NEW ORLEANS – A St. Tammany Parish company says Circle K backed out of a lease agreement after the time for cancellation had already expired.
Malik & Sons LLC filed a lawsuit Dec. 18 in U.S. District Court for the Eastern District of Louisiana against Circle K Stores Inc., alleging breach of contract
According to the complaint, Circle K Stores agreed to lease property from Malik & Sons on Aug. 28, 2014, with a 90-day period in which to cancel the agreement. The suit says Circle K wrote to Malik & Sons to terminate on Nov. 11, 2014, but rescinded the cancellation almost two weeks later. By that time, the due diligence period was nearly up, the claim states, so the lease was again in full force.
However, the plaintiff claims that Circle K again wrote a letter terminating the lease, but this time on Nov. 27, one day after the 90-day period had expired, leaving the original lease valid.
Malik & Sons seeks to either continue the lease and collect rent or to terminate the lease if Circle K pays the remaining rent plus an early termination penalty. It is represented by attorneys Timothy R. Richardson and Freeman R. Matthews of Usry, Weeks & Matthews in New Orleans.
U.S. District Court for the Eastern District Case number 2:15-cv-06938