A Washington state appellate court panel here has reversed a Spokane County Superior Court ruling that had favored the owner of the Crescent Building in downtown Spokane in a dispute with the tenant owner of the former Daiquiri Factory bar.

The bar brought on publicity and sparked controversy here by naming one of its drinks “Date Grape Kool-Aid.” Critics contended it improperly spoofed the serious issue of sexual assault.

The appellate court panel agreed with bar owner Jamie Pendleton’s contention that FPA Crescent Associates LLC, owner of the building at 707 W. Main, hadn’t provided him adequate notice, as required under state law, to pay delinquent amounts before evicting him. It ordered that the case be sent back to Superior Court for further proceedings.

FPA had leased the bar space to Jamie’s LLC, owned by Jamie Pendleton, who operated the bar and personally guaranteed the lease, court records say. 

In June of last year, the Spokane County Sheriff’s Department executed a writ of restitution authorized by the trial court. A locksmith opened the doors and replaced the locks, allowing FPA to take control of the bar’s former space. The trial court eventually granted FPA’s motion for summary judgment and awarded $21,200 in damages prior to lease termination and $33,300 in attorney’s fees, court documents say.

In its 3-0 ruling, the appeals court said, “This case presents the issue of whether a landlord may bypass the notice and right to cure provision of an RCW by declaring a tenant in default for nonpayment of rent, then terminating the tenancy, and then arguing that the tenant is a holdover tenant unlawfully detaining under another RCW. We answer, ‘no.’ ’’

“We reverse the trial court’s grant of summary judgement to FPA, hold that Pendleton was not guilty of unlawful detainer, and dismiss FPA’s unlawful detainer action against Pendleton,” the decision said.

FPA didn’t give proper notice under the law, and didn’t give Pendleton notice to pay delinquent rent or to surrender the premises, the appellate panel said.

The lease started Feb. 1, 2014, and provided an expiration date of midnight, July 31, 2021. The lease required payment of monthly base rent and additional rent. Base rent of $4,750 per month was abated for the first six months, unless Pendleton defaulted, in which case abated rent was immediately due in full, the appeals court said.

Court records say the lease defined default as including any failure by Pendleton to pay any rent when due. Pendleton failed to pay an additional rent charge for the month of May 2014. On May 7, FPA told Pendleton $2,200 was due on the account. On May 9, FPA served Pendleton with a Notice of Termination of Lease for failure to pay rent and demanded Pendleton immediately surrender the premises the same day, court documents say.

On May 10, Pendleton sent payment to FPA via certified mail, court documents say.