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Law360 (June 11, 2020, 5:55 PM EDT) -- A state district judge in Houston granted a temporary restraining order on Wednesday at the request of Houston restaurant chains Landry's and Morton's to prevent a real estate company from denying access to two properties over an apparent rent-related dispute.
Parent companies Landry's Seafood Inn and Oyster Bar-Galveston and Morton's of Chicago/Houston had filed the lawsuit on Tuesday asking the court for a temporary restraining order prohibiting Weingarten Realty Investors from following through with its threat to deny access. The restaurants at issue are LaGriglia on West Gray Street and Morton's on Westheimer Road, which the chains say have suffered sizable financial losses in the wake of government restrictions prompted by the coronavirus pandemic.
The judge granted the temporary restraining order on Wednesday, holding the restaurants had shown they were likely entitled to a temporary injunction, "and that unless defendants are immediately restrained and enjoined from interfering in the restaurant business of movants, movants will suffer irreparable harm."
The order prohibits Weingarten from taking any action that would interfere with access to the property or with business operations. A hearing on a motion for temporary injunction is set for June 19.
In the request for a temporary restraining order, the restaurants detailed the COVID-19-related restrictions that have been placed on the restaurant industry as a whole, and discussed the financial difficulties that have resulted.
"The evidence will establish that forced closure due to governmental order, as well as the implementation of capacity restrictions under governmental order have resulted in significant financial losses to movants," the petition said.
The restaurants filed an affidavit in support of their request from Rodney Lerner, Landry's vice president of real estate, who told the court he emailed a Weingarten representative on June 9 at 9:30 a.m.
The email said, "I was able to make a little progress last night with my executive team on the rent deferral concept. Let me get back to you later in the week."
The Weingarten representative responded two minutes later, "Scheduled for lockout sooner than that," according to the affidavit.
Weingarten declined to comment Thursday. Counsel for the restaurants did not immediately respond to a request for comment Thursday.
Landry's and Morton's are represented by Michael T. Gallagher, Pamela McLemore and Boyd Smith of The Gallagher Law Firm.
Counsel information for Weingarten wasn't immediately available Thursday.
The case is Landry's Seafood Inn & Oyster Bar-Galveston Inc. et al. v. Weingarten Realty Investors et al., case number 2020-34588, in the 151st District Court in Harris County, Texas.
--Editing by Bruce Goldman.
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