The Original Saugus Café, the oldest restaurants in Los Angeles County, has reopened under new management after shutting down last month, but the grand reopening was clouded by a lawsuit against the property owner.
The reopening came on Monday, two weeks after the Santa Clarita restaurant closed after nearly 140 years.
Alfredo Mercado, the previous operator of the restaurant, had not elaborate why he decided to shut down the restaurant last month.
But according to the complaint filed by Mercado against the building owner, North Valley Construction, he is suing the property owner for breach of contract and trademark infringement.
The Mercado patriarch had purchased the restaurant in 1998 after working for the business as a bartender for “many years,” according to the complaint.
Mercado alleges that he began renting the restaurant space from Hank Arklin from 1998 after a “handshake, oral lease agreement.” But when Arklin died, problems began, according to Mercado, and eventually, the property owner forced Mercado out of the business.
“Plantiff never had any intent to close its business,” the lawsuit said, alleging the property owner, now called North Valley Construction, verbally told the Mercado family to vacate the property in late December.
The Mercado family also said the reopening came as a surprise.
“We truly thought that was the end of the Saugus Café,” Jessie Mercado, one of the former operators, said.
The Mercado family also claims that it owns the rights to the Saugus Café name.
“If they have interest in our name, we’re willing to sell it. It’s truly unfair that they’re using it without our consent, without compensating us,” Mercado said.
NBC Los Angeles reached out to North Valley Construction for comment.
The new operators, meanwhile, said they will do their best to live up to the Saugust Café’s historic reputation.
“They gave me the opportunity, and I get it. I’m going to try and do the best I can,” Eduardo Reyna said.
