Red Hat on the River and a group of lenders who financed the popular Irvington bistro have settled a $2 million lawsuit.
Lawyers for In Your Hat LLC, the lender group, and Red Hat Bistro LLC owners James K. Parker and Mary Beth Dooley-Parker filed a stipulation of discontinuance last month in Westchester Supreme Court.
Both sides, James Parker said in an email, “have agreed to a settlement of the past litigation and all disputes.”
The terms of the settlement were not disclosed.
The Parkers opened a French bistro in 2003 on Main Street in Irvington. In 2007, they moved across the railroad tracks to the former Lord and Burnham greenhouse factory at 1 Bridge St.
They converted a former boiler room into an airy, two-level brick and glass room with a rooftop bar, steps away from the Hudson. Their menu incorporates French bistro, Mediterranean and regional American dishes.
In Your Hat was formed in 2006 to fund Red Hat Bistro LLC. The lending group consists of Sushil Malhotra, Frank Martucci, Jeffrey Reich, William Thompson, My Hat LLC and Reicher Capital Management.
In Your Hat initially loaned the restaurateurs $700,000 and later another $100,000. Besides loan payments, the lenders got a share of gross receipts and a monthly food allowance.
In Your Hat sued the Parkers and the bistro in April for breach of contract, claiming they had stopped making payments late last year.
“Both parties are happy to move on with their respective businesses,” James Parker said in an email about the settlement. “We are happy to report that the process was amicable and we’re glad to put this chapter behind us.”
Red Hat was represented by Darius P. Chafizadeh of Harris Beach PLLC in White Plains. In Your Hat was represented by Dinesh U. Dadlani of Segal McCambridge Singer & Mahoney in Jersey City, New Jersey.