CLEVELAND -- The owners of popular Cleveland restaurant chain Barrio have filed a lawsuit against a former business partner for creating a chain of similar taco restaurants.
The lawsuit alleges that Joseph Kahn and his partners stole Barrio's concepts and violated an agreement made when he left the Barrio restaurant group in 2013.
According to the lawsuit, Kahn bought in to Barrio's management group prior to the opening of the chain's Tremont location in 2012. After a disagreement between Kahn and Barrio founder Thomas Leneghan, a Mutual Release and Settlement Agreement cut Kahn's ownership ties to the restaurant. The lawsuit also says the agreement barred Kahn from using Barrio's trade secrets, and prevented him from creating a Mexican style restaurant in the Cleveland area.
But Kahn opened Condado Tacos, a group of restaurants that bears a noticeable likeness to Barrio. The chain operates several Columbus area locations, as well as sites in Pittsburgh, Cincinnati and Indianapolis. Its first Cleveland area location is scheduled to open in Orange's Pinecrest development this winter.
Barrio's ownership group claims that Condado's opening of locations in other regions limits Barrio's expansion capabilities into other markets.
"Condado's capitalized on Barrio's established brand through misappropriation of the latter's trade secrets and trade dress," the lawsuit says. "Condado's inappropriately mimicked Barrio's dining and entertainment experience to all Cleveland transplants that have come to enjoy the Barrio brand while expanding Barrio's unique and protected brand to a whole new market."
The lawsuit also claims Condado, which means "county" in Spanish, is a rip-off of Barrio, which means "neighborhood."
The suit also notes Condado's aesthetic likeness to Barrio, which bears a "Day of the Dead" theme, and the similar serving concept in which patrons create their own tacos from a checklist of ingredients.
Barrio-Condado menus by WKYC.com on Scribd
"The minute a patron walks into a Condado, the patron is immersed in an atmosphere an embarking on a dining experience that has the look and feel of Barrio," the lawsuit states.
The lawsuit goes on to allege, "Many of the ingredients are identical to Barrio's, the custom created tacos are served in a similar manner right down to the plastic Spork placed in every plastic basket serving foil wrapped tacos."
Kahn said he plans to fight the lawsuit "vigorously" in a statement issued through attorney Brad Barmen.
"Curiously, this has never been an issue until we announced our first Cleveland location would open at Pinecrest in Orange this winter," Kahn's statement said.
Read his full statement below:
Joe Kahn statement by WKYC.com on Scribd
View the full lawsuit below:
Barrio v. Condado suit by WKYC.com on Scribd
