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Gialy’s Sale Winds Up In State Supreme Court

The owners of the former Gialy’s Restaurant are asking the state Supreme Court in Mayville to enforce the sale of their building.

Gialy’s Realty LLC filed suit Friday in state Supreme Court in Mayville to ask Supreme Court Justice Grace Hanlon to require Locale Hospitality LLC to go through with its purchase of 210 Pine St., which formerly housed the Town Club before Gialy’s opened in 2015.

After Gialy’s closed, the building’s owners sought to sell the building. A $200,000 sale was agreed to Sept. 19, 2024, according to the lawsuit filed on behalf of Gialy’s LLC by attorney Charles DeAngelo of Fessenden, Laumer and DeAngelo, with $20,000 deposit due by Sept. 24. Only $1,500 was placed in escrow. Other conditions of the sale include Gialy’s removing all kitchen equipment, all personal items and all garbage and to broom clean the building before closing.

By November 6, attorneys representing Locale Hospitality told Gialy’s attorneys that Locale Hospitality wanted to back out of the sale.

“Plaintiff has been damaged at minimum in the amount of $200,000, or other present market value of 210 Pine St., Jamestown, N.Y.,” DeAngelo wrote in his complaint. “Plaintiffs have been further damaged in the amount of $150,000 or other additional amount, depending on market values, that is, the cost to replace all equipment, furniture and supplies that had been removed and disposed of upon the demand of the defendants.”

Gialy’s Realty LLC is alleging breach of contract and anticipatory breach of contract, is asking Hanlon to force the sale to be completed and a preliminary injunction tied to the possible sale of property owned by the principals of Locale Hospitality. DeAngelo wrote that Locale Hospitality’s owners are believed to be selling their home and may be relocating out of state, citing an advertisement for an estate sale that was held Dec. 12-14. DeAngelo is askin for a preliminary injunction that would direct proceeds from the sale of the private property into an interest-bearing account so that those assets are preserved to pay a possible judgement to his client.

What happens to the former Town Club is also an open question.

“Absent the relief requested herein, this unique property is not marketable, as it has been stripped of all equipment, all furniture and of all other supplies necessary to run a restaurant, which was the prior exclusive use of the building since the late 1920s,” DeAngelo wrote.

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