Lawyers representing the New Jersey-based company that owns Riverwalk Plaza in South Charleston and a local gambling parlor owner on Monday each claimed the other party was responsible for breaching a lease agreement between the entities in 2014.
BAI Riverwalk is suing Mimi's owner Harold Arbaugh for allegedly breaking the lease agreement, and Arbaugh's lawyers claim BAI's management company's response, or alleged lack thereof, to issues with the building made it impossible for his business to generate revenue.
BAI's attorney, Mychal Schulz, argued Arbaugh was looking for excuses to vacate the property and break the lease, while Arbaugh's attorney, David Barney, said Arbaugh was well within his rights to break the agreement as BAI had breached its end of the contract.
Kanawha County Circuit Court Judge Joanna Tabit heard arguments in the case Monday at the Kanawha County Courthouse. BAI is seeking $91,285.80 in damages plus court and attorneys' fees.
In 2011, BAI Riverwalk purchased the South Charleston plaza, which also includes TJ Maxx and Kroger, from Kimco Realty Corp. At the time, Mimi's, which would later operate as Lisa's, was in a lease agreement for the space in the northwestern corner of the plaza, but the business wasn't open as Arbaugh was in legal proceedings with the City of South Charleston, he testified Monday.
As a condition of purchasing the property, BAI, by way of its management company Zamias Services, provided for mold remediation at the facility, Stephen Zamias, vice president of assets and management for Zimias Services, testified Monday. Zamias Services is headquartered in Johnstown, Pennsylvania.
Lisa's opened in the plaza in January 2012. Arbaugh testified Monday that customers began complaining of an odor in the business that same month, and mold remediation took place again in May 2012. Barney said neither mold remediation was successful, and Tommy Clay, owner of Clay's Music Company in Belle, and Ron McVey, president of Camel Technologies in Dunbar, testified that the roof in the facility leaked and they saw mold there.
Clay provided video gambling machines for the business, but he said he removed them after they sustained water damage. McVey testified his technicians cleaned and replaced cameras in the facility multiple times after they showed signs of water damage.
The roof of the facility was replaced during the summer of 2013, Zamias testified, and Arbaugh claimed construction crew members ripped out telephone line and other wiring necessary to his business's function during that project.
The last rent payment Arbaugh made to BAI was on Dec. 1, 2013, and he vacated the property in January 2014.
Schulz pointed out Monday that none of the three men who testified on behalf of the defense provided any photos or other documents that proved the facility's roof leaked or mold was present.
In November 2014, BAI leased one-half of the space previously occupied by Lisa's to Ivy's. The other half of the space has not been leased since it was vacated by Mimi's, operating as Lisa's.
Tabit said Monday they case would continue 30 days after attorneys received transcripts of Monday's proceedings.
Reach Lacie Pierson at lacie.pierson@wvgazettemail.com, 304-348-1723 or follow @LaciePierson on Twitter.