In the filing, Taft claims Arkham has failed to maintain and manage the building at 40 N. Main St. adequately, asserting “the degraded physical condition” has resulted in “constant” HVAC and plumbing issues, among other problems.
“Taft has continuously worked with Arkham in a good-faith attempt to have the building’s problems addressed. Taft mistakenly believed Arkham’s promises that it was committed to resolving the maintenance issues,” the complaint reads.
The law firm has leased space within the building, formerly known as the Kettering Tower, since 2010, according to the lawsuit. Arkham, led by Stratacache founder and CEO Chris Riegel, bought the building in 2019 and renamed it the “Stratacache Tower.”
In an emailed statement to the Dayton Daily News late Friday night, Riegel said it was “disappointing” to hear of the lawsuit, and pushed back against some of Taft’s claims.
“The safety of the building’s patrons, tenants, and contractors is of paramount importance to Arkham Tower, LLC,” Riegel wrote, also pointing out that his Stratacache employees work in the building. “... Although Taft has now alleged in court filings that we have not adequately maintained the building, this is directly contradicted by Taft’s renewal of its lease in both 2021 and 2023.”
Taft says in the complaint that the 2023 lease amendment was “to provide for a renovation of Taft’s existing offices, the build-out of additional office space for Taft within the building, and an extended term.” Taft claimed the building’s office space did not meet the “Class A” level at which Arkham lists it.
Taft says it began that process, moving out of its existing space, and in the meantime, moving to temporary space on other unused floors of the building. Taft claims Arkham then refused to perform removal of significant amounts of friable asbestos that two consulting companies said would be necessary for Taft to continue its renovations, citing the cost.
“Arkham’s half-hearted proposal to mitigate the asbestos hazard is contrary to both expert opinions and is plainly inadequate,” Taft asserts in the court filing. “Taft is unwilling to subject the construction workers, its own employees, and others in the building to the risks associated with shoddy asbestos mitigation on the renovation project.”
Taft pointed to specific language in the lease, requiring Arkham to handle asbestos work “in strict compliance with OSHA and EPA regulations.”
In his statement, Riegel said Arkham’s plan met requirements.
“Despite encountering Taft’s operational and construction management issues over the last three years, we have always been committed to Taft’s renovation project and have spent hundreds of thousands of dollars in support of it already,” Riegel said. “In furtherance of this, we have incurred the cost for the agreed upon asbestos mitigation completed by a certified asbestos contractor as agreed upon in the lease and in compliance with all law and regulations.”
Taft now claims the firm has been asked to pay additional rent for its temporary space. The law firm also claims the building suffers from leaking radiators and pipes, water damage, poor temperature control that has office spaces varying from 60 to 85 degrees, lack of janitorial services, and presence of insects and mice.
“The delay (in renovation) is entirely Arkham’s fault and Taft will not allow the threat of additional rent to bully it into risking the health of the people in the building,” the suit reads.
The suit goes on to claim Arkham has breached its lease with the law firm. Taft asks the court for a ruling directing Arkham to remove the asbestos and maintain the office space at a “Class A” level. Taft also seeks “punitive damages, costs, expenses, and attorney fees in an amount in excess of $25,000.”
“While we believed that Taft was working in good faith towards a resolution of this matter, it is disappointing to learn of this new development,” Riegel wrote. “Unfortunately, we seem to live in a world where litigation trumps mature discussion of solutions.”
In response to the statement by Riegel, the Taft law firm issued a response Saturday.
“Taft categorically denies statements made by Arkham,” the statement reads. “When we amended our lease, we had no belief that our landlord would abdicate its clear obligations to abate the asbestos that is pervasive throughout the space in accordance with applicable laws and regulations. Arkham’s continuing refusal to do so is the reason we were left with no choice but to file this lawsuit. Additionally, the building has deteriorated since we signed the second amendment.”
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