Willowbrook Mall claims shuttered restaurant owes $2.7 million in rental fees

WAYNE — Willowbrook Mall has sued a former bar and restaurant tenant for millions of dollars in back rent and other damages, claiming it defaulted on its lease.

But the restaurant, Tío Juan’s Margaritas, filed a countersuit in which it claims that the mall — among the largest shopping destinations in the state — was the first to breach their agreement.

Judge Vicki Citrino, sitting in state Superior Court in Paterson, is scheduled to decide next week whether to strike the restaurant’s answer to the initial allegations after the mall filed a motion to suppress its defense.

In its complaint, the mall alleges that Tío Juan’s owes almost $2.7 million for having broken terms of the agreement it entered in April 2016.

Tío Juan’s, which served Mexican fare, opened two years later near the entrance to the mall’s food court.

It replaced Ruby Tuesday, and it was run by a franchisee based in Old Bridge in Middlesex County.

The restaurant closed at the outset of the COVID-19 pandemic, and it never reopened.

Wayne Dining, the limited liability company that operated Tío Juan’s, alleges the mall did not provide advertisements for the restaurant, which were agreed upon through their pact. Its counterclaim does not specify the type of marketing support it expected to receive.

But the consequence was that “customers and foot traffic declined,” according to court papers, causing “significant damages” to the business.

In addition, the company alleges it had to endure “constant water leaks” at its restaurant and that the state of disrepair drove away potential clientele.

And as anchor stores and other retailers closed, the company alleges that its restaurant experienced further damages.

Lawrence Berkeley, an attorney representing the mall, declined to comment about the case this week.

Spencer Robbins, an attorney for Wayne Dining, did not return a call placed to this law office in Woodbridge Township.

Tío Juan’s, which is headquartered in New Hampshire, has 25 restaurants; most can be found in New England states.

The space it once occupied in Wayne remains vacant. Brio Tuscan Grille and California Pizza Kitchen also shuttered at the mall in the past two years — the latter after filing for Chapter 11 bankruptcy protection.

The mall still has 34 dining options, including kiosks and counters at the food court. The most recent sit-down addition was Yard House, a bar and restaurant that opened in June.