Wash Park Grille owner countersues late business partner’s estate for $170K

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Wash Park Grille, at 1096 S. Gaylord St. in Denver, is seen on Wednesday, June 5, 2024. (Justin Wingerter/BusinessDen)

The owner of the Wash Park Grille claims that his late business partner saddled that restaurant and a second they owned with $300,000 in government loans and then paid himself $170,000 from the companies’ bank account — money his estate is now refusing to repay.

Until the latter’s death in 2022, Jeff Estey and Greg Sauber jointly owned the Wash Park Grille at 1096 S. Gaylord St., the neighboring Agave Taco Bar, and real estate nearby. Since his death, divisions have emerged between Estey and the executor of Sauber’s estate.

In late May, the estate sued Estey, accusing him of reneging on a succession plan that involved Estey buying Sauber’s shares in their restaurants and real estate holdings. The estate also suggested that Estey may have pocketed $1 million from a life insurance policy.

“We are currently working through this,” Estey said then, “and everything is operational.”

Estey filed his response to the lawsuit on July 12, claiming that he has offered to buy Sauber’s half of the Wash Park Grille for $266,000 and Sauber’s half of their real estate for $333,000, prices agreed upon by Sauber and Estey and spelled out in contracts. Estey denies the estate is entitled to the $1 million from Wash Park Grille’s life insurance policy for Sauber.

Estey is also countersuing Sauber’s estate for breach of contract, breach of fiduciary duty and unjust enrichment. Estey claims that in June 2020, Sauber applied for two $150,000 pandemic-era loans on behalf of the Wash Park Grille and Agave Taco Bar, then cut a $236,000 check to himself and told Estey that most of the money would be used to repay a loan.

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Agave Taco Bar, 2217 E. Mississippi Ave. in Denver, is seen on Wednesday, June 5, 2024. (Justin Wingerter/BusinessDen)

Instead, “Mr. Sauber engaged in a conflicted, self-interested transaction by retaining the $172,645 in funds from the check that belonged to Wash Park Grille, instead of using those funds to pay back the WPG loan or the Agave loan,” Estey’s countersuit alleges.

The countersuit asks Denver District Court Judge Jill Dorancy to require Sauber’s estate to accept Estey’s $600,000 offer for their joint companies, require the estate to repay the $172,000 that Sauber allegedly took from the Wash Park Grille and pay Estey’s attorney fees.

Estey’s lawyers are Aaron Evans, Keith Lapuyade and Andrew Rogers with the Denver law firm Evans Case. Estey did not answer a request for comment on the countersuit.

The lawyers for Sauber’s estate are Valeri Pappas and Casey Alexa Peel with the Denver law firm Davis & Ceriani, who also did not return requests for comment this week.

P6055131 scaled

Wash Park Grille, at 1096 S. Gaylord St. in Denver, is seen on Wednesday, June 5, 2024. (Justin Wingerter/BusinessDen)

The owner of the Wash Park Grille claims that his late business partner saddled that restaurant and a second they owned with $300,000 in government loans and then paid himself $170,000 from the companies’ bank account — money his estate is now refusing to repay.

Until the latter’s death in 2022, Jeff Estey and Greg Sauber jointly owned the Wash Park Grille at 1096 S. Gaylord St., the neighboring Agave Taco Bar, and real estate nearby. Since his death, divisions have emerged between Estey and the executor of Sauber’s estate.

In late May, the estate sued Estey, accusing him of reneging on a succession plan that involved Estey buying Sauber’s shares in their restaurants and real estate holdings. The estate also suggested that Estey may have pocketed $1 million from a life insurance policy.

“We are currently working through this,” Estey said then, “and everything is operational.”

Estey filed his response to the lawsuit on July 12, claiming that he has offered to buy Sauber’s half of the Wash Park Grille for $266,000 and Sauber’s half of their real estate for $333,000, prices agreed upon by Sauber and Estey and spelled out in contracts. Estey denies the estate is entitled to the $1 million from Wash Park Grille’s life insurance policy for Sauber.

Estey is also countersuing Sauber’s estate for breach of contract, breach of fiduciary duty and unjust enrichment. Estey claims that in June 2020, Sauber applied for two $150,000 pandemic-era loans on behalf of the Wash Park Grille and Agave Taco Bar, then cut a $236,000 check to himself and told Estey that most of the money would be used to repay a loan.

P6055139 scaled

Agave Taco Bar, 2217 E. Mississippi Ave. in Denver, is seen on Wednesday, June 5, 2024. (Justin Wingerter/BusinessDen)

Instead, “Mr. Sauber engaged in a conflicted, self-interested transaction by retaining the $172,645 in funds from the check that belonged to Wash Park Grille, instead of using those funds to pay back the WPG loan or the Agave loan,” Estey’s countersuit alleges.

The countersuit asks Denver District Court Judge Jill Dorancy to require Sauber’s estate to accept Estey’s $600,000 offer for their joint companies, require the estate to repay the $172,000 that Sauber allegedly took from the Wash Park Grille and pay Estey’s attorney fees.

Estey’s lawyers are Aaron Evans, Keith Lapuyade and Andrew Rogers with the Denver law firm Evans Case. Estey did not answer a request for comment on the countersuit.

The lawyers for Sauber’s estate are Valeri Pappas and Casey Alexa Peel with the Denver law firm Davis & Ceriani, who also did not return requests for comment this week.

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