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GRADY COUNTY • CJ-2026-00077

Victor Valley Mortuary, Inc. v. Canadian River Brewing Co., an Oklahoma for profit business corporation d/b/a Canadian River Brewing, LLC

Filed: Mar 2, 2026
Type: CJ

What's This Case About?

Let’s be honest: when you hear “Victor Valley Mortuary,” you don’t immediately think “commercial real estate mogul.” But here we are, in Grady County, Oklahoma, where a mortuary based in California is suing a craft brewery for nearly $17,000 in unpaid rent — and demanding a jury trial like it’s Real Housewives: Chickasha Edition. This isn’t just a landlord-tenant dispute. This is a full-blown beer versus bereavement showdown, and the stakes are as dry as last call at a brewpub that forgot to pay its bills.

So who are these people? On one side, we’ve got Victor Valley Mortuary, Inc., a funeral home incorporated in Oklahoma but headquartered in Apple Valley, California — yes, the same company that presumably helps families say goodbye to their loved ones. Somehow, between embalming and eulogies, they also own commercial property in Chickasha, Oklahoma. Maybe it’s a side hustle. Maybe it’s an investment. Or maybe someone left them a building in a will and they just never got around to selling it. Either way, they’re now playing landlord to a brewery — which, let’s be real, is about as tonally mismatched as a wake at Wacken Open Air.

On the other side: Canadian River Brewing Co., a local Oklahoma business operating under the name Canadian River Brewing, LLC, run by Nigel and Holly Dunham. They’re not some faceless corporation — they’re small business owners trying to pour pints and build community vibes in downtown Chickasha. And for a while, things seemed to be flowing smoothly. Back in February 2019, they signed a commercial lease with the mortuary’s affiliate (Chickasha Today, LLC — more on that twist later) to rent part of a building at 113 W. Chickasha Ave. The plan? Brew beer, serve customers, maybe host trivia nights. Not exactly the stuff of courtroom drama — until the rent started bouncing like a bad check.

Because here’s what happened: according to the filing, the brewery took possession of the space on August 1, 2019, and everything was hunky-dory for a few years. Rent started November 1, 2019, and climbed gradually from $3,384 a month to $3,663 by 2023. But then, somewhere between hops and happy hours, the payments stopped. Not all at once — this wasn’t a dramatic eviction-level cutoff — but like a slow leak in a keg line, the money just… dribbled out.

By December 2023, the first domino fell: a bounced check for $1,800, slapped with a $50 fee because apparently even landlords have feelings about insufficient funds. Then came the unpaid rent invoices — February, March, April, May 2024 — each for $4,029.30. Add in that bounced check and the fee, and boom: $16,882.60 in arrears. The mortuary sent a polite but firm letter in January 2025 (signed by Deidra Hitt, controller and presumably not related to the dearly departed), demanding payment by February 10 or else. No dice. Silence. Crickets. Just the sound of unpaid invoices gathering digital dust.

Fast-forward to March 2026 — over a year later — and Victor Valley Mortuary files a lawsuit. Not just for breach of contract (which makes sense — you signed a lease, you didn’t pay, game over), but also for unjust enrichment, which is legalese for “you got something valuable and didn’t pay for it, so cough it up.” The argument? Canadian River Brewing lived rent-free for five months, used the space to run a business, probably sold thousands of dollars’ worth of craft beer, and now the mortuary wants its cut. And honestly? Fair. If you’re running a taproom in someone else’s building, you don’t get to treat it like a pop-up art installation with no financial consequences.

Now, why are they in court? Two claims. First: Breach of Contract — meaning the brewery failed to do what the lease said they’d do: pay rent on time. Second: Unjust Enrichment — a backup plan in case the contract somehow doesn’t hold up, arguing that even if the lease is messy, the brewery still benefited from using the space and shouldn’t profit off someone else’s property without paying. It’s like if you borrowed your neighbor’s lawnmower, mowed ten lawns for cash, and then said, “Oops, I forgot to return it.” You can’t keep the money and pretend the tool was free.

And what do they want? $16,882.60, plus interest at 12% per year (thanks to a clause in the lease), attorney fees, court costs, and any other relief the judge feels like tossing in. Is that a lot? For a small brewery operating on thin margins, yes — that’s several months of utilities, ingredients, or employee wages. For a property owner, it’s not a fortune, but it’s also not pocket change. It’s the kind of sum that makes suing worth the hassle, especially when you’ve already sent a warning letter and gotten nothing but radio silence. And get this — the mortuary is demanding a jury trial. A jury. Over commercial rent. That’s like calling in the SWAT team to recover a library book.

Here’s the twist, though: the original lease was between Canadian River Brewing and Chickasha Today, LLC, not Victor Valley Mortuary. But buried in the petition is a line saying the mortuary “is the owner” of the property. So either Victor Valley Mortuary bought it from Chickasha Today, or they’re the same entity in disguise, or someone dropped the corporate paperwork ball. Either way, they’re claiming standing — meaning they say they’re the rightful landlord now — and they’ve brought the fight under their name. We may never know how a California mortuary ended up owning a Chickasha brewery space, but we do know they’re not messing around.

Our take? The most absurd part isn’t that a mortuary is suing a brewery — capitalism is wild, and portfolios are weird. It’s that this went on for over a year with no resolution before ending up in court. Five months of unpaid rent isn’t a clerical error. It’s a pattern. And yet, no mediation, no payment plan, no “hey, we’re struggling, can we work something out?” Just silence, then litigation. And now, a jury — ordinary citizens — will potentially decide whether a brewery owes a mortuary money for space it used to pour IPAs. Imagine the voir dire: “Can you be impartial in a case involving hops and late fees?”

We’re not rooting for the mortuary to get rich off this. We’re not rooting for the brewery to dodge responsibility. But we are rooting for someone — anyone — to pick up the phone and talk like adults. Because at the end of the day, this isn’t about legal technicalities or interest clauses. It’s about two businesses that entered a deal, one of them stopped paying, and now they’re letting the court system do what a 15-minute conversation could’ve solved. And honestly? That’s the real tragedy here — not the money, but the lack of basic human communication. In a world where we can track a beer delivery in real time, we still can’t seem to say, “Hey, we’re behind on rent. Can we fix this?”

Stay tuned, Grady County. Because next up: The Counterclaim Heard ‘Round the Taproom?

Case Overview

Jury Trial Petition
Jurisdiction
District Court of Grady County, Oklahoma
Relief Sought
$16,883 Monetary
Claims
# Cause of Action Description
1 Breach of Contract Failure to pay rent and other damages
2 Unjust Enrichment Receipt of benefits without just compensation

Petition Text

5,737 words
IN THE DISTRICT COURT OF GRADY COUNTY STATE OF OKLAHOMA VICTOR VALLEY MORTUARY, INC, Plaintiff, v. CANADIAN RIVER BREWING CO., an Oklahoma for profit business corporation d/b/a CANADIAN RIVER BREWING, LLC Defendant. Case No. CJ-2026-371 FILED IN DISTRICT COURT Grady County, Oklahoma MAR 02 2026 MICA HACKNEY, Court Clerk By: Deputy PETITION FOR BREACH OF CONTRACT Plaintiff Victor Valley Mortuary, Inc. appears by and through its attorneys of record Christopher C. Lind and Hannah Bigbee of Allen, Mills-Mettry, Lind, Simpson, and brings these claims against the above-named Defendant as follows: OVERVIEW 1. On or about February 12, 2019, Plaintiff Victor Valley Mortuary, Inc. (hereinafter, "VVM"), entered into a written agreement with Defendant Canadian River Brewing Co., d/b/a Canadian River Brewing, LLC (hereinafter "CRB"), to lease certain real property (the “Subject Property”) for commercial purposes. 2. The Subject Property is and was at all times relevant hereto, owned by VVM. 3. VVM performed all if its contractual obligations and possession of the Subject Property was delivered to CRB on August 1, 2019. 4. CRB failed to pay rent in accordance with its agreement with VVM. 5. Plaintiff VVM has performed all conditions precedent to recover under its agreement with Defendant CRB, and Plaintiff has not excused Defendant’s breach of the same. 6. As a result of Defendant’s breach, Plaintiff has sustained damages in the sum of not less than $16,882.60 in addition to interest accruing at 12%, per Paragraph 24 of the Commercial Real Estate Lease Agreement ("Agreement"), attached hereto as Exhibit A, attorney fees, and costs. PARTIES 7. Plaintiff VVM incorporates by reference the preceding factual allegations. 8. VVM is a limited liability company incorporated and registered in the state of Oklahoma with its headquarters located in the state of California. 9. Defendant CRB is a limited liability company registered in the state of Oklahoma operating in Grady County, Oklahoma. 10. Plaintiff VVM is asserting in personam action for breach of contract and alternative equitable remedies. JURISDICTION AND VENUE 11. Plaintiff VVM incorporates by reference the preceding factual allegations. 12. Pursuant to 12 O.S. § 2004(F) this Court has proper subject matter jurisdiction. 13. This Court has personal jurisdiction over the parties because (1) the contract was entered into in Grady County, Oklahoma, and (2) Defendant is a resident of Grady County. 14. Venue is proper in this County pursuant to 12 O.S. § 134 because (1) the cause of action arose in Grady County, (2) the members of CRB reside in Grady County and (3) CRB’s principal place of business is in Grady County. FIRST CAUSE OF ACTION – BREACH OF CONTRACT 15. Plaintiff VVM incorporates by reference the preceding factual allegations. 18. Defendant CRB has breached its obligation to pay VVM pursuant to its agreement with Plaintiff. 19. As a result of Defendant CRB’s breach, VVM has suffered actual damages in the amount of $16,882.60 exclusive of interest, costs, and attorney’s fees. WHEREFORE, Plaintiff VVM requests judgment be granted in the amount of $16,882.60, together with pre and post-judgment interest at the rate set out in the Lease, costs, attorney’s fees, and any and all other relief deemed just and proper. SECOND CAUSE OF ACTION - UNJUST ENRICHMENT 20. Plaintiff VVM incorporates by reference the preceding factual allegations. 21. Defendant CRB has received benefits attributable to VVM. 22. Defendant CRB knowingly accepted the commercial space furnished by Plaintiff VVM. 23. Defendant CRB knew that VVM was not acting as a volunteer in furnishing the space. 24. VVM has clean hands in this matter, and it would be grossly unfair for Defendant CRB to refuse their monetary obligations to VVM. 25. Said Defendants’ receipt of benefits from VVM’s property without just compensation has resulted in unjust enrichment to which VVM is entitled a remedy. WHEREFORE, Plaintiff VVM requests judgment be granted in the amount of $16,882.60, together with pre and post-judgment interest at 12%, costs, attorney’s fees, and any and all other relief deemed just and proper. ACCORDINGLY, PREMISES CONSIDERED, Plaintiff by its Petition demands judgment against Defendants as follows: A. Fix and award damages of $16,882.60 in principal; B. Fix and award consequential damages; C. Fix and award pre- and post-judgment interest; D. Award reasonable attorneys’ fees as allowed by 12 O.S. § 936. E. Award any and all such further relief as may be just and equitable. Respectfully Submitted, Christopher C. Lind, OBA #31402 Hannah Bigbee, OBA #36577 ALLEN | MILLS-METTRY | LIND | SIMPSON 108 N. 2nd Avenue Purcell, Oklahoma 73080 Telephone: 405-442-0483 [email protected] [email protected] ATTORNEYS FOR PLAINTIFF JURY TRIAL DEMANDED ATTORNEY’S LIEN CLAIMED VERIFICATION Pursuant to 12 O.S. §426 I, Chet Hitt, being of lawful age, state that the above and foregoing is true and correct to the best of my knowledge, information, and belief under penalty of perjury under the law of the State of Oklahoma. Signed on 2/25/2026 ________________ in the city of Chickasha _______, State of Oklahoma __________. Chet Hitt, Petitioner eSignature Details Signer ID: YNnHRW9zioVaPfdNYmawdNhE Signed by: Chet Hitt Sent to email: [email protected] IP Address: 74.197.220.4 Signed at: Feb 25 2026, 11:35 am CST Victor Valley Mortuary Inc. 22092 Hwy 18 Apple Valley, CA 92307 January 10, 2025 Canadian River Brewing Co. Attn: Nigel & Holly Dunham 1846 Hwy 81 Chickasha, OK.73018 RE: Lease Past Due Dear Nigel and Holly: This letter is regarding the past due lease amount for location 121 W Chickasha between Victor Valley Mortuary Inc and Canadian River Brewing Co. Total amount past due is $16,882.60 this is an attempt to collect the debt owed. Please contact Chet Hitt or me to resolve or make payment plans. We must be notified by February 10th 2025 to avoid collections. Our contact info is as follows: Chet Hitt [email protected] 760-885-8513 Deidra Hitt [email protected] 760-403-5328 Sincerely, [Signature] Deidra Hitt Controller Victor Valley Mortuary, Inc. Customer Open Balance All Transactions <table> <tr> <th>Type</th> <th>Date</th> <th>Num</th> <th>Memo</th> <th>Due Date</th> <th>Open Balance</th> <th>Amount</th> </tr> <tr> <td colspan="7" style="text-align:left"><b>Canadian River Brewing Co.</b></td> </tr> <tr> <td>General Journal</td> <td>11/30/2023</td> <td></td> <td>Bounced Check# 1523</td> <td></td> <td>349.10</td> <td>1,800.00</td> </tr> <tr> <td>Invoice</td> <td>12/01/2023</td> <td>Dec 2023</td> <td>December 2023 Rent</td> <td>12/01/2023</td> <td>366.30</td> <td>4,029.30</td> </tr> <tr> <td>Invoice</td> <td>12/01/2023</td> <td>Dec 2023 Bo</td> <td>Bounced Check# 1523</td> <td>12/01/2023</td> <td>50.00</td> <td>50.00</td> </tr> <tr> <td>Invoice</td> <td>02/01/2024</td> <td>Feb 2024</td> <td>February 2024 Rent</td> <td>02/01/2024</td> <td>4,029.30</td> <td>4,029.30</td> </tr> <tr> <td>Invoice</td> <td>03/01/2024</td> <td>Mar 2024</td> <td>March 2024 Rent</td> <td>03/01/2024</td> <td>4,029.30</td> <td>4,029.30</td> </tr> <tr> <td>Invoice</td> <td>04/01/2024</td> <td>Apr 2024</td> <td>April 2024 Rent</td> <td>04/01/2024</td> <td>4,029.30</td> <td>4,029.30</td> </tr> <tr> <td>Invoice</td> <td>05/01/2024</td> <td>May 2024</td> <td>May 2024 Rent</td> <td>05/01/2024</td> <td>4,029.30</td> <td>4,029.30</td> </tr> <tr> <td colspan="4"><b>Total Canadian River Brewing Co.</b></td> <td></td> <td><b>16,882.60</b></td> <td><b>21,996.50</b></td> </tr> <tr> <td colspan="7"><b>TOTAL</b></td> <td><b>16,882.60</b></td> <td><b>21,996.50</b></td> </tr> </table> COMMERCIAL REAL ESTATE LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this 12th day of February, 2019, by and between CHICKASHA TODAY, LLC, an Oklahoma limited liability company, hereinafter called “LANDLORD,” and Canadian River Brewing, an Oklahoma limited liability company, hereinafter called “TENANT.” For and in consideration of the covenants and agreements herein provided, LANDLORD does hereby lease to TENANT certain real property situated in Grady County, State of Oklahoma, which contains approximately 7,942 square feet in total; located at 113 W. Chickasha Ave, Chickasha, OK 73018, hereinafter called “Premises.” LANDLORD agrees to rent the Northern portion of the building as described in Exhibit B- Floor Plan and hereinafter referred to as “Phase I Area” and “Phase II Area” will be optional rentable space available to TENANT in the future if elected by TENANT. It is understood that the Phase II area will be occupied by LANDLORD during this initial period and LANDLORD will grant emergency egress through and across this space at all times for TENANT and other occupants on the premises.. LANDLORD agrees to make available Phase II area for possession with a 60 day written notice to LANDLORD. TENANT is not obligated to choose to occupy Phase II area, however, upon LANDLORDs receipt of the written notice accepting the Phase II area, this area will be bound to this lease per the rent schedule set forth below in paragraph 2 as one complete building for the remainder of the term. 1. TERM. This lease shall be for a term of sixty (63) months, beginning on August 1, 2019 and ending on October 31, 2024 ("Lease Term"). LANDLORD intends to deliver the property to TENANT on August 1, 2019 however rent payments shall commence on November 1, 2019 hereinafter called "Rent Commencement.". 2. RENT. TENANT agrees to pay LANDLORD as rental for above described property the sum below, payable on or before the first day of each month during the term of this lease, payable to LANDLORD with a mailing address of 302 Chickasha Ave, Chickasha, OK 73018 or such other place as LANDLORD may designate by written notice to TENANT: Rent Schedule for Phase I Areas only: • $3,384/month Year 1 11/1/19 - 11/1/20 • $3,452/month Year 2 11/1/20 - 11/1/21 • $3,521/month Year 3 11/1/21 - 11/1/22 • $3,591/month Year 4 11/1/22 - 11/1/23 • $3,663/month Year 5 11/1/23 - 11/1/24 Additional Rent Schedule for Phase II Areas only: • $1,916/month Year 1 • $1,954/month Year 2 • $1,993/month Year 3 • $2,033/month Year 4 • $2,074/month Year 5 RENEWAL OPTION. So long as TENANT is not in default with any provisions of this Lease agreement throughout the Lease Term, TENANT shall have one five (5) year renewal option under the same terms and conditions of this Lease, except that the Rent shall increase 2% per year from the previous year, which must be exercised in writing by TENANT at least one hundred twenty (120) days prior to the expiration of the Lease Term. LATE CHARGE. A late charge equal to ten percent (10%) of the monthly rental payment shall be assessed on any such payment made after the 15th day of the month in which said payment is due. Late charges shall be considered an additional rental and if not paid as required shall constitute a default by TENANT. There shall be a fifty ($50.00) dollar fee for any returned checks. 3. USE. TENANT agrees to take good and reasonable care of the Premises for any legal and lawful use as a retail establishment excepting such normal wear and tear associated with the legal and lawful use of commercial property. 4. LANDLORD IMPROVEMENTS AND MAINTENANCE. LANDLORD, at LANDLORD'S expense, shall make improvements to the Premises prior to Rent Commencement: see attached Exhibit A and shall at all times maintain in good order, condition and repair any and all mechanical, electrical, and plumbing systems installed by LANDLORD, except for day to day maintenance such as changing filters and unclogging plumbing lines. LANDLORD shall at all times repair and maintain the structural portion of the premises, including exterior walls and roof, unless such maintenance or repair is caused in whole or in part by the neglect, fault or omission of TENANT, its agents, employees or invitees, in which event TENANT shall pay to LANDLORD the cost of such maintenance and repair. LANDLORD shall have no obligation to repair until a reasonable time after the receipt by LANDLORD of written notice of the need for repairs. Unless otherwise specifically provided in this lease, there shall be no abatement of rent and no liability of LANDLORD by reason of any injury to or interference with TENANT'S business arising from the making of any repairs, alterations or improvements in or to any portion of the premises. 5. TENANT IMPROVEMENTS & MAINTENANCE. TENANT shall maintain in good order, condition and repair the interior of the Premises, and the improvements and equipment installed by TENANT in the Premises, and shall replace all broken glass, including plate glass and exterior show windows, and repair any broken doors, damaged by TENANT, its agents, employees or invitees. TENANT shall be required to maintain sidewalk flower beds with seasonal plants free of weeds. Sidewalks and driveways shall be free of debris and trash and provide rat-proof refuse receptacles. TENANT, at TENANT'S expense, shall be responsible for any other improvements including but not limited to: alterations, signs, colors, materials and lighting, accent lighting, provided, however, plans and specifications for such improvements must be approved by LANDLORD in advance of work being performed, such consent not to be unreasonably delayed or withheld. LANDLORD'S approval of such plans and specifications shall not constitute evidence of compliance with any applicable local or state governmental code or regulation. In the event LANDLORD OR TENANT (the "Responsible Party") fails to maintain the Premises in good order, condition and repair, in compliance with their respective obligations herein, then the party claiming such failure (the "Claiming Party") shall give the Responsible Party written notice to do such acts as are reasonably required to maintain the Premises. In the event the Responsible Party fails promptly to commence such work or diligently prosecute the same to completion, the Claiming Party may, but is not obligated to, do such acts and expend such funds at the expense of the Responsible Party as are reasonably required to perform such work. Any amount so expended by the Claiming Party shall be paid by the Responsible Party within ten (10) days after demand with interest at five percent (5%) per annum from the date of such demand. LANDLORD shall have no liability to TENANT for any damage, inconvenience or interference with the use of the Premises by TENANT as a result of performing any such work or by reason of undertaking the repairs so long as such work or repairs are conducted reasonably with diligence. Upon the expiration or earlier termination of this Lease, TENANT shall surrender the Premises in good condition, ordinary wear and tear excepted. TENANT shall indemnify LANDLORD against any loss or liability resulting from delay by TENANT in so surrendering the Premises, including without limitation any claims made by any succeeding TENANT founded on such delay. 6. ALTERATION. TENANT shall not erect or place any signs or advertising on or visible from the exterior of the Premises, nor alter the exterior or make any alterations or additions to the Premises without LANDLORD'S prior written consent, which shall not be unreasonably withheld. All alterations, additions, and improvements made by TENANT to or upon the Premises, except signs, advertising, business equipment and furniture, shall at once when made or installed be deemed to have been attached to the freehold and to have become the property of LANDLORD; Any improvements, alterations, repairs, or maintenance will be performed in a workmanlike manner by qualified and licensed firms. TENANT further agrees not to allow any liens for non-payment to be placed on subject property; if any liens do appear, TENANT agrees to deposit sufficient funds with LANDLORD to satisfy said lien or judgment. 7. POSSESSION AND PERMITTED EXCEPTIONS. LANDLORD warrants that it has good title to the Premises. The lease and all of TENANT'S rights hereunder are subject to all the matters, restrictions and encumbrances of record (whether now existing or hereinafter arising). LANDLORD reserves to itself the right, from time to time, to grant, without the consent or joinder of TENANT, such easements, rights and dedications as LANDLORD deems necessary so long as they do not interfere with the TENANT's rights hereunder or use or occupancy of the Premises by the Tenant. Each party hereto affirms and states it has full right and authority to enter into this lease agreement. 8. TAXES & PROPERTY INSURANCE. During the term of this Lease, LANDLORD shall pay and discharge all ad valorem, special assessment, or other taxes levied or assessed against the leased Premises. Further, LANDLORD shall pay all property insurance premiums for full replacement cost value for the Premises. TENANT can opt to pay the above taxes and property insurance, if delinquent, but shall be promptly reimbursed by LANDLORD if TENANT elects to do so. 9. COMMENCEMENT. Notwithstanding said Rent Commencement date, if for any reason LANDLORD cannot deliver possession of the Premises to TENANT on said date, LANDLORD shall not be subject to any liability therefor, nor shall such failure affect the validity of the Lease or the obligations of TENANT hereunder or extend the term hereof, but in such case TENANT shall not be obligated to pay rent until possession of the Premises is tendered to TENANT; provided, however, that if LANDLORD shall not have delivered possession of the Premises within sixty (60) days from said commencement date, TENANT may, at TENANT'S option, by notice in writing to LANDLORD within ten (10) days thereafter, cancel this Lease, in which event the parties shall be discharged from all obligations hereunder. 10. SUBLEASE. The TENANT shall not assign or transfer this Lease or any interest therein nor sublet said Premises or any part thereof without the written consent of the LANDLORD; nor shall this Lease be assignable or transferable by operation of law or by any process or proceeding of any Court, or otherwise without the written consent of the LANDLORD. 11. SUBORDINATION. This lease and all rights of the TENANT hereunder at the option of the LANDLORD will be subjected and subordinate to all encumbrances so long as they do not interfere with the TENANT's rights hereunder or use or occupancy of the Premises by the TENANT. TENANT agrees to execute and deliver to LANDLORD from time to time within ten (30) days after written request by LANDLORD all instruments which might be required be LANDLORD to confirm such subordination. Notwithstanding the foregoing provisions, TENANT agrees that any Mortgagee will have the right at any time to subordinate any rights of such Mortgagee to the rights of the TENANT under this Lease on such terms and subject to such conditions as such Mortgagee deems appropriate in such Mortgagee's absolute discretion. 12. INSOLVENCY. In the event of attempted assignment of this Lease to creditors, or the institution of bankruptcy, corporate reorganization, trustee or receivership proceedings involving TENANT, shall forthwith and of themselves cancel and void this Lease, and possession of the Premises shall immediately pass to LANDLORD, at its option. If LANDLORD exercises its option to recover possession of the Premises upon the occurrence of one of such events, it shall not be held to have waived its cause of action against TENANT for its failure to perform fully the terms of this Lease prior to such event. 13. SALE BY LANDLORD. In the event LANDLORD transfers its interest in the building and such transfer is subject to this Lease Agreement, LANDLORD will thereby be released from any further obligation hereunder and TENANT agrees to look solely to the transferee for the performance of such obligations. The agreement of TENANT to attorn to the transferee of the LANDLORD will survive any termination of rights of the LANDLORD in the building and the TENANT agrees to execute and deliver to the transferee of the LANDLORD from time to time within ten (10) days after written request therefor all instruments which might be required by the LANDLORD to confirm such attornment. LANDLORD agrees to give TENANT first right of refusal to purchase the property in the event LANDLORD, at LANDLORD's sole discretion, decides to sell or transfer the property. 14. INDEMNITY. TENANT agrees to carry commercial general liability insurance covering the Premises and the business conducted therein, which insurance shall be in amount not less than $1,000,000.00 per each occurrence and $2,000,000 general aggregate. Such policies shall be for the benefit of LANDLORD and TENANT as their interests may appear, and TENANT shall furnish LANDLORD a certificate of said insurance upon the commencement of this Lease and shall provide a copy upon each subsequent year of the Lease. TENANT further agrees to indemnify LANDLORD from any and all damages to the contents of the portion of the building herein leased, and from any action, claim or injuries arising from the maintenance, operation or use by TENANT, its employees, customers or invitees of the Premises by any person, or for any condition existing on said Premises under the control of TENANT or which condition is the responsibility of TENANT. In any suit or action for damages arising from alleged negligence of TENANT in which LANDLORD is included as a defendant, TENANT will assume all the burdens, costs and expenses of the defense thereof, including attorney’s fees, and the cost of settlement or judgment obtained against LANDLORD by reason thereof. In any suit or action for damages arising from alleged negligence of LANDLORD in which TENANT is included as a defendant, LANDLORD will assume all the burdens, costs and expenses of the defense thereof, including attorney’s fees, and the cost of settlement or judgment obtained against TENANT by reason thereof. 15. CASUALTY. If the Premises are damaged by fire or other insured casualty, LANDLORD shall within ten (10) days notify TENANT in writing as to the number of days within which the Premises, with the exercise of reasonable diligence, can be made fit for occupancy ("Repair Period"). To the extent that the Repair Period does not exceed ninety (90) days, Landlord will diligently pursue the repair of damage to the Premises (excluding alterations, improvements and additions made by TENANT). In that event, this Lease shall continue in full force and effect, except that Rent shall be abated on a pro rata daily basis based on the portion of the Premises that TENANT cannot use during the Repair Period. If: (a) the Premises are damaged by fire or other insured casualty to the extent that the Repair Period exceeds ninety (90) days; or (b) the Premises are damaged to any extent by any casualty and the remainder of the Term is less than six (6) months, then Landlord may, at Landlord's option, diligently pursue the repair of damage to the Premises (excluding alterations, improvements and additions made by TENANT). If Landlord elects to repair the damage during the Repair Period, Rent will be abated on a pro-rata daily basis during the Repair Period, based on the portion of the Premises the TENANT cannot use during the Repair Period. If Landlord elects not to repair the damage during the Repair Period, this Lease will terminate effective on the date of termination set forth in the notice, and Rent will be abated on a pro-rata basis based on the portion of the Premises TENANT cannot use during the period from the date of the casualty to the date of termination of the Lease. Notwithstanding any other provision of this Lease, if the proceeds of LANDLORD'S insurance are insufficient to pay for the repair of any damage to the Premises, or if the casualty is of such a nature so as to not be insured under LANDLORD'S insurance, then Landlord will have the option to repair such damage or cancel this Lease as of the date of such casualty by written notice to TENANT. If a fire or other casualty is the result of the willful misconduct, negligence, or willful failure to act of TENANT, its agents, contractors, employees, or invitees, there will be no abatement of Rent as otherwise provided for in this Section 17. Notwithstanding any provision of this Lease to the contrary, LANDLORD shall not be liable to TENANT for any damage or losses to the TENANT that are occasioned by the damage to or destruction of the Premises or by the repair or restoration of the Premises. 16. DEFAULT. If TENANT vacates or abandons said Premises or defaults in the payment of the rent reserved or any installment thereof, or breaches any of the covenants herein, and if such default or breach continues for thirty (30) days after written notice thereof, LANDLORD may, at its option, terminate this Lease or without such termination enter said Premises, remove TENANT'S property therefrom, and re-let the same for the account of TENANT for such rent and upon such terms as may be satisfactory to LANDLORD, without such re-entry working a forfeiture of past or future rents to be paid or the covenants to be performed by TENANT during the full term hereof. In any event, TENANT shall pay any rent deficiency, each month thereafter, during the balance of the term hereof. 17. LIEN. All property of TENANT, in or upon said Premises, whether or not exempt from execution, shall be subject to a lien for payment of the rent reserved and for any damages arising from any breach by TENANT of any of the covenants herein. If default is made in the payment of any installment of the rent, or any part thereof, and if such default continues for thirty (30) days after written notice thereof to TENANT, LANDLORD may take possession of said property of TENANT, or any part thereof, and sell it at public or private sale, with or without auction, to the highest bidder for cash, and apply the proceeds of said sale first toward the cost of sale and then toward said debt or damages, any remainder to be paid to TENANT. In the event it becomes necessary for LANDLORD or TENANT to take legal action for the enforcement (the "Enforcing Party") of any obligation imposed upon the other party by this Lease (the "Obligated Party"), the Obligated Party will bear all of the costs and expenses of such action, including reasonable attorney's fees. 18. WAIVER AND NOTICE. Any assent, expressed or implied, by the non-breaching party to any breach of any covenant or condition herein shall operate as such only in the specific instance and shall not be an assent or waiver thereof generally or of any subsequent breach thereof. The various rights, powers, elections and remedies contained herein are cumulative and no one of them shall be exclusive of others or of any allowed law. No right shall be exhausted by being exercised on one or more occasions. Time is of the essence hereof. Where provision is made herein for notice of any kind, it shall be deemed sufficient, if such notice is to TENANT, if addressed to TENANT at the leased Premises; and if to LANDLORD, if addressed to LANDLORD at the address shown in Lease. Such notice shall be given by registered mail with postage prepaid. 19. SUITABILITY/AS-IS. TENANT acknowledges that neither LANDLORD nor any agent of LANDLORD had made any representation or warranty with respect to the Premises or the suitability of the Premises for the conduct of TENANT'S business, nor has LANDLORD agreed to undertake any modification, alteration or improvement to the Premises, except as provided in this Lease, the Premises shall otherwise be leased AS-IS, WHERE-IS. The taking of possession of the Premises by TENANT shall conclusively establish that the Premises were at such time in satisfactory condition unless within five (5) days after such date TENANT shall give LANDLORD written notice specifying in reasonable detail the respects in which the Premises or the building were not in satisfactory condition. By execution hereto, TENANT and LANDLORD acknowledge that they have investigated all representation of agents, and as such agents shall be relieved of all liability for future claims. 20. PROHIBITED USES. TENANT shall not use said Premises for any use other than as consistent with this lease without first obtaining the written consent of LANDLORD. TENANT shall promptly and continuously comply with all laws, orders, and regulations of the State, County, and City affecting the use, occupation, safety, and cleanliness of the Premises and the equipment of TENANT. 21. LEASING. LANDLORD may show the Premises to prospective TENANTS at any reasonable hour and post "For Lease" signage during the last one hundred twenty (120) days of the term hereof. This Lease shall not be deemed renewed except upon written agreement to that effect. TENANT agrees that it will without notice, deliver possession of said Premises to LANDLORD upon the expiration of the term hereof. In the event TENANT remains in possession of said Premises after the expiration of the Lease, without executing a new Lease, TENANT shall be deemed to occupy the Premises as a TENANT from month to month, subject to all the terms hereof insofar as they are applicable to such a tenancy. 22. CONDEMNATION. If during the term of this Lease more than forty percent (40%) of Premises should be taken by eminent domain or condemnation for public or quasi-public use, or by private purchase in lieu thereof, this Lease shall terminate upon the election of either party by giving written notice to the other party within sixty (60) days after the taking of possession by the condemning authority. All funds derived from condemnation proceeding shall be paid direct to LANDLORD, and TENANT hereby assigns its interest in any such award to LANDLORD; provided, however, LANDLORD shall have no interest in any award made to TENANT for loss of business, fixtures or moving if such a separate award is made to TENANT. LANDLORD and TENANT agree to cooperate to ensure any such award is appropriately allocated to LANDLORD and TENANT. 23. DAMAGE TO PROPERTY. TENANT shall bear all risks of damage to TENANT's equipment, fixtures, furnishings, inventory, and supplies located on and situated in said leased Premises and is responsible, in TENANT'S discretion, for providing insurance thereof for TENANT'S own protection and as a result thereof LANDLORD is relieved absolutely of any liability thereof, including, but not limited to, damages to any such property caused by gas, water, smoke, rain or snow, which may leak into, issue or form from any part of said building of which the leased Premises are a part, or from pipes or plumbing work of said buildings, or from any other places, unless such is the result of the willful misconduct of LANDLORD. 24. INTEREST ON PAST DUE OBLIGATION. Except as expressly herein provided, any amount not paid to either party by the other when due shall bear interest at twelve percent (12%) per annum from the due date. Payment of such interest shall not excuse or cure any default by the defaulting party under this Lease. 25. UTILITIES AND HVAC. TENANT agrees to pay for all water, gas, power and electric current and all other utilities supplied to the Premises. If there are any changes to the usage of the Phase II area that would increase electrical or water usage, LANDLORD, at LANDLORD'S expense will sub meter these services and pay for the utilities used by LANDLORD or other TENANTS. LANDLORD shall not be liable in damages or otherwise for any failure or interruption of any utility service being furnished to the Premises, unless such is the result of the willful misconduct or willful failure to act of LANDLORD and such failure or interruption shall not entitle TENANT to terminate this Lease. 26. TIME IS OF THE ESSENCE. Time is of the essence of this Lease and each provision. 27. BINDING EFFECT. The covenants, terms, conditions, and agreements herein contained shall extend to and be binding upon the respective heirs, trustees, successors, executors, administrators, and assigns of the parties. 28. COMPLETE AGREEMENT. The covenants and conditions herein contained, together with any exhibits and addendums attached, are the full and complete terms of this Lease agreement, and no alterations, amendments, or modifications of the same shall be binding, unless first reduced to writing and signed by both parties. LANDLORD: CHICKASHA TODAY, LLC By: ____________________________ Weston DeHart, Manager TENANT: Canadian River Brewing By: ____________________________ Nigel Dunham, Manager Exhibit A- Landlord Work Letter Landlord’s Work, as described below, shall be performed by Landlord’s contractor, subcontractors and suppliers that are licensed to do business in the county and state where the Premises are located and at Landlord’s sole cost and expense. All work not described herein as Landlord’s Work shall be performed, with Landlord’s prior written approval, by Tenant and at its sole cost and expense. Slab on Grade and Footings: Slab is existing and will be left in its existing condition. Any areas removed for plumbing installation will be replaced in a similar manner by Landlord. Exterior Walls & Front Façade: Walls and façade are existing. Broken window panes in rear window to be replaced with like kind. Interior Walls: Interior sections of existing masonry walls will be repointed with mortar or parged with a cementitious coating as deemed necessary by Landlord to preserve the existing masonry walls. No cosmetic work on existing interior walls anticipated. Interior demising walls will be of 2x4 stud construction with moisture resistant sheetrock behind wet walls of bathroom. Rear Service Door: Existing Entry Doors: Front door is existing. New walk through door to be added at rear if required by code only. Interior Doors: Hollow metal frame (knock down) with solid core wood or hollow metal door. Flooring: Interior floor finish to be sealed concrete. Ceiling: Existing concrete structure. Lighting: General purpose lighting with florescent fixtures to meet code. Can lights in restroom areas. Tenant to provide and install any accent lights for bar, restroom, or seating areas. Restrooms: Landlord to provide code required amount of stalls and sinks for men and womens restrooms. Tenant to provide vanity mirrors, toilet partitions, and tile for wet wall of restrooms. Fire Protection: None Electrical Service: Provide a new building electrical service. 208v service depending on availability. Landlord will provide a main panel and a sub panel. Landlord will also power all HVAC equipment, general lighting, and bar equipment. Tenant will power any specialty equipment and accent lighting through separate permit. HVAC: New fully operating HVAC system for the following areas: Bar, Brewery, Beer Storage, & Restrooms. Back areas (Phase II) and Chiller Room will not be conditioned. Exhaust and fresh air per code requirements. Duct to be exposed single wall spiral. Anticipated load will be two 5-ton units. Alarm: Fire alarm will be provided if required by code. Water: A supply line and private water meter shall be provided for domestic service of all uses. A domestic hot water tank will be provided to serve the restrooms and bar areas. Any hot water needs for brewing operations will be the responsibility of Tenant. LANDLORD ND TENANT ND Sanitary Sewer: Fully functioning sanitary sewer to new restrooms, bar area, and three (3) trench drains (approx. 4' each) with composite covers. Ventilation: Restroom exhaust will be provided per code. No additional exhaust needs are anticipated. Equipment specific exhaust will be provided by Tenant if necessary. Gas: None. Available in alley if tenant has future needs. Telephone/data: Tenant will provide and coordinate any requirements with service provider. Signage: Tenant to provide minimum 3'x3' professional lighted signage. Neon or backlit blade sign preferable. Roof: Landlord shall provide any necessary repairs to existing roof due to landlord work. Tenant to hire a landlord approved roofing contractor for any repairs necessary for penetrations for Tenants work. Bar: Landlord will provide underslab rough in to bar area for sewer, water, and power. Above slab improvements and equipment for bar, will be provided by Tenant. ND WP SCALE SHEET TITLE CMSWillowbrook Canadian River Brewing
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