Annie Hunt Mar. 10, 2016, 1:34pm


PHILADELPHIA — A property owner is suing a tenant, alleging it failed to pay rent and breached a lease agreement.

Richard A. McGrath of Huntingdon Valley filed a lawsuit on Feb. 29 in the U.S. District Court for the Eastern District of Pennsylvania against U.S. Pipe Fabrication LLC, as successor-in-interest to Custom Fab Inc., alleging breach of contract.

According to the complaint, McGrath and Custom Fab entered into a commercial lease Nov. 26, 2013, for the use of certain improvements to the property at 531 North 4th Street, Denver, Pennsylvania. The parties later amended the lease Dec. 26, 2013, to increase the amount of space, the suit says.

The terms of the lease stipulated five years beginning Dec. 1, 2013, and ending Nov. 30, 2018, requiring monthly rent and utilities payments, according to the suit.

On Aug. 13, 2015, the lawsuit says, U.S. Pipe acquired all assets of Custom Fab and took over the lease agreement. The plaintiff alleges the defendant has failed to pay rent from December 2014 through the present, totaling more than $146,000. Furthermore, McGrath says the defendant has not vacated the premises and has incurred damages to the building in breach of contract.

McGrath seeks damages of $805,572.83, plus interest, costs and attorney fees. He is represented by attorneys Michael G. Menkowitz, Samuel W. Cortes and Ashley L. Beach of Fox Rothschild LLP in Exton.

U.S. District Court for the Eastern District of Pennsylvania Case number 2:16-cv-00960-CDJ

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U.S. District Court of Eastern District of Pennsylvania
601 Market Street
Philadelphia, PA 19106

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