An Eastchester restaurateur walked off with $500,000 in furniture, fixtures and equipment, his landlord claims, after his Sea Flame Seafood & Steak restaurant failed.
Eastchester Associates Limited Partnership accused Vernon Place LLC and restaurateur Tim Demaj of conversion of assets, in an April 14 complaint filed in Westchester Supreme Court.
Demaj breached the lease, the complaint states, when he “absconded with approximately $500,000 worth of … assets” that belong to the landlord.
Sea Flame operated at 709 White Plains Road in the Vernon Place Shops, Eastchester. It promoted itself as an American steakhouse with Italian fares and seafood.
The landlord, Eastchester Associates, is managed by Boston real estate developer Richard L. Friedman.
Before Demaj opened Sea Flame, there were attempts to open a Patsy’s Pizzeria & Restaurant in 2015, a Brandi Pizzeria in 2016, and a Sugar Shack in 2018.
Demaj struck a deal to lease the 2,480-square-foot space in 2020.
And as part of the deal, according to the complaint, FF&E assets — furniture, fixtures and equipment — were to be left in place as collateral to secure the tenant’s obligations if the business closed.
The FF&E assets did not include Sea Flame’s food, beverages, dishware, glassware, silverware, linens and decorations.
Demaj allegedly defaulted on the lease on Jan. 31.
On March 17, the landlord petitioned Eastchester Justice Court to evict Sea Flame and order it to pay $412,723 in back rent.
On March 27, Demaj notified the landlord that he would be shutting down the restaurant. He said he would turn over the keys and would not remove any FF&E assets, according to the complaint, but later that day “reversed his position” and said he intended to remove chairs and tables and other items.
On March 28, the landlord tried to arrange a walkthrough with Demaj, the complaint states, and make him aware of potential liability for removing assets, but “Demaj was unwilling to meet.”
That evening, the landlord’s agents allegedly observed Demaj and others stripping the place of furniture, sinks, coolers, grills, stoves and other assets.
On March 29, Demaj allegedly prevented a locksmith from changing the locks.
On April 3, Eastchester Judge Janet M. Calano granted a warrant of eviction and awarded the landlord $412,723.
Now Eastchester Associates wants Westchester Supreme Court to find that Demaj, despite repeated warnings, orchestrated and participated in an illegal removal of assets and therefore must be held directly liable for alleged losses. It is asking for a judgment ordering Demaj and Vernon Place LLC to pay at least $500,000 for breach of lease and conversion of assets.
Attempts to find contact information for Demaj, to ask for his side of the story, failed.
Eastchester Associates is represented by White Plains attorney Kempshall C. McAndrew.
