Caruso Files Lawsuit Against First Confirmed Restaurant in the Development
By CHRISTIAN MONTERROSA | Reporter
Over the past year, announcements of new businesses coming to developer Rick Caruso’s Palisades Village project were the talk of the town. The first major culinary announcement went to restaurateurs Gianni and Nicola Vietina who were creating “FdeiM by Madeo,” an Italian concept restaurant—a spinoff from their famous Madeo restaurant in Beverly Hills.
When a June 7 press release announced the arrival of Hank’s by Blue Ribbon Restaurants, Caruso suddenly referred to the name as “Al Forte by Madeo” without explanation, but an obvious confirmation that the Vietinas’ concept was still coming to the Palisades.
The Al Forte name would not be mentioned or seen again until an investigation by the Palisadian-Post uncovered a legal battle between Caruso’s Palisades Village and the Vietinas’ company, Mare Mare LLC, with both parties accusing each other of breaching their contract.
Documents obtained by the Post suggest Caruso filed a legal suit against the Vietinas for breach of contract and breach of guaranty on June 22—just two weeks after the final public mention of Madeo.
“[Palisades Village] brings this lawsuit because Madeo has attempted to repudiate and refused to honor its obligations under the lease agreement,” the complaint filed by Caruso said.
“Madeo has fabricated excuses for its refusal to honor its commitments under the lease agreement. There is no basis for Madeo’s attempt to rescind the lease agreement.”
On Sept. 4, the Vietinas filed a lawsuit of their own, with allegations of fraud and unfair business practice.
According to their cross-complaint, Caruso had broken a written promise that the Madeo concept would be the exclusive Italian restaurant of the project, and reneged on an agreement that the restaurant would have a street-level patio or fully enclosed “winter garden room,” and instead was given a location “below street grade and not flat elevation equal with the street.”
City planning documents and a copy of the lease agreement between the two parties, obtained by the Post, confirm a written clause promising the exclusive rights to being the sole Italian restaurant, as well as blueprints showing a planned outdoor patio with prime placement on Sunset Boulevard.
The Vietinas’ countersuit further claims they learned that Caruso would “authorize and lease to three ‘Italian’ restaurants” in the project after their exclusive promise had been made.
One month prior to Caruso’s initial lawsuit, Porta Via—the esteemed Italian restaurant now open at the Village—was announced while Madeo was still being advertised, but it remains unclear if Porta Via was one of the restaurants being referred to.
The Vietinas state they were informed that such a patio would not be compliant with city code and therefore not possible. When Caruso “orally promised” the two co-owners that they would be able to walk away if they were unhappy with no longer having the garden room, they took him up on the offer and left the project, according to the documents, only to be sued by Caruso shortly after.
Gianni Vietina and his attorney, Joshua Kaplan, did not respond to multiple requests for comment on this story.
“While we are not able to comment on pending litigation, we are disappointed that Madeo will not be part of the project,” said a spokesperson for Caruso when asked about the allegations. “In keeping with our promise to the community, we will continue to bring exceptional offerings to Palisades Village.”
Other tenants announced by Caruso that later disappeared from public advertisements include pet accessory store Max-Bone, men’s suit shop Miller’s Oath and Marysia, a swimsuit retailer.
Permit records reviewed by the Post suggest Max-Bone was granted its building permits in July, but withdrew a month later.
At least one tenant who signed a pre-lease agreement, but later decided not to go forward with the project was forced to pay a buyout fee to avoid legal retribution, according to sources involved in the process.
The 31-page rental agreement and guaranty of lease agreement, obtained by the Post, gives a rare view into what business owners agreed on to be a part of Caruso’s $200 million vision and show details that have not been previously reported.
The 4,000-square-foot restaurant by Madeo was priced at $29,880 a month for the first five years, including a map showing they were planned to be on Sunset. If the opening date was delayed, Madeo would pay over $44,000 for every month it didn’t open, the agreement said.
Madeo’s menu would bring classic Italian dishes to accompany the not so traditional, like octopus empanadas, “tagliatelle al cinghiale with wild boar,” and a deboned rabbit baked in a wood burning oven.
Notably, the Vietinas’ claim of being promised to be the sole Italian restaurant appears to be corroborated in the agreement, although there is no mention of being at “street grade level.”
The below grade level area planned to be Madeo’s patio is now occupied with plants and flowers of the gardening staff, hidden by tall hedges.
With a preliminary court hearing scheduled for Dec. 18, Caruso has since moved on with the project, and leased the space to Tocaya Organica, a “modern organic Mexican” food chain set to open soon.
“The plan has always been to find best-in-class retailers and restaurateurs and do something unique,” said Caruso in an article by the Hollywood Reporter, a day after Madeo was announced. “We have a whole bunch of retailers that would love to be in the project, that want their typical-sized format and their typical store, and we tell them, ‘We love you, but that is not what this is about.’”
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