A dispute over the non-renewal of a downtown Cleveland restaurant’s lease has led to a federal lawsuit alleging racial discrimination, breach of contract, and retaliation by the property’s landlord and management companies. The complaint was filed on March 9, 2026, in the United States District Court for the Northern District of Ohio by Third Space Partners LLC against 668 Atrium, LLC; K&D Management LLC; The K&D Group, Inc.; and Douglas E. Price III.
According to the filing, Third Space Partners LLC leased space from the defendants in 2020 to open a bar and restaurant with outdoor entertainment on the ground floor of a residential apartment building. Initially operating as Sixth City Sailor’s Club (SCSC), which attracted mostly white patrons with live music events similar to those held by previous tenants, Third Space later changed its concept to House of Creole (HOC) in early 2022. This new venture featured Creole cuisine under Black co-owner Jeffeary Miskiri and quickly became popular among Black clientele.
The complaint alleges that following this change in ownership and customer base, defendants began objecting to HOC’s operations on what plaintiff describes as “dubious grounds.” It states that any disruptions involving Black individuals were attributed to HOC without evidence. Plaintiff reports that music genres associated with Black culture became an issue for management despite being played at reasonable volumes. The filing asserts: “Defendants’ actions violate federal civil rights statutes and the Ohio Civil Rights Act.”
Third Space claims it faced increased scrutiny over noise complaints, cleanliness issues, and other operational matters only after launching House of Creole. For example, after a busy NBA All-Star weekend event at HOC in February 2022 drew large crowds downtown—including many Black patrons—K&D district manager Daniel Reed allegedly told Miskiri to “get your people out of there immediately,” which plaintiff argues had racial implications. Subsequent incidents included escalated complaints about patio music during events such as Juneteenth celebrations.
The lawsuit outlines how defendants allegedly treated SCSC differently than HOC regarding noise levels from live music or DJs on the patio. Plaintiff maintains that when SCSC operated with predominantly white patrons and performers, complaints were minimal or handled informally; but when HOC hosted events featuring R&B or hip-hop music with mostly Black guests or musicians, management responded more urgently or imposed restrictions.
In addition to claims of discriminatory enforcement regarding noise ordinances and common area use, Third Space alleges interference with its pest control efforts in early 2024. According to the complaint, defendants required HOC to cancel its contract with Orkin Pest Control in favor of using the building’s exterminator—who visited less frequently—resulting in persistent fly problems that led to negative customer reviews online.
The legal dispute intensified when Third Space attempted to exercise its option for a five-year lease renewal in September 2025. Plaintiff states it communicated its intent within five-and-a-half months before lease expiration but was denied renewal based on technicalities regarding notice timing. Despite repeated attempts by Third Space’s representatives to negotiate new terms or address concerns raised by management—including alleged pest issues—the landlord issued a formal nonrenewal notice without citing specific reasons.
Plaintiff contends that these actions were not motivated by legitimate commercial concerns but rather by an intent to replace a successful business attracting a largely Black clientele near what defendants marketed as “luxury” residential property. The suit also references alleged patterns of racial steering practices affecting residential applicants at the property.
As negotiations failed and uncertainty mounted due to ongoing litigation initiated by the landlord in state court seeking declaratory judgment over lease renewal procedures, Third Space reports it was forced to relocate House of Creole on short notice at significant expense—over $500,000 according to their estimates—including buying out another business’s liquor license and investing in renovations at a new location.
The complaint further describes alleged acts of retaliation during relocation: threats by management to change locks prematurely despite prior agreements about move-out timing; warnings against handing out flyers announcing HOC’s new location; and accusations regarding cleanliness after move-out despite compressed timelines caused by defendant actions.
Third Space seeks compensatory damages for lost business opportunities, reputational harm, emotional distress, attorneys’ fees where permitted by statute, punitive damages for civil rights violations under federal law (including 42 U.S.C. §§ 1981, 1982, 1985), relief under the Fair Housing Act (42 U.S.C. §§ 3601 et seq.), damages for breach of contract related specifically to interference with quiet enjoyment provisions and pest control clauses under their lease agreement with 668 Atrium LLC; as well as damages for tortious interference with business relations due to interruptions allegedly based on pretextual noise complaints linked to race.
The case is represented by attorneys Danielle L. Dietrich (Ohio Bar No. 0081506), Cassandra Porsch (pro hac vice forthcoming), and Bonnie Levine (pro hac vice forthcoming) from Potomac Law Group PLLC. The case identification number is 1:26-cv-00568.
Source: 126cv00568_Third_Space_Partners_LLC_v_668_Atrium_LLC_Complaint_Northern_District_Ohio.pdf
