VH-Minneapolis South Inc v. TGI Friday's Inc., Akaashaman LLC
Court
Court of Appeals of Minnesota
Decided
August 11, 2025
Jurisdiction
SA
Importance
44%
Practice Areas
Case Summary
This opinion is nonprecedential except as provided by Minn. R. Civ. App. P. 136.01, subd. 1(c). STATE OF MINNESOTA IN COURT OF APPEALS A24-1820 VH-Minneapolis South Inc, Respondent, vs. TGI Friday’s Inc., Defendant, Akaashaman LLC, Appellant. Filed August 11, 2025 Affirmed Reyes, Judge Hennepin County District Court File No. 27-CV-20-12600 Patrick J. Rooney, Anna M. Swiecichowski, Fafinski Mark & Johnson, PA, Eden Prairie, Minnesota (for respondent) Jeffrey M. Markowitz, Arthur, Chapman, Kettering, Smetak & Pikala, PA, Minneapolis, Minnesota; and Adam L. Massaro (pro hac vice), Reed Smith, Denver, Colorado (for appellant) Considered and decided by Cochran, Presiding Judge; Reyes, Judge; and Schmidt, Judge. NONPRECEDENTIAL OPINION REYES, Judge Appellant-easement holder challenges the district court’s award of monetary damages to respondent-property owner for nonpayment of easement expenses, arguing that respondent did not properly furnish expense invoices and failed to provide notice of default as required by the easement agreement. We affirm. FACTS This case arises from the nonpayment of expenses associated with a parking-lot easement. Appellant Akaashaman LLC owns a TGI Friday’s restaurant in Bloomington, and respondent VH-Minneapolis South (VH) owns a neighboring DoubleTree by Hilton hotel. VH’s property includes the parking lot immediately surrounding Akaashaman’s restaurant (the common area). Without an easement, Akaashaman would lack access to the parking lot. The Easement The prior owners of the properties entered into an easement agreement in 1989. The agreement grants the restaurant owner an easement that gives its guests and employees access to the entirety of the parking lot owned by the hotel owner. The easement is perpetual and nonexclusive, runs with the land, and is binding upon successors in interest. Under the agreement, the hotel owner is responsible for maintaining the common area, which includes keeping it safe, landscaped, insured, properly surfaced, adequately lit, and clean. In exchange, the restaurant owner must reimburse the hotel owner a pro rata share of approximately 16% of the costs “reasonably and directly expended” by the hotel 2 owner. To be reimbursed, the hotel owner “shall furnish . . . a statement” detailing the common-area expenses within 45 days of the end of “each one-half calendar period.” The hotel owner must keep records of the common-area expenses for at least 12 months following the delivery of each invoice. The restaurant owner, “subject to the right of reasonable verification,” is required to “pay the invoice within twenty . . . days of receipt.” Under paragraph seven of the agreement, a party is in default under the agreement if it fails to comply with “any of its obligations under [the] [a]greement,” provided that the noncompliance “continues for ten days after such party’s receipt of notice of default pursuant to paragraph 14.” Paragraph 14 states that “[n]otice may be given by . . . depositing written notice in the United States mail, certified mail” at the listed addresses “or such other address as may be designated from time to time by any party for itself.” (Emphasis added.) Initial Payment of Costs When Akaashaman, owned by Anil Yadav, purchased the restaurant property in December 2015, Bloomington Hotel Investors LLC (BHI) owned the hotel property. BHI’s director of finance, Russell Huhner, would send the biannual invoices to individuals associated with Yadav, including Tejal Chokshi, Kevin Kevorkian, and Terry Sayles. Chokshi is the controller and chief financial officer for Yadav Enterprises, owned by Anil Yadav. Kevorkian is counsel for Yadav. Sayles is an employee of Yadav Enterprises and the director of operations for a subsidiary of the company. Akaashaman initially made all payments required under the agreement. 3 Nonpayment Akaashaman failed to pay the common-area expenses for the first half of 2019 and failed to make any additional payments. In August 2019, Huhner sent an invoice for the first half of the year to Chokshi, Kevorkian, and Sayles. Huhner met with Sayles and Stacy Franklin, an employee of Yadav Enterprises, t
Case Details
Case Details
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Status
Decided
Date Decided
August 11, 2025
Jurisdiction
SA
Court Type
federal
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Case Summary
AI-generated comprehensive summary with legal analysis
Case Overview
In the case of VH-Minneapolis South Inc v. TGI Friday's Inc., Akaashaman LLC, the Court of Appeals of Minnesota addressed significant issues regarding the nonpayment of easement expenses related to a shared parking lot between a hotel and a restaurant. The court ultimately affirmed the district court's decision to award damages to the hotel owner for the restaurant's failure to pay.
Legal Issues
The court examined several critical legal questions:
- Did the respondent properly furnish expense invoices and provide notice of default as required by the easement agreement?
- Did VH's late submission of the invoice for the second half of 2022 excuse Akaashaman's payment obligation?
- Did VH provide adequate notice of default to Akaashaman?
Factual Background
Key facts of the case include:
- Akaashaman LLC failed to pay common-area expenses for the first half of 2019 and subsequent periods, triggering enforcement of the easement agreement.
- The easement agreement was established in 1989 and binds successors, highlighting ongoing obligations.
- VH submitted the invoice for the second half of 2022 37 days late, which Akaashaman argued should relieve them of payment responsibility.
- VH provided notice of default through various communications, including email and phone calls.
Court's Analysis
The court's reasoning included:
- The respondent adequately provided invoices to individuals associated with the appellant, and a late invoice does not excuse payment obligations. The court emphasized that the contract stipulates payment obligations regardless of minor delays in invoicing.
- Timely invoice submission is not a condition precedent to performance, as the contract lacked unequivocal language regarding this requirement.
- VH's communications were sufficient to establish Akaashaman's default, as the agreement did not require separate notices for continuing defaults.
Holdings and Decision
The court made the following rulings:
- The district court affirmed the award of $343,200.27 in damages to the respondent for breach of contract.
- Akaashaman is liable for unpaid easement expenses, applying to all unpaid common-area expenses under the easement agreement.
Legal Precedents
The court cited several important precedents:
- River City Mort. Corp. v. Baldus, 695 N.W.2d 375 (Minn. App. 2005) - Establishes the standard of review for findings in a bench trial.
- Danielson v. Danielson, 721 N.W.2d 335 (Minn. 2006) - Discusses the parol-evidence rule regarding extrinsic evidence in contract interpretation.
- Capistrant v. Lifetouch Nat’l Sch. Studios, Inc., 916 N.W.2d 23 (Minn. 2018) - Defines conditions precedent in contract law.
Practical Implications
This case underscores the importance of adhering to easement agreements and the enforceability of contractual obligations. Legal practitioners should note:
- The significance of timely invoicing and proper notice of default in contract disputes.
- The court's interpretation of the parol evidence rule and its application in explaining parties' conduct post-agreement.
- The implications for future cases involving easement law, contract law, and real estate disputes.
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Case Details
Legal case information
Status
Decided
Date Decided
August 11, 2025
Jurisdiction
SA
Court Type
federal
Legal Significance
Case importance metrics
Metadata
Additional information
Quick Actions
Case management tools