Wharf restaurateurs sue Monterey County Bank; bank plans to sue them back.

The Shakes, a family of long-time Fisherman’s Wharf restaurateurs, want to sign a lease with the city of Monterey. But first they’re taking Monterey County Bank to court. 


Chris Shake’s beef, as laid out in an April 26 Monterey County Superior Court complaint, is that the bank is blocking his Fisherman’s Wharf Company from an option to become the master renter from the landlord, the city of Monterey. 


The Shakes sublet the parcel that’s home to Isabella’s from Nino Palma. Palma’s considering selling it to the Shakes. But the bank argues its loan requires the Shakes to remain subletters, which blocks their negotiations with Palma. 


The Shakes’ attorney, Nolan Kennedy of Kennedy, Archer & Giffen, contends since the sublease agreement expired, the bank has nothing to back up its loan. “Quite frankly, Monterey County Bank is wrong,” he says. 


Bank President and CEO Charles Chrietzberg won’t comment on pending litigation, but says, “The bank is in the process of filing a counterclaim against Chris Shake. It’ll be major litigation.”


The arrangement offers a glimpse into what Monterey Planning Commissioner Bill McCrone criticizes as a feudal system in need of reform. 


The city’s 1991 lease agreement sets a minimum $926 monthly rent – or 3 percent of sales, whichever is higher – for Palma; the Shakes pay him an additional 5 percent. “It’s pure profiteering on public property,” McCrone says.


From the city’s perspective, transferring the lease from Palma to the Shakes is no big deal. Officials aren’t worried about litigation, but a $4,600 state tax lien filed in 2012 against Isabella’s.


“We’re at an impasse,” Monterey Planning Chief Chip Rerig says. “We can’t go to the council to ask them to approve the assignment until that’s cleared up.”