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Daiquiri Factory wins appeal of eviction; hopes to reopen soon

In this June 23, 2014 file photo, an eviction notice is posted on the doors to the Daiquiri Factory at 121 N. Wall Street in downtown Spokane. (Colin Mulvany / The Spokesman-Review)

The downtown Spokane bar that sparked controversy by naming one of its drinks “Date Grape Kool-Aid” may have new life after being shuttered for about 16 months.

An appeals court Tuesday unanimously overruled a court order evicting Jamie Pendleton and The Spokane Downtown Daiquiri Factory from its location at 121 N. Wall St. The landlord, FPA Crescent, said Pendleton owed money in back rent and terminated the lease in May 2014.

Pendleton countered that he hadn’t received notice required under state law to pay delinquent amounts before the company moved to evict him. Spokane County Sheriff’s deputies oversaw eviction on June 22, 2014, and the location has remained vacant.

Judges Robert Lawrence-Berrey, Laurel Siddoway and George Fearing agreed with Pendleton, saying the landlord should have given Pendleton a three-day notice before initiating eviction proceedings. Pendleton said he sent two payments to FPA Crescent after the complaint was filed in court, but they were returned.

The bar opened for business in February amid a flurry of protests over the cocktail name, which opponents said made light of sexual violence. A boisterous social media response fought back against those protests, calling picketers “haters.” The bar eventually changed the name of the drink.

Pendleton said in an email Tuesday he hoped to reopen the downtown location. The original lease extended through 2021.

Todd Reuter, an attorney for landlord FPA Crescent, said he was disappointed by the court’s decision. He said he hadn’t yet spoken to Pendleton or his attorney, and the company was still weighing its options, including an appeal to the Washington Supreme Court.

Pendleton said there would be an announcement on the business’ future within the next month.

Any attempts to reopen the beleaguered business would likely be hampered by a series of legal complications left in the wake of the business’ closure just four months after opening.

Gonzaga University won a trademark lawsuit ruling in January against Pendleton, claiming the bar owner used its logo and mascot for promotions without its consent. Pendleton claimed fair use and ambiguous trademark filings, but ultimately lost the lawsuit and had to promise never to use the trademarks again.

Earlier this year, the Department of Labor and Industries filed a claim against Pendleton, claiming $4,657 in unpaid taxes. The business owes the Department of Revenue an additional $4,669, according to court records.

Pendleton also settled a claim in June with Spokane Teachers Credit Union for unpaid debts totaling $6,461. His broadcasting company was ordered to pay more than $5,800 to the consumer research firm Arbitron in June 2014, according to court records.

Pendleton also faces a felony criminal charge of fraud in Idaho. He appeared in Kootenai County Superior Court after a warrant was issued for his arrest in August. He posted bond and is awaiting a hearing later this week on the allegations.

Staff writer Rachel Alexander contributed to this report.