The plaintiff, a food and beverage operator, sued the defendant hotel for unlawful and bad faith termination of their commercial leases and service agreements.
The hotel terminated the agreements during the COVID-19 pandemic, alleging unpaid rent and other breaches, while secretly negotiating with a replacement operator.
The court found the termination was unlawful and in bad faith, as the hotel wrongfully withheld deposits, owed the plaintiff money, and unreasonably refused to assist with a government rent subsidy application.
The court awarded the plaintiff reliance damages for its capital investments and employee termination costs, less a set-off for the hotel's proven counterclaim.
