Shades Tap Room, a well-known brewery in Salt Lake City, is currently embroiled in a legal battle with its landlord over allegations of breaching their lease agreement.
The lawsuit, filed on June 18 by Axiom Properties, a subsidiary of Price Realty Group, accuses Shades of defaulting on lease payments and falling behind financially since moving to its new location at 1388 S. 300 W.
According to court documents, Shades allegedly owes just under $20,000 for unpaid lease payments, with the landlord claiming they sent a default notice in early May.
In response, Shades denies the landlord’s claims and asserts its Ballpark restaurant continues to operate as usual. This lawsuit marks the second legal issue Shades has encountered in state court this year.
The first lawsuit pertains to its other location in Downtown Salt Lake City, where a separate patron injury case is also active.
Court records reveal that Shades and the landlords entered into a lease agreement in June 2023, following the brewery’s relocation from South Salt Lake.
The landlord’s lawsuit contends that Shades defaulted on the lease obligations, starting with allegations of missed payments as early as May 2023.
They sent a formal notice of default around May 6, and a follow-up three-day notice on May 12. According to the lawsuit, Shades made the necessary payments immediately after receiving these notices, although the landlords are maintaining that the payments were overdue.
In its legal response, filed on June 24, Shades disputes the landlords’ claims, stating that the alleged defaults were not adequately addressed in a timely manner and that the three-day notice did not comply with the lease terms.
The attorney for Shades emphasized in court filings that any outstanding balances were fully settled within the required ten-day cure period.
Additionally, the lawsuit alleges that Shades has failed to adhere to specific construction obligations outlined in the lease, including the development of a rooftop patio and vital HVAC installations.
Shades has categorically denied these allegations and stated that issues related to construction work were due to a third-party contractor, which Shades claims it had no control over.
The landlord’s claims also extend to the brewery’s purported failure to provide essential documentation related to the lease terms, such as construction cost breakdowns, occupation certificates, and finalized construction drawings.
Shades refuted this claim as well, asserting that it had fulfilled its documentation obligations.
On May 30, the landlords issued another three-day notice followed by a five-day notice to quit on June 10. Shades’ legal team argues that these notices were improperly served and baseless.
The original lawsuit claims that Shades now owes over $21,000 in unpaid rent and an additional $77,000 related to abated rent resulting from the alleged lease violations.
In total, the landlords are pursuing damages amounting to $98,755 as part of the lawsuit.
When contacted for comments, Shades co-owner Alexandra Ortiz directed inquiries to the company attorney. However, no response was received from Shades’ legal representation or from Price Realty Group as of the last inquiry on Monday.
A hearing regarding the matter was conducted on July 1, but court records do not indicate any forthcoming dates for additional hearings in the 3rd District Court of Salt Lake City.
Previous legal troubles for Shades also include a dismissed eviction lawsuit from September 2021, related to their former location in South Salt Lake, which was closed due to inactivity in July 2022.
Moreover, Shades’ Downtown Salt Lake City venue, Shades on State, is facing its own legal battles stemming from a personal injury claim related to an altercation that occurred earlier this year. A hearing regarding this case is anticipated in August at West Jordan’s 3rd District Court.
image source from：buildingsaltlake
