bluewater for breach of contract, tortious interference with contract, business conspiracy,3 and defamation. Sun Sunset Beach, a limited liability company based in Michigan, is the current owner of the resort property. Gourmet Gang alleged in the complaint that Sun Sunset Beach and Bluewater had breached the lease by refusing to renew the lease for a five-year term and interfering with Gourmet Gang’s quiet enjoyment of the premises.

Gourmet Gang further alleged that Bluewater had persuaded Sun Sunset Beach to breach the lease and that the two entities had conspired to deprive Gourmet Gang of its contractual rights. In support of the conspiracy claim, Gourmet Gang alleged that Bluewater—acting in concert with the landlord— attempted to force Gourmet Gang to accept new lease terms, prepared the leased premises for a new business venture, and ejected Gourmet Gang from the premises after negotiations failed. Gourmet Gang also asserted that Bluewater had acted out of spite and ill will against Guinan, as evidenced by its employees’ communications. Gourmet Gang alleged that the defendants’ actions caused injury in the form of lost profits and business opportunities and that it

3 Codes §§ 18.2-499 and 18.2-500 provide that any two persons who take concerted action to willfully and maliciously injure another’s business are guilty of business conspiracy and entitle the injured party to seek civil relief.

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Gourmet Gang, Sunset Beach Resorts, LLC v. Sun Sunset Beach RV, LLC, (Va. Ct. App. 2026).

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