El Cajon Brewing Company, Chapter 11

I also know the bankruptcy attorney for El Cajon Brewing Company. Call me crazy, but I do like the beer and food there too.

 

unlike their deep-fried burger, zucchini, or mac n cheese balls, the drama makes me come back for a second helping...

 

Somebody local get an expedition to mythical mopping creature already, I'm not about to drive the 15 miles out there just to prove it exists.

 

^ creepy.

 

It's Krispy, not creepy.

 

I haven't seen her yet and I think I'm the FourSquare mayor there.

 

Probably because she seems to have been the only person involved that was smart enough to punch out early from what has become a flaming wreck.

 

I checked the court's docket and there's a hearing on Friday. The landlord is asking the just to lift the automatic stay and continue the eviction lawsuit. It makes for an interesting read and it does sound like they are doing a number of things to make the business profitable, including ramping up to sell their own brews to local restaurants and bars.

The behind-the-scenes drama keeps rearing its ugly head though. They are alleging that the disgruntled brother is working with the landlord to get them kicked out so the landlord's family can take over the restaurant. I couldn't make this stuff up if I tried.

 

Ha, awesome. When you say 'evict' does that mean the owner takes everything that isn't bolted down?

What happens to the brewhouse?

 

Wow, that's a lot of drama. Need to get some schwag to add to my defunct brewery collection.

Im new but a crazy read.

 

Well, keep in mind that it is still early in the case and I doubt the bankruptcy judge would grant the motion at this point. If the owners can come up with some good faith money, the just might let them proceed with their plan of reorganization.

With respect to the eviction process, owners of ECBC could leave with stuff that isn't "bolted down". Once something becomes attached to land, it is generally called a "fixture". If someone is evicted from a house, they can take their appliance like the washer and dryer, but the couldn't take the furnace or the water hearer.

The brewing equipment looks like it would be a "fixture" that the landlord would get to keep. The likelihood of that happening are pretty remote right now as I see things.

 

No, FFE (Furniture, Fixtures and Equipment) is not owned by the landlord. If the equipment was financed, there will be a lien on them. They will be removed by the lienholder. That is why you see so many Used Restaurant Equipment stores. If they were paid for, the brewer can take them. Small restaurants go belly up all the time. The tenant improvements have to stay but not furniture ,fixtures or equipment.

Brewing equipment is selling for a premium right now so they wouldn't have trouble getting rid of it.

 

Wrong. In most cases, the landlords don't want the fixtures of a prior business because they are usually trying to get the premises ready for a new occupant that is probably going to be a different type of business. I believe the prior occupant was either a Hollywood or Blockbuster video and not of their fixtures would be of use to a restaurant.

The fixtures might have a lien on them that is valid as between the lien holder and the owners of ECBC, but the landlord's right would supecede those.

 

Brewing equipment is not part of the structure. There is no way that the landlord has any claim to it (unless he provided financing).

Landlords are at the bottom of the totem pole in terms of creditors.

 

Legally, a fixture is part of the structure. So as far as the landlord being at the bottom of the totem pole, we can agree to disagree.

 

The ECBC is still operating today, correct? If the owners of ECBC decided to strip the building of the brewing equipment tonight and leave town with it, would the Landlord be able to call the cops tomorrow and charge them with theft?

 

Can we get back to the Meadows brothers taking potshots at each other in a public forum? That was way more interesting than a legal argument about what may or may not happen in six months...

 

Criminal prosecutions relating to landlord/tenant disputes are extremely rare. However, yes, it is theoretically possibly to bring criminal charges if the owners of ECBC did strip the brewing equipment and take off. I doubt very seriously that District Attorney's office or El Cajon PD would be too interesting in pursuing the matter, but it is possible.

 

I'll grant you that. People don't realize how boring most court proceedings actually are.

One of the Meadows brothers did find me on Facebook and offer to show his proof. No thanks...I'm not taking sides on this one.

 

Learning a lot about real estate. Do they even have beer on tap?