Former caboose concessions operator suing East Dundee

The former operator of East Dundee's caboose concession stand is suing the village after officials decided to seek a new tenant.

Dundee Depot Dogs has rented and seasonally operated out of the village-owned caboose at 112 Railroad St. since 2015, under a two-year license agreement between the village and business owner James Stanula. Rather than granting Stanula's request to extend that deal, the village board in February opted to accept proposals from other food vendors.

The lawsuit filed March 31 claims that East Dundee violated the agreement with Stanula by "improperly evicting" him and failing to adhere to his rights to a two-year contract extension. Stanula is now seeking at least $130,516 in damages, plus punitive damages.

"The village knowingly breached a contract with my client in order to basically benefit their own position by being able to directly solicit potential buyers," said Patrick Mayerbock, an attorney representing Stanula. "My client had a legal right pursuant to the agreement to keep and maintain that property for his own business uses."

Deputy Village Administrator Jennifer Johnsen said Thursday that the village was unaware a lawsuit had been filed.

In early 2015, Stanula acquired the licensing rights to the concession stand for $65,000 from Blues Restaurants-Chicago LLC, according to the complaint. Blues representatives had entered into the initial license agreement with the village but backed out for financial reasons before they began operating.

After operating Dundee Depot Dogs for two years, Stanula lost money and considered selling the business instead of exercising his option for a two-year contract extension, documents show. The village granted a 30-day extension when the initial agreement expired Jan. 1 to give Stanula more time to find a new operator, Johnsen said.

Stanula, who did not find a buyer, later decided to pursue the two-year extension option, according to court records. But Johnsen says East Dundee attorneys contend the two-year extension was nullified by the 30-day extension, Johnsen said.

In a Feb. 27 email to Stanula, Village President Lael Miller said an entirely new license agreement would have to be approved before granting Stanula any additional time as the concessionaire. Trustees had denied a new agreement earlier that month, Miller said, and Stanula was asked to move out of the caboose by March 6.

Mayerbock, however, argues the village had already entered a two-year extension agreement with Stanula in October as a fail-safe. The document, which only recently came to light, likely slipped through the cracks while Stanula was searching for a new operator, Mayerbock said.

"The village had already approved that extension," Mayerbock said. "Legally speaking, we have those rights."

Johnsen said the village is unaware of any such agreement signed in October.

The village board on Monday is expected to consider staff's recommendation for a new caboose tenant, which was chosen out of four candidates. Their names have not been disclosed.