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Cartier Files $40M Lawsuit Against Saks
Oct 7, 2018 8:05 AM
By Rapaport News
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RAPAPORT... Saks Fifth Avenue illegally ordered Cartier to vacate a
prime location inside its famous New York department store, according to a $40
million lawsuit Cartier filed last week.
The case revolves around a lease agreement that gave Cartier
use of space inside Saks’s site on the corner of Fifth Avenue and 49th Street.
Saks renovated the building earlier this year, and assured the tenant the works
would not affect its lease, Cartier alleged in the October 3 complaint. Despite
that, the landlord subsequently terminated the lease, the lawsuit claims.
Cartier specifically selected the site for its excellent location,
and invested in renovating the space to suit its needs, the New York State
Supreme Court filing states. It renewed the lease for five years in 2016.
Saks began remodeling the store this year, a move it had
been planning for a long time. The renovations created “substantial challenges
for Cartier,” including “significant dust and construction debris,” requiring much
cleanup work by Cartier employees, which had an adverse effect on their health,
the lawsuit alleged. The process also led to reduced customer traffic for
Cartier, resulting in “significant damages,” it stated.
Prior to the remodeling, senior executives at Saks
“repeatedly and consistently” assured Cartier it would respect the lease during
the works and not displace the jeweler, according to the filing. However, on
August 14, Saks sent a letter to Cartier terminating its lease agreement and
requiring it to vacate the premises by October 13. Saks failed to find Cartier
an acceptable alternative location, and promised the Cartier spot to another
competing luxury brand following the completing of the renovations, Cartier
said.
“Saks’s actions…were undertaken in bad faith, for the purpose
of harassing Cartier and interfering with its ability to operate the Cartier department
in the Cartier location, and constitute a breach of the covenant of good faith
and fair dealing,” Cartier said.
Cartier claims Saks’s actions caused it more than $40 million in damages. The jeweler is seeking that amount from Saks, and has asked the court to stop the department store from terminating the
lease, according to the filing.
Saks had not responded to a request for comment at press time.
Image: Saks Fifth Avenue. (Bishonen)
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Tags:
Cartier, lawsuit, New York State Supreme Court, Rapaport News, Saks Fifth Avenue
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