If followed NBCs reality television show The Resturant, you know that the series ended with a battle over control of Rocco DiSpiritos 22nd Street restaurant and his partner and investors. China Grill Management has stated that they wish to sell their fifty percent stake in the restaurant to recoup some of their money. A court order currently prevents DiSpirito from entering Roccos 22nd Street and the investors wish a court-appointed receiver to take over management. The main contention between DiSpirito and the investors is whether DiSpirito owns a 50 percent stake at all.
The investors, led by Jeffrey Chodorow, have sued DiSpirito over alleged mismanagement and financial losses at Rocco's. Kaiser said the lost money is the main reason Chodorow wants to sell.
[At the states Supreme Court,] DiSpirito's lawyer, Steven Hayes, argued against selling the restaurant, saying it had made a "substantial profit" for two of the past three months. In May, he said, the restaurant cleared $100,000.
"The restaurant, with Rocco's involvement, can be turned around and made profitable," Hayes said.
Chodorow took the witness stand and, questioned by Kaiser, contradicted other witnesses who said DiSpirito understood that he would be a 50 percent owner of Rocco's.
"Did you ever agree that Rocco would have a 50 percent ownership in the entity that owned Rocco's 22nd Street?" Kaiser asked him.
"No," replied Chodorow, who said his investor group put $4.7 million into Rocco's.
Hayes noted that the restaurant's liquor license application and other business documents name DiSpirito as half owner of the restaurant.
Christopher
Portland, OR
November 2002
JUL 27, 2004 04:00 AM