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Trial begins in airport restaurant dispute

Associated Press - December 1, 2009 12:15 PM ET

RAPID CITY, S.D. (AP) - A trial is under way in a lawsuit filed against Rapid City by the former operators of the restaurant at the city airport.

James Anderson and his sister J.P. Duniphan of Hospitality Services Inc. are suing for breach of contract and seeking up to $709,000 in lost future income, along with $30,000 for upgrades made to the airport property.

The dispute centers around extensions of a 20-year lease Anderson and Duniphan entered into in 1988 with the airport board to run Darlene's Cafe and Lounge.

The airport board decided in June 2008 that HSI had defaulted on its lease and was not eligible to apply for renewal, because of problems with the restaurant's appearance and that fact that HSI's Health Department license had lapsed for a time.

Duniphan testified Monday that the license problem was resolved quickly and that the company took steps in June 2008 to repair or replace items in the restaurant that needed attention.

Information from: KEVN-TV, http://www.kevn.com

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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