MJ Harbor Hotel, LLC v. McCormick & Schmick Restaurant Corp.

599 F. Supp. 2d 612, 2009 U.S. Dist. LEXIS 16385, 2009 WL 499231
CourtDistrict Court, D. Maryland
DecidedFebruary 18, 2009
DocketCivil WDQ-07-2368
StatusPublished
Cited by1 cases

This text of 599 F. Supp. 2d 612 (MJ Harbor Hotel, LLC v. McCormick & Schmick Restaurant Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MJ Harbor Hotel, LLC v. McCormick & Schmick Restaurant Corp., 599 F. Supp. 2d 612, 2009 U.S. Dist. LEXIS 16385, 2009 WL 499231 (D. Md. 2009).

Opinion

MEMORANDUM OPINION

WILLIAM D. QUARLES, JR., District Judge.

MJ Harbor Hotel, LLC (“Harbor Hotel”) sued McCormick & Schmick Restaurant Corp. and McCormick & Schmick Acquisition Corp. (“Defendants”) for breach of a lease agreement and for a declaratory judgment. Pending are: (1) Harbor Hotel’s motion for partial summary judgment, (2) the Defendants’ cross-motion for summary judgment, and (3) Harbor Hotel’s motion to strike the Defendants’ expert report and testimony. For the following reasons, the motions will be denied.

I. Background

On July 16, 1997, McCormick & Schmick ECP III, a predecessor of McCormick & Schmick Restaurant Corp., contracted with The Inn at Pier 5 Limited Partnership, a predecessor of Harbor Hotel, to lease space in the Pier 5 complex (“Pier 5”) located at 711 Eastern Avenue, Baltimore Maryland. Am. Compl. ¶¶ 7, 14. The *615 space was to be used for “[t]he operation of an upscale, sit-down, full service white tablecloth seafood restaurant, together with accompanying bar/alcoholic beverage service.... ” PL Mot. Summ. J. Ex. 1 § 1.23. Sometime before 2001, Harbor Hotel became the landlord under the 1997 lease. Id. at ¶20. On August 17, 2001, McCormick & Schmick Restaurant Corp. became the tenant under the lease. Id. at ¶ 22. McCormick & Schmick Acquisition Corp. is now the guarantor of the tenant’s obligations under the lease. Id.

Section 10.5 of the 1997 lease restricts the tenant from directly or indirectly operating a restaurant “of a similar kind” within a 10 mile radius of the leased property. PL Mot. Summ. J. Ex. 1 § 10.5. Section 10.5 states that “any restaurant operating under the name of ‘McCormick and Schmick’ and/or whose menu consists of 50% or more seafood entree items shall be deemed ‘another restaurant of a similar kind’...” Id.

Section 39.1.2 of the 1997 lease defines a Default as any failure by the tenant to perform a “covenant, agreement, obligation, or condition ... other than the payment of Rent or Additional Rent” after the landlord has provided notice of the default and the tenant has failed to cure within 30 days. Id. at § 39.1.2. Under § 10.5 of the lease, rent includes a percentage of the income of a similar restaurant operated by McCormick & Schmick. Id. at § 10.5.

In March 2003, McCormick & Schmick Restaurant Corp. contracted with Harbor Place Associates Limited Partnership, an affiliate of the Rouse Companies, to lease space in the Pratt Street Pavilion of Har-borplace. Harborplace Lease. That space was to be used for “the operation of a full service, medium to better quality M & S Grill restaurant serving lunch and dinner and offering menu items substantially similar to those offered in the majority of M & S Grill restaurants.” PL Mot. Summ. J. Ex. 4 § l.l.F. In October, 2003, McCormick & Schmick Restaurant Corp. opened an M & S Grill restaurant in Harborplace. Def. Mot. Summ. J. at 5. The Harborplace M & S Grill is located within 10 miles of the Pier 5 McCormick & Schmick.

On July 31, 2007, Harbor Hotel sued the Defendants in the Circuit Court for Baltimore City. Notice of Removal ¶ 1. On September 5, 2007, the Defendants removed the case. On January 3, 2008, the Plaintiff filed its Amended Complaint seeking a declaration that Harbor Hotel is owed damages recoverable under § 10.5 of the lease. On July 3, 2008, Harbor Hotel moved to strike the Defendants’ expert report and testimony. Paper No. 33. On October 17, 2008, Harbor Hotel moved for partial summary judgment. Paper No. 50. On November 6, 2008, the Defendants filed a cross-motion for summary judgment. Paper No. 54. The motions were heard on February 11, 2009. 1

*616 II. Analysis

A. Harbor Hotel’s Motion for Partial Summary Judgment

1. Standard of Review

Under Rule 56(c), summary judgment is appropriate when there is no genuine issue of material fact, and the moving party is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). A dispute about a material fact is genuine “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

The Court must view the facts and reasonable inferences drawn therefrom “in the light most favorable to the party opposing the motion.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 8 L.Ed.2d 176 (1962) (per curiam)). The opposing party, however, must produce evidence upon which a reasonable factfinder could rely. Celotex, 477 U.S. at 324, 106 S.Ct. 2548. A mere “scintilla” of evidence is insufficient to preclude summary judgment. Anderson, 477 U.S. at 252, 106 S.Ct. 2505.

2. Is the M & S Grill “Operating under the name ‘McCormick & Schmick’ ”?

Harbor Hotel contends that M & S Grill is operating under the name “McCormick & Schmick,” in violation of § 10.5 of the 1997 lease, because: (1) “M & S” is an “obvious” reference to “McCormick & Schmick;” (2) the Defendants list M & S Grill as a restaurant operated under the name “McCormick & Schmick” on the company website; and (3) M & S Grill is listed as operating under the name “McCormick & Schmick” in McCormick & Schmick Seafood Restaurants, Inc.’s SEC filings. PI. Mot. Summ. J. at 4,15.

The Defendants counter that: (1) “M & S” is not literally “McCormick & Schmick;” (2) only a restaurant named “McCormick & Schmick” violates § 10.5; and (3) M & S Grill’s trade name is not “McCormick & Schmick.” Def. Mot. Summ. J. at 17.

If- a contract is unambiguous, “the court must give effect to its plain meaning and not contemplate what the parties may have subjectively intended ...” Nova Research, Inc. v. Penske Truck Leasing Co., 405 Md. 435, 448, 952 A.2d 275, 283 (2008). A contract term is ambiguous if, “when read by a reasonably prudent person, it is susceptible of more than one meaning.” Nova Research, Inc. v. Penske Truck Leasing Co., 405 Md. 435, 448, 952 A.2d 275, 283 (2008).

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599 F. Supp. 2d 612, 2009 U.S. Dist. LEXIS 16385, 2009 WL 499231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mj-harbor-hotel-llc-v-mccormick-schmick-restaurant-corp-mdd-2009.