By Kevin Haas
Rock River Current
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ROCKFORD — A lawsuit that alleges Magpie restaurant was unjustly forced out of its home on South Main Street is slated to move forward next week, bringing the matter to trial more than six years after a destructive fire at the vacant furniture building next door.
The lawsuit was filed Oct. 10, 2017, alleging that former landlords Sam and Linda Pirello breached a lease that gave Magpie first right of refusal to purchase 307 S. Main St. and instead transferred the building to an UEP Investments 2, an LLC connected to developer Urban Equity Properties. The suit also claims that UEP Investments 2 denied Magpie from removing some of the equipment from the building after it was forced to move to a new location.
Magpie is now at 126 N. Madison St. in a two-level former farrier shop near Rockford City Market.
A final pretrial conference is scheduled for Monday afternoon in front of Judge Lisa Fabiano before the bench trial would proceed at 1:30 p.m. Tuesday.
The lawsuit stems from a fire that destroyed the former Hanley Furniture building on June 25, 2017, at the corner of South Main and Chestnut streets in downtown.
At issue is whether the fire caused more than 40% damage to Magpie’s space, which, along with other conditions, would trigger the Pirellos ability to break the lease. The other conditions include giving proper notice of 45 days and the landlord electing not to rebuild, the lawsuit states.
Magpie contends those conditions were not met, and that there was no smoke or fire damage to its property, according to court documents.
“We were abruptly forced out of business on June 25, 2017, the day of the Hanley building fire. We had to relocate our business, rehabilitate and build-out a second historic building in downtown Rockford, and start our business from scratch a second time,” Stephanie Caltagerone, president of 3 Magpies Inc., which operates Magpie, said in a statement. “The forced closure had a devastating financial effect on our business, not to mention our employees. We are looking forward to finally getting our day in court.”
Urban Equity Properties and attorney Thomas Lester, who represents the Pirellos, declined to comment on the pending litigation.
The building that housed Magpie later was home to Sister’s on Main, which opened in 2018, and is now Ambiance Cuisine Cocktails & Catering, which opened in April 2023. The Hanley building was demolished and the space is now home to Urban Equity Properties’ lofts at 301 S. Main St.
Magpie alleges that UEP Investments 2 did not allow it to collect all of its property from its former building, namely the kitchen hood, sinks and other fixtures. Those items are worth more than $34,000, according to court documents. Urban Equity contends in court documents those are part of the property because they are permanently attached. Magpie, meanwhile, says the items belonged to the restaurant under the terms of its lease.
Magpie is seeking replevin, meaning the seized property or its value would be returned to the restaurateurs if the lawsuit is successful. It’s also seeking compensation for the breach of contract and forced relocation. The total compensation has not been specified in court documents.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas