Taco Bell Cantina franchise owner suing San Antonio landlord over lease

San Antonio Taco LLC — an entity formed to operate a Taco Bell Cantina restaurant — claims landlord Mike Litofsky of Main Street Properties has “intentionally interfered with the formation” of its franchise agreement by refusing to fulfill the terms of its lease agreement signed with the previous owner of the historic Sol Frank building at 517 E. Houston St. less San Antonio Taco LLC — an entity formed to operate a Taco Bell Cantina restaurant — claims landlord Mike Litofsky of Main Street Properties has “intentionally interfered with the formation” of its ... more Photo: /Richard Webner, San Antonio Express-News Photo: /Richard Webner, San Antonio Express-News Image 1 of / 3 Caption Close Taco Bell Cantina franchise owner suing San Antonio landlord over lease 1 / 3 Back to Gallery

A franchisee attempting to open a new kind of Taco Bell restaurant in downtown San Antonio is suing its landlord for allegedly ignoring its lease agreements and obstructing efforts to open the restaurant.

San Antonio Taco LLC —formed to operate a Taco Bell Cantina restaurant — claims landlord Mike Litofsky of Main Street Properties has “intentionally interfered with the formation” of its franchise agreement by refusing to fulfill the terms of its lease signed with the previous owner of the historic Sol Frank building at 517 E. Houston St.

San Antonio Taco alleges Litofsky and Main Street Properties have also threatened to find other tenants to fill the space. It’s seeking an injunction against Litofsky to prevent the developer from seeking new tenants for the three-story building and a judgment demanding the lease terms be enforced.

Litofsky and Main Street Properties “failed and refused, and still fail and refuse, to perform the lease according to its terms,” San Antonio Taco said in a lawsuit filed in Bexar County court Tuesday.

Instead, the defendants “in an effort to strong-arm (San Antonio Taco) to renegotiate the lease, have threatened to take all steps to aggressively interrupt its business and oppose any request for a liquor license made by” San Antonio Taco, the plaintiff said.

A lawyer for San Antonio Taco did not return calls requesting comment.

State District Judge David Canales issued a temporary restraining order Thursday preventing Litofsky and Main Street Properties from speaking with potential tenants to fill the building’s two remaining floors, Litofsky said in a phone interview.

Litofsky declined to discuss specific allegations made in the lawsuit because he said he has not had time to fully review the case. However, he said San Antonio Taco had a “pending agreement” to occupy the space but didn’t fulfill portions of the agreement, nullifying the lease.

“They didn’t live up to their obligations and terms of the commitments they made,” Litofsky said. “I think they’re just playing legal chess to try to get back into the deal."

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jfechter@express-news.net