Principals behind the two-restaurant chain that launched as Mahony & Sons and recently rebranded as Mahony's Tavern are squabbling over who is entitled to corporate proceeds in a dispute that has landed in BC Supreme Court.
The allegation is that at least $800,000 plus interest is at stake.
The core of the dispute relates to the company's Stamps Landing location, which the plaintiff alleges is losing money. The other location, near the 91原创 Convention Centre, at Burrard Landing, in contrast, is making money, according to the notice of civil claim. The plaintiffs say that they solely invested in the Burrard Landing location, and they are claiming that the Burrard Landing location is subsidizing the Stamps Landing location
Renata Investments Ltd. and Mahony & Sons Burrard Landing LP are suing Burrard Landing Enterprises, Core Restaurants Ltd., Mahony & Sons Stamps Landing LP and John aand Jane Doe.
Renata, which claims to be an original investor in the Mahony & Sons location at Burrard Landing, alleges that it signed a partnership agreement that said profit would be split between the partners and that there would be no comingling of funds between the Burrard Landing restaurant and any other ventures connected with Burrard Landing Enterprises Ltd., which was another investor in the original Burrard Landing restaurant.
The Burrard Landing restaurant opened in 2011 and was successful, the claim says. Some of the partners wanted to expand to open a second restaurant, at Stamps Landing, but Renata declined to be part of that venture, which launched in 2012.
"Beginning in or around 2014, and continuing to the present, [defendant Burrard Landing] Enterprises made large advances from the funds of Burrard Landing to Stamps Landing and to Core Restaurants," Renata alleges in its notice of civil claim.
Core Restaurants, Burrard Landing Enterprises Ltd. and the general partner of Stamps Landing, Mahony & Sons Stamps Landing Enterprises Ltd., were all under common control by Peter Mahony and other members of his family, Renata said in its lawsuit.
"The related-party advances are unsecured and without fixed terms of repayment," it said. "The related party advances to Core Restaurants have never earned interest."
The lawsuit said that between 2014 and 2019, interest was earned on the related-party advances to Stamps Landing at an eight-per-cent interest rate but that interest was not paid by Stamps Landing from 2020 onwards.
"The related-party advances were made by [defendant Burrard Landing] Enterprises for the purpose of benefitting Stamps Landing, and Burrard Landing has suffered loss and damage therefrom," Renata claims.
"The amount outstanding to Burrard Landing on the related-party advances is at least $800,000 excluding interest."
Renata is alleging that there was a breach of the partnership and that it is owed general and punitive damages and a judgment for debt.
None of the allegations has been proven in court.
No response to the notice of civil claim has yet been filed.
