Hayden’s lease with Bell Bank terminated after no court ruling; lawsuit against Alorica voluntarily dropped

March 8, 2022 | 5:24 pm

Updated March 8, 2022 | 5:28 pm

File photo by AP Imagery

A federal court declined to rule on a motion by Matt Hayden’s OWB Downtown to enforce a termination agreement with Alorica that would have required Alorica to turn over the vacant space and pay a termination fee, an OWB spokesperson said Tuesday. That led to OWB terminating a separate lease with Bell Bank, meaning the space will continue to sit vacant rather than welcoming a new business downtown. 

OWB has voluntarily thrown out a lawsuit against Alorica related to the termination agreement.

As first reported by Owensboro Times on Monday, OWB was suing Alorica for allegedly failing to pay nearly $800,000 that OWB claimed was owed and for not giving up possession of the premises — despite no longer physically occupying their building and previously agreeing via email to terminate their lease early. 

The landlord, Hayden’s OWB Downtown LLC, also claimed Alorica was intentionally interfering with a new $7 million lease with Bell Bank, which could jeopardize the bank’s entire expansion to Owensboro. 

According to Tuesday’s announcement, Bell Bank will no longer be expanding — at least to that space, although finding another location in Owensboro may not be possible based on the needs of the company and the spaces available to meet those needs.

Ed Ray, Gulfstream Chief Operating Officer and Counsel, commented via a written statement on Tuesday’s lack of ruling by the court.

“Alorica pressed for enforcement of its lease with OWB and its continued right to control the vacant space,” Ray wrote. “The court declined to rule on the motion. Today was a critical juncture in OWB’s lease with Bell Bank: a deadline that required OWB to either turn over the space or terminate the lease. Absent a ruling on OWB’s motion, OWB had no choice but to terminate the Bell Bank lease.”

Ray said OWB will continue to incur damages and, “despite OWB’s voluntary dismissal of the lawsuit against Alorica, has preserved its right to seek those damages in the future.”  

“The unquantifiable damage, however, is to the Owensboro community as the loss of Bell Bank means the space will continue to sit vacant and the additional jobs and companion synergies to the downtown supporting businesses won’t be generated for years,” Ray said.

For a full breakdown of the lawsuit originally filed, click here.

March 8, 2022 | 5:24 pm

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