Restaurant management company sues after transaction falls through

A company is suing over claims its liquor license and lease transaction fell through.

The Coast, Chicago LLC - Restaurant & Bar filed a lawsuit Jan. 3 in the Cook County Circuit Court against Delmar and Michael Bloem, Mama G LLC and DBW III LLC, citing fraud, breach of agreement to negotiate in good faith, promissory estoppel and breach of contract.

According to the complaint, during November and December 2013, The Coast was engaged in negotiations with Mama G, a company purportedly owned by DBW III LLC, to buy the lease and liquor license for the property at 1045 N. Rush St. in Chicago, where a nightclub called "Proof" currently is located.

The Coast claims that on Dec. 21, a final acquisition agreement was reached, wherein possession would change hands Jan. 1. The company claims the defendants never had the intention nor the ability to transfer ownership of the lease and liquor license.

According to the lawsuit, the plaintiff was not only misinformed about the ownership structure of Mama G and DBW III LLC, but was also asked to pay rent for months during negotiations and spent considerable sums preparing construction plans for the property.

The Coast is seeking more than $50,000 in damages and is being represented in the case by attorneys Williams Montgomery & John Ltd.

Cook County Circuit Court Case No. 2014L000071.

This is a report on a civil lawsuit filed in the Cook County Circuit Court. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story.