Gearbox Software filed a lawsuit against Frisco Square Developers after receiving a notice that Gearbox’s lease could be terminated June 26.
A temporary injunction hearing has been scheduled for June 18, during which Gearbox plans to present evidence to the claims stated in the lawsuit in an effort to stop the lease termination, Gearbox’s attorney Matthew Whitley said.
Gearbox is a videogame development company founded in 1999. Currently located in Plano, Gearbox signed a lease with landlord and developer FSD in 2011 to move into the top two floors of a multi-use complex called the Tower at Frisco Square.
That lease has since been extended to allow Gearbox to occupy the top three floors of the building, totaling more than 90,000 square feet of office space.
According to the suit, the original terms of the lease required FSD to construct the building, including the interior, by 2013. However, delays pushed the completion deadline back to Aug. 1. The amended lease with the new deadline came with consequences for FSD if the building was not completed on time.
In March 2015, both parties agreed to use Scott + Reid as the interior contractor with FSD paying for the work up to a certain amount and Gearbox paying for any expenses beyond that, according to the suit. FSD attorney Larry Friedman said FSD originally wanted to use another contractor, but Gearbox wanted to hire S+R.
The suit says the building construction was behind schedule, impeding S+R’s ability to finish the interior construction.
Gearbox, FSD and S+R held a meeting in April where S+R said its employees had been working for weeks without being paid, according to the suit. FSD said it had failed to reach an agreement with S+R and suggested Gearbox contract directly with S+R.
In May, Gearbox contracted with S+R and notified FSD. When FSD received the notification, it claimed Gearbox had breached its lease, the suit says.
“Gearbox has spent the last four years planning on the move, working with the city of Frisco and with the developer to get the building moving along,” Whitley said. “When it learned about the problems the construction was having, Gearbox stepped in and did what we thought the landlord wanted.”
Contrary to the lawsuit, Friedman said FSD did not agree to let Gearbox contract with S+R.
FSD asked Gearbox to sign a new amended lease that eliminated the Aug. 1 deadline and also sent a Notice of Default and Cure Request to Gearbox, according to the suit. The notice states the lease would be terminated on June 26 if Gearbox did not cure the defaults of the lease. FSD has also denied Gearbox the right to have signage on the Tower at Frisco Square, the suit says.
The notice was sent to Gearbox on May 27, giving the company 30 days to comply with the lease terms, Friedman said. Gearbox's lease would be eligible for termination and would only be terminated if the landlord chooses to do so, which is not what FSD would prefer to do, he said.
"Unfortunately, Gearbox signed a lease, and they didn't abide by the terms of the lease," Friedman said. "...My take on it is they live in a world of virtual reality, and my clients live in a world of reality."
Friedman said he has tried to meet with Gearbox representatives since the lawsuit was filed and has suggested mediation to resolve the issues, but he has not received a response from Gearbox. However, he said he is confident that this situation will be resolved quickly.
"My clients want lease compliance, and [Gearbox] is trying to negotiate a new lease," he said. "They're using the courts to negotiate a new lease."
Whitley said FSD actions have been “utterly bizarre,” adding that this is likely a pretext to FSD’s inability to finish the building on time. Gearbox filed the suit June 10 because it is committed to moving to Frisco, he said.
“Gearbox has every intent and desire to move to Frisco,” Whitley said. “I know the city of Frisco over the past several years expressed an equal commitment to get Gearbox into Frisco. The move is very important for both the company and the city.”
Gearbox Software filed a lawsuit against Frisco Square Developers after receiving a notice that Gearbox’s lease could be terminated June 26.
A temporary injunction hearing has been scheduled for June 18, during which Gearbox plans to present evidence to the claims stated in the lawsuit in an effort to stop the lease termination, Gearbox’s attorney Matthew Whitley said.
Gearbox is a videogame development company founded in 1999. Currently located in Plano, Gearbox signed a lease with landlord and developer FSD in 2011 to move into the top two floors of a multi-use complex called the Tower at Frisco Square.
That lease has since been extended to allow Gearbox to occupy the top three floors of the building, totaling more than 90,000 square feet of office space.
According to the suit, the original terms of the lease required FSD to construct the building, including the interior, by 2013. However, delays pushed the completion deadline back to Aug. 1. The amended lease with the new deadline came with consequences for FSD if the building was not completed on time.
In March 2015, both parties agreed to use Scott + Reid as the interior contractor with FSD paying for the work up to a certain amount and Gearbox paying for any expenses beyond that, according to the suit. FSD attorney Larry Friedman said FSD originally wanted to use another contractor, but Gearbox wanted to hire S+R.
The suit says the building construction was behind schedule, impeding S+R’s ability to finish the interior construction.
Gearbox, FSD and S+R held a meeting in April where S+R said its employees had been working for weeks without being paid, according to the suit. FSD said it had failed to reach an agreement with S+R and suggested Gearbox contract directly with S+R.
In May, Gearbox contracted with S+R and notified FSD. When FSD received the notification, it claimed Gearbox had breached its lease, the suit says.
“Gearbox has spent the last four years planning on the move, working with the city of Frisco and with the developer to get the building moving along,” Whitley said. “When it learned about the problems the construction was having, Gearbox stepped in and did what we thought the landlord wanted.”
Contrary to the lawsuit, Friedman said FSD did not agree to let Gearbox contract with S+R.
FSD asked Gearbox to sign a new amended lease that eliminated the Aug. 1 deadline and also sent a Notice of Default and Cure Request to Gearbox, according to the suit. The notice states the lease would be terminated on June 26 if Gearbox did not cure the defaults of the lease. FSD has also denied Gearbox the right to have signage on the Tower at Frisco Square, the suit says.
The notice was sent to Gearbox on May 27, giving the company 30 days to comply with the lease terms, Friedman said. Gearbox's lease would be eligible for termination and would only be terminated if the landlord chooses to do so, which is not what FSD would prefer to do, he said.
"Unfortunately, Gearbox signed a lease, and they didn't abide by the terms of the lease," Friedman said. "...My take on it is they live in a world of virtual reality, and my clients live in a world of reality."
Friedman said he has tried to meet with Gearbox representatives since the lawsuit was filed and has suggested mediation to resolve the issues, but he has not received a response from Gearbox. However, he said he is confident that this situation will be resolved quickly.
"My clients want lease compliance, and [Gearbox] is trying to negotiate a new lease," he said. "They're using the courts to negotiate a new lease."
Whitley said FSD actions have been “utterly bizarre,” adding that this is likely a pretext to FSD’s inability to finish the building on time. Gearbox filed the suit June 10 because it is committed to moving to Frisco, he said.
“Gearbox has every intent and desire to move to Frisco,” Whitley said. “I know the city of Frisco over the past several years expressed an equal commitment to get Gearbox into Frisco. The move is very important for both the company and the city.”
