Dave & Buster’s sues to block redevelopment at White Flint Mall

Dave & Buster’s Inc. is asking a federal judge to enforce its lease at White Flint Mall as the shopping center plans to undergo a massive redevelopment.

The restaurant chain alleges the redevelopment violates its lease, which prohibits any renovations that interfere with Dave & Buster’s operations, according to the complaint filed in U.S. District Court in Baltimore.

“If the Defendant proceeds with its redevelopment in a manner which violates the Lease, the good will, reputation and existing customer base that D&B has developed in the community over the last 18 years will be irreparably harmed,” Dave & Buster’s alleges. The expansion of the North Bethesda shopping center also will not be completed in the 18 months allowed for such construction under Dave & Buster’s lease, according to the lawsuit filed Thursday.

Lerner Enterprises and The Tower Cos., which own and operate White Flint Mall LLLP, have proposed converting the mall into a mixed-use town center.

The mall’s owners also have vacillated between wanting Dave & Buster’s to be part of the redevelopment to, most recently, ordering it to vacate its property by Nov. 30.

Dave & Buster’s has been at White Flint since 1995 and is entitled to stay at the site until 2032, according to terms of the lease, the lawsuit states.

In 2006, White Flint alleged the restaurant violated its lease by acquiring and rebranding Jillian’s at Arundel Mills Mall in Hanover, about 30 miles away. But White Flint did not take any further action until 2012, after it submitted its redevelopment plans to Montgomery County, the lawsuit states.

In an October 2012 letter to Dave & Buster’s, lawyers for White Flint said the lease would be terminated at the end of the year, according to the lawsuit. But the two sides continued talking about a variety of topics, including Dave & Buster’s becoming part of the redeveloped White Flint or moving to another shopping center, according to the lawsuit.

The two sides met this August, with representatives from Dave & Buster’s raising a number of issues, including staying in the redeveloped shopping center and compensation to the restaurant for any damages incurred by terminating the lease, the complaint says.

Last month, White Flint “again changed course,” claiming Dave & Buster’s defaulted on its obligations and ordering the restaurant to vacate by the end of November.

Edward S. Scheidman III, Dave & Buster’s lawyer and a partner at DLA Piper US LLP in Washington, did not respond to requests for comment.

Messages left with lawyers at Lerner Enterprises, the mall’s managing agent, were not returned.

Lord & Taylor, too

Dave & Buster’s lawsuit is the second filed by one of the mall’s larger tenants over the redevelopment plans. Lord & Taylor, which has been at the mall for more than 35 years, filed suit in July to halt the redevelopment. White Flint then countersued for more than $1 billion in damages.

A settlement conference in the Lord & Taylor action was held last week, according to court records.