AMS soft-serves Qoola $100,000 lawsuit

After the Qoola frozen yogurt outlet in the Nest didn’t pay rent for over two years, the AMS has filed a lawsuit against them for a sum potentially upwards of $100,000.

On August 17, 2017, the lawyer for the AMS delivered Qoola notice of their breach of the sublease — 26 months after Qoola had been in the Nest without paying rent. At that time, Qoola owed a sum of $87,003.33 plus accrued interest of $11,266.72.

Qoola made no payment, and on August 28, the AMS terminated the sublease and demanded that Qoola vacate the premises.

Now, the AMS has filed a suit asking for that rental money and additional special damages for things like marketing, building and waste management, cleaning and removing Qoola’s fixtures from the space, as well as re-advertising and re-leasing the now-vacated space. They are also asking for all “costs, expenses and legal fees incurred by the Sub-lessor in enforcing this lease.”

Where it all goes sour

As the amended notice of civil claim notes, Qoola never actually signed the “sublease” in 2015. Instead, the terms were “set out in writing and accepted by both parties.” In their claim, the AMS argued that Qoola accepted the terms “by virtue,” and nonetheless retained enough benefit from the sublease that the money owed should still stand.

Qoola must submit a response to the AMS by January 30, which would be within the legal deadline of 21 days from the notice’s filing date.

The AMS declined to comment other than confirming that they are “in ongoing litigation to recover monies owed to us” and that they have been in contact with Qoola. The space that Qoola occupied is currently under renovation and an RBC is slotted to go in.

Qoola could not be reached in time for publishing.

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