FS Inc, Owner Of Monaco Towers, Sues Tenants For $130k For Unpaid Rent
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By Alric Lindsay
According to a claim filed in the Grand Court on August 23, 2024, FS Inc., the owner of the property known as Monaco Towers, is suing CNVS Digital Labs (First Defendant), Gregory Owen Wallis (Second Defendant and director of First Defendant), and Kevin Peter Breel (Third Defendant and director of First Defendant) for US$130,748.08 in outstanding rent and US$18,723.50 for fit-out fees.
Based on the claim, FS Inc. entered into a lease agreement with the First Defendant on or about March 29, 2022, to lease the commercial space known as Unit 2 within Tower III of Monaco Towers (Registration Section George Town Commercial Block OPY, Parcel 68) (the “Premises”).
The claim added that FS Inc. and the First Defendant executed a side letter in March 2022 (“Side Letter”), in which it was agreed that the landlord would incur the US$40,000 cost of fitting out the unit, and the tenants would reimburse the landlord by way of additional rent.
The claim explained that, in accordance with the Side Letter, FS Inc. paid the fit-out costs; however, the First Defendant only made payments of additional rent up to around November 1, 2023.
Further, the claim alleged that the regular monthly rent was not paid after November 2023.
Given the circumstances, the claim said that FS Inc’s lawyers wrote to the Defendants in May 2024 informing them of the breaches and demanding that they be remedied; however, no response was received to that letter.
The claim added that the Defendants were advised of an ongoing breach of the lease on July 12, 2024, and noted that the Premises had not been accessed since approximately December 2023. FSInc’s lawyers reportedly asked the Second and Third Defendants to confirm whether the First Defendant had abandoned the Premises. No response was received to that letter.
As a result of these alleged breaches, FS Inc. is asking the Court for the following orders and declarations:
- US$ 130,748.08 for the arrears of Rent, Maintenance Fees, Utilities and Additional Rent owing under the terms of the Lease and Side Letter up until 1 August 2024;
- In accordance with the terms of the Side Letter, the balance of the outstanding Fit-out fees, separate from the Additional Rent addressed above, will be reimbursed in the amount of US$18,723.50.
- Contractual Interest in the sum of US$ 1,121.35 as of 1 August 2024 and per diem interest in the sum of US$ 47.09. Alternatively, pre-judgment and post-judgment interest on the above amounts pursuant to the Judicature Act (2021 Revision);
- Damages for ongoing breach of the Lease;
- Contractual interest or alternatively interest pursuant to the Judicature Act (2021 Revision).
- A declaration that the First Defendant has abandoned the Premises. Alternatively, a declaration that the Lease has been forfeited and an order for possession.
- Costs on a full indemnity basis pursuant to clause 4.27 of the Lease.
