Cartier Files $40M Lawsuit Against Saks

RAPAPORT... Saks Fifth Avenue illegally ordered Cartier to vacate aprime location inside its famous New York department store, according to a $40million lawsuit Cartier filed last week. The case revolves around a lease agreement that gave Cartieruse of space inside Saks's site on the corner of Fifth Avenue and 49th Street.Saks renovated the building earlier this year, and assured the tenant the workswould not affect its lease, Cartier alleged in the October 3 complaint. Despitethat, the landlord subsequently terminated the lease, the lawsuit claims. Cartier specifically selected the site for its excellent location,and invested in renovating the space to suit its needs, the New York StateSupreme Court filing states. It renewed the lease for five years in 2016. Saks began remodeling the store this year, a move it hadbeen planning for a long time. The renovations created "substantial challengesfor Cartier," including "significant dust and construction debris," requiring muchcleanup work by Cartier employees, which had an adverse effect on their health,the lawsuit alleged. The process also led to reduced customer traffic forCartier, resulting in "significant damages," it stated. Prior to the remodeling, senior executives at Saks"repeatedly and consistently" assured Cartier it would respect the lease duringthe works and not displace the jeweler, according to the filing. However, onAugust 14, Saks sent a letter to Cartier terminating its lease agreement andrequiring it to vacate the premises by October 13. Saks failed to find Cartieran acceptable alternative location, and promised the Cartier spot to anothercompeting luxury brand following the completing of the renovations, Cartiersaid. "Saks's actions...were undertaken in bad faith, for the purposeof harassing Cartier and interfering with its ability to operate the Cartier departmentin the Cartier location, and constitute a breach of the covenant of good faithand fair dealing," Cartier said. Cartier claims Saks's actions caused it more than $40 million in damages. The jeweler is seeking that amount from Saks, and has asked the court to stop the department store from terminating thelease, according to the filing. Saks had not responded to a request for comment at press time. Image: Saks Fifth Avenue. (Bishonen)