Lemon Leaf sues AV Country Club

The complaint also names Board of Directors President AJ Martinez, Vice President Gina Hutchinson, bar manager Jose Trejos, directors Greg Chic, Zac Cullen, and does one through 10.

According to the complaint, Martinez and Chic threatened to destroy Grado’s business, personally attacked her and entered into a “secret and ‘underground’ advertising campaign to continue to divert business away from The Lemon Leaf.”

“I tried everything to resolve with the AV Country Club, and the board members and I even asked them to mediate, so I have all confidence in the justice system that it will be taken care of,” Grado said Friday.

Hutchinson forwarded an email seeking comment to the country club’s attorney, who did not immediately respond.

Grado signed a three-year agreement with the country club in July 2020 to move her restaurant from Lancaster to Palmdale. However, Grado could not open The Lemon Leaf in the kitchen of the country club until December 2020 due to the club negligently failing to maintain the kitchen and premises in a reasonably safe and usable condition, the complaint said.

“As a result of AVCC’s negligence in failing to maintain the premises and failure to disclose the health and safety deficiencies. Plaintiff suffered proximately caused damages in the amount of at least $90,000,” the complaint said.

The agreement provided for the negotiation of three three-year extensions. The country club sent a notice of non-renewal of agreement to Grado on or about Feb. 13 with a notice to vacate the premises on or before June 23, the complaint said. The country club failed to attempt to reach mutually agreeable terms for the renewal of the agreement prior to serving the notice of non-renewal of agreement.

“In sending the notice, AVCC unilaterally determined that it did not want to renew its agreement with plaintiffs under any terms, without meeting and conferring in good faith with plaintiffs about any mutually agreeable terms for extending the length of the agreement,” the complaint said.

If forced to leave the country club, Grado will have nowhere to move The Lemon Leaf in order to restart her business, the complaint said.

“Plaintiffs have acquired many loyal customers, and cultivated many unique and invaluable local business relationships,” the complaint said. “They have grown their business and made a name for themselves in the community. Their reputation precedes itself. Countless hours have been put into the business. Closing the business now will destroy plaintiffs.”

According to the complaint, the country club breached the agreement in part by negotiating terms and lowering prices/revising contracts already in place.

“Specifically, on 7/9/22, Greg Chic sent an email unilaterally changing the pricing of Samantha May’s wedding. On 7/18/22, Chic booked an event and then sent the contract to plaintiffs for the food portion of the event. Again, on June 11, 2022, Mr. Chic interfered with plaintiffs’ pricing for the Desert Christian Prom. On July 5, 2022, he removed 3% of fees from the Rebecca Chavez Party from plaintiffs contract for Adrianna’s Pool Party,” the complaint said.

On Jan. 31, 2022, Hutchinson sent an email interfering with The Lemon Leaf’s pricing, demanding $17.44 per person for member buffets, Cinco de Mayo buffet, pasta buffets, Easter and Mother’s Day buffets, the complaint said.

“Thereafter, she bullied plaintiff into lowering food cost for all events for members under the threat of bringing outside food in,” the complaint said.

According to the complaint, on Jan. 27,  2022, board member Cullen indicated in a meeting that was reflected in minutes that Trejos had taken the role of planning outside events like weddings and Sweet 16’s to add revenue for the club even though all events at the country club belonged solely to The Lemon Leaf under the terms of the agreement. Then, on Feb. 3, 2022, Martinez and Trejos held a meeting with Jose Mejia of Ranch Weddings as outside coordinators and caterers.

After the Feb. 3, 2022 meeting, the country club began intercepting banquet inquiries when made by phone. The club changed its website to state that it had a banquet package and created its own banquet contract, the complaint said.

“Then, through the board members, managers, employees and members, started telling (Lemon Leaf) customers that LL was no longer doing banquets. From that point forward, AVCC continued to intercept the banquet inquiries and redirect plaintiffs’ customers and potential customers,” the complaint said. “Board member Hutchison’s 2 nieces were responsible for answering phone calls relating to the scheduling of events. Upon information and belief, Hutchison directed her nieces to divert plaintiffs’ calls to defendant Jose Trejos.”

In addition, the complaint alleges that the country club paid house accounts late, which caused damage to Grado, who had to pay sales tax on the items sold even though it she was not receiving the monies due.

Grado seeks at least $2.12 million for breach of contract and general damages against the country club, according to proof at trial, as well as reasonable attorney’s fees and costs. She is seeking at least $760,000 for breach of the covenant of good faith and fair dealing, that the notice of non-renewal was defective because it was served prior to the country club undertaking any negotiation for mutually agreeable terms for the extension of the agreement; and an injunction preventing the club from evicting her.

She is also seeking $90,000 for alleged negligence by the country club and $175,000 each for the sixth and seventh causes of action against the country club, Martinez and Chic for fraudulent promises without intent to perform.

jdrake@avpress.com