SF restaurant owes more than $221,000 in rent, lawsuit says

A San Francisco restaurant in the landmark Cathay House space is at risk of eviction after its landlord alleged more than $220,000 in unpaid rent, according to a lawsuit filed Tuesday.

Landlord and building owner Betty Louie, a retired businesswoman and local philanthropist, filed a motion to evict tenant Cathay House restaurant at 718 California St. Eric Chung, who is listed as the operator of Cathay House LLC in documents submitted with the lawsuit, could not be reached for comment on the pending eviction.

Troubles between the landlord and tenant seem to have originated in 2020, when the lawsuit states Cathay House failed to pay its rent in its full amount or on time. The parties twice agreed to amend the original lease, with the lawsuit including two signed exhibits showing a payment plan to cover the rent owed. But from November 2022 to October 2023, Cathay House allegedly failed to pay rent altogether, leading its estimated outstanding balance to swell to a total of $221,164.08. Louie issued a notice to pay or vacate the space on Oct. 5, and it expired on Oct. 11, the suit states.

“To date, the principal sum of $221,164.08 remains due and unpaid and Defendants continue to occupy the Premises and in possessions thereof,” the lawsuit stated.

Cathay House LLC took over the historic Chinatown property beginning in 2018 following the closure of the original 79-year-old Cathay House restaurant that same year. Initially, the Chris Yeo Group, behind Bay Area restaurant Straits, was interested in taking over the San Francisco landmark but backed out months later. In August, celebrity chef Martin Yan told SFGATE he was interested in potentially opening his namesake M.Y. China restaurant or similar concept at the Cathay House space. 

Cathay House LLC signed a lease in February 2018, according to the lawsuit, with an initial base rent of $17,000. The rent was amended four years later and increased to $18,035.30 in November 2022, then rose to $18,576.36 in March 2023.

Louie is asking that the tenant vacate the space, play the full $221,164.08 in backlog rent, and pay a daily rate of $619.21 for additional days Cathay House restaurant remains on site. SFGATE contacted Louie’s attorney for comment but did not hear back by publication.