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MCCLAIN COUNTY • CJ-2026-00003

ARC CAFEUSA001, LLC v. OK Restaurant Holdings, LLC

Filed: Jan 5, 2026
Type: CJ

What's This Case About?

Let’s be honest: nobody tunes into a civil court drama expecting Shakespeare. But sometimes, the gods of petty capitalism align, and we get something so gloriously mundane yet emotionally charged that it feels like a telenovela set in a strip mall. This is one of those cases. A landlord is suing a Carl’s Jr. franchisee for $10,416.86 in unpaid rent — not $100,000, not six figures, but just over ten grand — and wants the judge to kick them out of their own restaurant without actually ending the lease. Yes, you read that right. They want the keys, but they still want the tenant on the hook. It’s like breaking up with someone but insisting they keep paying the Netflix subscription.

So who are these people? On one side, we have ARC CAFEUSA001, LLC, which sounds less like a real estate company and more like a password generated by a robot that just watched The Matrix. They’re the landlord, based in Delaware (because of course they are — where else do shell companies go to retire?), and they own the building at 503 W. Washington in Purcell, Oklahoma, where a Carl’s Jr. has been flipping (or attempting to flip) burgers since at least 2010. On the other side is OK Restaurant Holdings, LLC, a Delaware-based entity that operates this particular Carl’s Jr. location. They’re not some mom-and-pop fry cook operation — this is a corporate franchise, likely part of a larger chain managed by suits in Texas. The relationship? Classic landlord-tenant, bound by a lease signed way back in February 2010, set to run until January 2030 — a 20-year commitment, like a really long marriage with no prenup and a lot of late fees.

Now, what went wrong? Well, money stopped showing up. According to the filing, OK Restaurant Holdings failed to pay Base Rent — which is $5,082 per month, due on the first of each month — for September, October, November, and December of 2025. That’s four months of missing payments, which alone would total just over $20,000. But wait — the landlord isn’t even asking for that full amount yet. Instead, they’re suing for $10,416.86, which suggests they’re either being generous (ha!) or focusing on the most immediate arrears. The lease also tacks on late fees and interest, because nothing says “we value your business” like charging you extra for being broke. By August 2025, the unpaid balance was already $41,195.30 — a number that somehow ballooned from a few missed payments into a five-figure mess, thanks to compounding penalties. The landlord sent a Notice of Default that month, giving the tenant ten days to pay up or face legal action. They didn’t. Then, in December 2025, they sent a second notice, this time stating the arrears were $44,802.86. Still nothing. So on January 5, 2026, the landlord filed suit.

But here’s where it gets weird — legally speaking, at least. The lawsuit has two claims. The first is Breach of Contract, which is straightforward: you signed a lease, you agreed to pay rent, you didn’t. Boom. Lawsuit. The second claim? Forcible Entry and Detainer — a fancy legal term that basically means “get out of my building.” But here’s the twist: the landlord doesn’t want to terminate the lease. They want to evict the tenant while keeping the contract alive. Why? Because if the lease is still active, they can keep charging rent — even while the tenant is locked out. It’s like saying, “You’re no longer allowed in the house, but you still have to pay the mortgage.” This is a strategic move. If the tenant is gone but the lease continues, the landlord can sue for future unpaid rent as it accrues, turning a $10K claim into a much bigger payday down the road. It’s not about the building — it’s about the money stream.

So what do they want? Possession of the premises, meaning the Carl’s Jr. has to hand over the keys. They also want all unpaid rent, fees, and charges — currently $10,416.86, though that’s clearly just a snapshot of a much larger debt. They’re also asking for attorney’s fees and court costs, which, let’s be real, might end up costing more than the actual rent they’re chasing. Is $10,416.86 a lot? In the world of commercial real estate, not really. For a 15-year-old Carl’s Jr. in Purcell, Oklahoma, that’s less than two months’ rent. But to a franchise struggling with foot traffic, rising ingredient costs, or the eternal question of “who even eats here?”, it might be the straw that breaks the burger basket. And yet — they’re being sued not just for the money, but for the principle, and the precedent, and the legal leverage. This isn’t just about ten grand. It’s about sending a message: pay up, or we’ll take your keys and your credit.

Our take? The most absurd part isn’t the amount. It’s the drama of the double notice, the army of CC’d corporate email ghosts, and the sheer bureaucratic theater of it all. Look at that August 1, 2025 notice — it’s addressed to “Lessee,” signed by a “Senior Vice President, Assistant General Counsel, Litigation, Risk & Commercial,” and copied to 13 different people, from “AVP Accounts Receivable” to “Property Tax Supervisor.” This isn’t a landlord mad about rent — this is a corporate machine grinding through a default like it’s processing a spreadsheet. And yet, for all that machinery, they still couldn’t stop a $10K hole from opening up. Meanwhile, the tenant — a Carl’s Jr. franchise — is apparently so disorganized or cash-strapped that they missed four straight rent payments and didn’t even try to negotiate. Did they forget? Are they tanking? Did someone misread a wire transfer? We may never know.

But here’s what we’re rooting for: a last-minute payment. Not because we love corporate landlords or failing fast food joints, but because the real winner here is the attorney, Margaret M. Sine, billing hours to chase down late fees on a lease older than some high school seniors. If this case settles quietly, we lose the spectacle. And in the world of civil court entertainment, that’s the greatest tragedy of all. We’re not lawyers. We’re not accountants. We’re just here for the trainwreck — and this one’s got receipts, late fees, and a side of curly fries.

Case Overview

$10,417 Demand Petition
Jurisdiction
District Court for McClain County, Oklahoma
Relief Sought
$10,417 Monetary
Plaintiffs
Defendants
Claims
# Cause of Action Description
1 Breach of Contract Defendant failed to pay rent and other costs due and owing to Plaintiff under the Lease Agreement.
2 Forcible Entry and Detainer Plaintiff seeks to recover possession of the Premises without termination of the Lease Agreement.

Petition Text

4,038 words
IN THE DISTRICT COURT FOR MCCLAIN COUNTY STATE OF OKLAHOMA ARC CAFEUSA001, LLC., a Delaware limited liability company, Plaintiff, v. OK RESTAURANT HOLDINGS, LLC, a Delaware limited liability company Defendant. VERIFIED PETITION Plaintiff, ARC CAFEUSA001, LLC ("Plaintiff"), for its causes of action against Defendant OK Restaurant Holdings, LLC ("Defendant"), alleges and states as follows: PARTIES, JURISDICTION AND VENUE 1. Plaintiff is Delaware limited liability company registered to do business in Oklahoma. 2. Defendant is a Delaware limited liability company registered to do business in Oklahoma and operating in McClain County, Oklahoma. 3. Jurisdiction is proper in this Court pursuant to 12 O.S. §1148.1. 4. Plaintiff’s claims against Defendant arise out of a certain Lease Agreement (the "Lease") dated February 1, 2010, as amended and assigned, between Plaintiff, as Landlord, and Defendant, as Tenant, relating to the premises located at 503 W. Washington, Purcell, Oklahoma 73080 (the "Premises"). A copy of the confidential Lease can be made available upon request. 5. Venue is this matter is proper pursuant to 12 O.S. §§ 131 and 137. FACTS 6. Plaintiff incorporates and realleges the preceding paragraphs by reference as if fully set forth herein. 7. Plaintiff is the current owner of the Premises and is the successor-in-interest to the rights of the original landlord, CNL APF Partners, LP, a Delaware limited partnership, under the Lease. Plaintiff is the Lessor under the Lease. 8. Defendant is the Lessee under the Lease. 9. The fixed minimum rent owed by Defendant under the Lease is $5,082.00 per month, to be paid on or before the first day of each calendar month ("Base Rent"). In addition to the Base Rent, Defendant is obligated to pay its proportionate share of operating expenses, taxes, insurance, common area operation and maintenance expenses, and irrigation and landscaping costs ("Additional Rent") under the Lease. 10. Defendant is in default under the Lease as it has failed to pay its full amounts for Base Rent for several months, including September, October, November, and December 2025. Late Base Rent is also subject to a Late Fee under the Lease. The current amount due and owing is $44,820.86. Base Rent continues to accrue on the first day of each month until the Lease expires, plus applicable Late Fees and interest towards untimely payments. 11. Plaintiff delivered to Defendant a Notice of Default dated August 1, 2025, of Defendant’s default under the Lease for failure to pay Base Rent when due, which included a demand for immediate payment by Defendant to Plaintiff for all delinquent amounts upon receipt of the notice. A true and correct copy of the August 1, 2025 Notice is attached as Exhibit 1. 12. Plaintiff delivered to Defendant a second Notice of Default dated December 18, 2025, of Defendant’s default under the Lease for failure to pay Base Rent when due and owing, which included a demand for payment by Defendant to Plaintiff for all delinquent amounts, that amount being $44,802.86, within ten (10) days of Defendant’s receipt of the notice, and notified Defendant that Plaintiff would file this action if payment was not received. A true and correct copy of the December 18, 2025 notice is attached as Exhibit 2. 13. As of the date of the filing of this Petition, Defendant has not paid all amounts due and owing to Plaintiff under the Lease. COUNT I BREACH OF CONTRACT 14. Plaintiff incorporates and realleges the preceding paragraphs by reference as if fully set forth herein. 15. The Lease is a valid, binding, and enforceable contract between Plaintiff and Defendant. 16. Defendant has materially breached the terms of the Lease by failing to timely pay Base Rent and other costs due and owing to Plaintiff pursuant to the Lease. 17. As a direct and proximate result of Defendant’s breach and pursuant to the terms of the Lease, Plaintiff has suffered monetary damages in an amount to be determined at trial but in excess of $10,000.00. COUNT II FORCIBLE ENTRY AND DETAINER 18. Plaintiff incorporates and realleges the preceding paragraphs by reference as if fully set forth herein. 19. In addition to the current arrearage as described above, Plaintiff is seeking to recover possession of the Premises without termination of the Lease. 20. Defendant has breached the Lease and is in default of same by failing to timely pay Base Rent and other costs due and owing to Plaintiff pursuant to the Lease. 21. Plaintiff has, on more than one occasion, notified Defendant of its breaches and default under the Lease and informed Defendant of its intent to take corrective action. 22. Despite repeated demands, Defendant has failed to cure and continues to fail to timely cure its breaches and defaults under the Lease and/or vacate the Premises. 23. As a result, Plaintiff is entitled to possession of the Premises and Defendant should be removed from same. 24. Plaintiff reserves the right to bring one or more actions against Defendant for additional Base Rent, Additional Rent, and/or damages which are not included in any judgment rendered herein and which accrue after any such judgment as a result of Defendant’s default under the Lease. **PRAYER** WHEREFORE, Plaintiff prays for judgment against Defendant as follows: 1. Possession and control of the Premises identified herein; 2. Rents, fees, and other sums due and owing to Plaintiff pursuant to the Lease; 3. The costs of this action and reasonable attorneys’ fees in an amount to be determined by the Court; and 4. All other relief the Court deems just, proper, and equitable under the circumstances. Respectfully submitted, Margaret M. Sine, OBA #34024 HARTZOG CONGER CASON 201 Robert S. Kerr Avenue, Suite 1600 Oklahoma City, Oklahoma 73102 Telephone: (405) 235-7000 Facsimile: (405) 996-3403 [email protected] ATTORNEY FOR PLAINTIFF VERIFICATION STATE OF OKLAHOMA ) ) ss COUNTY OF OKLAHOMA ) Margaret M. Sine, being first duly sworn, upon oath deposes and says: That she is one of the attorneys for Plaintiff in the above-entitled action; that she prepared the above and foregoing Petition, noted the contents thereof, and that to the best of her knowledge and belief, the matters and things therein set forth are true and correct. Margaret M. Sine Subscribed and sworn to before me this 5th day of January, 2026. [signature] Notary Public My Commission Expires: OS-30-28 My Commission Number: 12005046 August 1, 2025 NOTICE OF DEFAULT Via FedEx and Email ([email protected]) Jill Filipiak OK Restaurant Holdings, LLC 500 E State Highway 114, Ste 300 Southlake, TX 76092 Re: Carl's Jr. #1101230 503 W Washington St, Purcell, OK 73080 ("Premises") (Our File #8923) Sbj: Notice of Default Dear Lessee: This letter is sent pursuant to the Notices section of that certain Lease Agreement dated February 1, 2010, as amended and assigned, if applicable (the "Lease") where ARC CAFEUSA001, LLC is the holder of Lessor's interest ("Lessor") and OK Restaurant Holdings LLC is the holder of Lessee's interest ("Lessee") for the Premises. Capitalized terms referenced in this letter without definition have the meaning ascribed to such terms in the Lease. The Lease commenced on February 1, 2010, and it expires on January 31, 2030. Lessee continues to occupy the Premises but has failed to pay Rent. Pursuant to Article 3 of the Lease, Base Monthly Rent ("Rent") is due on or before the first day of each month and Lessee owes Lessor a late fee if Lessor does not receive payment in full on or before the 5th day after the due date. Finally, pursuant to Article 10 of the Lease, Lessor may terminate Lessee's right of possession of the Premises for failure to pay Rent without terminating the Lease. Lessee's current outstanding balance is $41,195.30, and it is due immediately. A break-down of all sums due is enclosed for your information. Lessor is prepared to pursue any and all remedies under the Lease, including without limitation, recovery of attorney's fees, costs and all other related monetary damages. This letter is not intended as, and does not constitute, a waiver of any of Lessor's rights or remedies at law, in equity, and/or under the Lease or a waiver of any liability or obligation that Lessee may have to Lessor under the Lease. Nonetheless, Lessor is willing to discuss a possible resolution of this matter without the necessity of litigation. To that end, if Lessee is interested in pursuing resolution, please contact the undersigned at (858) 284-5215 within ten (10) days of the date of this letter. If this matter has not been resolved by that time, or if Lessor does not believe that it is making satisfactory progress toward resolution, Lessor may take legal action without further notice. Please give this matter your immediate attention. Sincerely, REALTY INCOME CORPORATION [Signature] Kyle B. Campbell Senior Vice President, Assistant General Counsel, Litigation, Risk & Commercial Encl. cc: (via email) Jeffrey Koerperick, SVP, Asset Management Jonathan Kresser, SVP Finance Operations Heather Robertson, AVP Accounts Receivable, Finance Operations Catherine Tiffany, Senior Director, Asset Management Gray Martin, Senior Analyst, Asset Management Vallerie Cavaness, Manager, Accounts Receivable Anna Zealy, Manager, Accounts Receivable Amanda Krewer, Manager, Property Tax Renee Sidhu, Property Tax Supervisor Ando Darbinyan, Rent Specialist Cristina Smith, Property Manager Jodi Nearing, Paralegal, Risk Management Lease Unpaid Charges Tenant: Carlisle (10017164) <table> <tr> <th>Date</th> <th>Document Seq. Number</th> <th>Description</th> <th>Ctrl</th> <th>Charge</th> <th>Tax</th> <th>Tax 2</th> <th>Total Amount</th> <th>Payment</th> <th>Net Due</th> <th>Balance</th> </tr> <tr><td>6/10/2024</td><td>20240010325</td><td>06:24 LAT</td><td>C-1328790</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>231.00</td></tr> <tr><td>6/10/2024</td><td>20240010336</td><td>06:24 INT</td><td>C-1328791</td><td>127.56</td><td>0.00</td><td>0.00</td><td>127.56</td><td>0.00</td><td>127.56</td><td>158.56</td></tr> <tr><td>7/10/2024</td><td>20240013896</td><td>07:24 LAT</td><td>C-1358626</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>589.56</td></tr> <tr><td>7/10/2024</td><td>20240013897</td><td>07:24 INT</td><td>C-1358627</td><td>104.21</td><td>0.00</td><td>0.00</td><td>104.21</td><td>0.00</td><td>104.21</td><td>693.77</td></tr> <tr><td>8/10/2024</td><td>20240015502</td><td>08:24 LAT</td><td>C-1384717</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>924.77</td></tr> <tr><td>8/10/2024</td><td>20240015509</td><td>08:24 INT</td><td>C-1384718</td><td>46.71</td><td>0.00</td><td>0.00</td><td>46.71</td><td>0.00</td><td>46.71</td><td>971.48</td></tr> <tr><td>9/10/2024</td><td>20240017117</td><td>09:24 LAT</td><td>C-1410672</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>1,202.48</td></tr> <tr><td>9/10/2024</td><td>20240017118</td><td>09:24 INT</td><td>C-1410673</td><td>95.22</td><td>0.00</td><td>0.00</td><td>95.22</td><td>0.00</td><td>95.22</td><td>1,297.70</td></tr> <tr><td>10/10/2024</td><td>20240018900</td><td>10:24 LAT</td><td>C-1438618</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>1,528.70</td></tr> <tr><td>10/10/2024</td><td>20240018908</td><td>10:24 INT</td><td>C-1438619</td><td>93.43</td><td>0.00</td><td>0.00</td><td>93.43</td><td>0.00</td><td>93.43</td><td>1,622.13</td></tr> <tr><td>11/10/2024</td><td>20240026671</td><td>11:24 INT</td><td>C-1466482</td><td>46.72</td><td>0.00</td><td>0.00</td><td>46.72</td><td>0.00</td><td>46.72</td><td>1,668.85</td></tr> <tr><td>11/10/2024</td><td>20240026674</td><td>11:24 LAT</td><td>C-1466484</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>1,899.65</td></tr> <tr><td>11/10/2025</td><td>20250003218</td><td>01:25 LAT</td><td>C-1523141</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>2,130.65</td></tr> <tr><td>11/10/2025</td><td>20250003219</td><td>01:25 INT</td><td>C-1523142</td><td>113.19</td><td>0.00</td><td>0.00</td><td>113.19</td><td>0.00</td><td>113.19</td><td>2,244.04</td></tr> <tr><td>2/1/2025</td><td>20250006356</td><td>Rent</td><td>C-158782</td><td>5,082.00</td><td>0.00</td><td>0.00</td><td>5,082.00</td><td>4,620.00</td><td>462.00</td><td>2,706.04</td></tr> <tr><td>2/1/2025</td><td>20250006095</td><td>02:25 LAT</td><td>C-1551191</td><td>254.10</td><td>0.00</td><td>0.00</td><td>254.10</td><td>0.00</td><td>254.10</td><td>2,960.14</td></tr> <tr><td>2/1/2025</td><td>20250005696</td><td>02:25 INT</td><td>C-1551192</td><td>161.16</td><td>0.00</td><td>0.00</td><td>161.16</td><td>0.00</td><td>161.16</td><td>3,121.30</td></tr> <tr><td>3/1/2025</td><td>20250004440</td><td>Rent</td><td>C-1544800</td><td>5,082.00</td><td>0.00</td><td>0.00</td><td>5,082.00</td><td>0.00</td><td>5,082.00</td><td>8,203.30</td></tr> <tr><td>3/1/2025</td><td>20250006484</td><td>02:25 LAT</td><td>C-1580032</td><td>254.10</td><td>0.00</td><td>0.00</td><td>254.10</td><td>0.00</td><td>254.10</td><td>8,457.40</td></tr> <tr><td>3/1/2025</td><td>20250006843</td><td>03:25 INT</td><td>C-1580033</td><td>147.51</td><td>0.00</td><td>0.00</td><td>147.51</td><td>0.00</td><td>147.51</td><td>8,604.91</td></tr> <tr><td>3/27/2025</td><td>20250006904</td><td>12:24 LAT</td><td>C-1580101</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td>0.00</td><td>231.00</td><td>8,835.91</td></tr> <tr><td>3/27/2025</td><td>20250006905</td><td>12:24 INT</td><td>C-1580102</td><td>93.43</td><td>0.00</td><td>0.00</td><td>93.43</td><td>0.00</td><td>93.43</td><td>8,929.34</td></tr> <tr><td>4/1/2025</td><td>20250006284</td><td>Rent (04/01/2025-04/30/2025)</td><td>C-1571958</td><td>5,082.00</td><td>0.00</td><td>0.00</td><td>5,082.00</td><td>4,620.00</td><td>462.00</td><td>9,391.34</td></tr> <tr><td>4/1/2025</td><td>20250008867</td><td>04:25 LAT</td><td>C-1624125</td><td>254.10</td><td>0.00</td><td>0.00</td><td>254.10</td><td>0.00</td><td>254.10</td><td>9,645.44</td></tr> <tr><td>4/1/2025</td><td>20250008868</td><td>04:25 INT</td><td>C-1624126</td><td>128.64</td><td>0.00</td><td>0.00</td><td>128.64</td><td>0.00</td><td>128.64</td><td>9,774.08</td></tr> <tr><td>5/1/2025</td><td>20250008194</td><td>Rent</td><td>C-1616644</td><td>5,082.00</td><td>0.00</td><td>0.00</td><td>5,082.00</td><td>0.00</td><td>5,082.00</td><td>14,856.08</td></tr> <tr><td>5/1/2025</td><td>20250106015</td><td>05:25 LAT (05/01/2025-05/31/2025)</td><td>C-1701083</td><td>254.10</td><td>0.00</td><td>0.00</td><td>254.10</td><td>0.00</td><td>254.10</td><td>15,110.18</td></tr> <tr><td>5/1/2025</td><td>20250106016</td><td>05:25 INT (05/01/2025-05/31/2025)</td><td>C-1701084</td><td>167.09</td><td>0.00</td><td>0.00</td><td>167.09</td><td>0.00</td><td>167.09</td><td>15,277.27</td></tr> <tr><td>6/1/2025</td><td>20250106235</td><td>Rent (06/01/2025-06/30/2025)</td><td>C-1697305</td><td>5,082.00</td><td>0.00</td><td>0.00</td><td>5,082.00</td><td>0.00</td><td>5,082.00</td><td>20,359.27</td></tr> <tr><td>6/1/2025</td><td>20250106818</td><td>06:25 INT (06/01/202 December 18, 2025 VIA CERTIFIED MAIL AND EMAIL OK Restaurant Holdings, LLC c/o Jill Filippiak ([email protected]) 500 E State Highway 114, Suite 300 Southlake, TX 76092 OK Restaurant Holdings, LLC 7 Village Circle, Suite 300 Westlake, TX 76262 NOTICE OF DEFAULT OK Restaurant Holdings, LLC Re: Notice of Default under Lease Agreement dated February 1, 2010 (the "Lease"), as amended and assigned from CNL APF Partners, LP, a Delaware limited partnership, to ARC CAFEUSA001, LLC, a Delaware limited liability company ("Landlord") and from Star Chasers Oklahoma, Inc., an Oklahoma corporation, to OK Restaurant Holdings, LLC, a Delaware limited liability company ("Tenant"), for the premises located at 503 W. Washington, Purcell, Oklahoma 73080 (the "Premises"). Capitalized terms used herein but not otherwise defined shall have the meanings assigned to such terms in the Lease. Tenant: This firm represents Landlord with respect to the above-referenced Lease. Pursuant to the terms of the above-referenced Lease, you are required to pay Base Rent under the Lease on or before the first day of each calendar month during the Term. You are currently in default of this obligation for failing to make timely payment of Base Rent on December 1, 2025, as well as in prior months. You also received a Notice of Default, a copy of which is enclosed herewith, on August 1, 2025, related to your failure to timely pay Base Rent. Pursuant to Article 3.5 of the Lease, Tenant owes Landlord default interest at the Default Rate on any amounts not paid to Landlord, including Base Rent, from its due date until paid in full. In addition, pursuant to Article 3.6 of the Lease, Tenant owes Landlord a Late Fee if Landlord does not receive payment of Base Rent in full on or before the fifth day after its due date. Accordingly, Tenant is in arrears in the amount of $44,802.86. According to Article 10.1(a) of the Lease, failure by Tenant to pay Rent when due and the continuation of such failure for ten (10) days after Tenant's receipt of written demand from Landlord shall constitute an Event of Default. Consequently, this letter shall serve as Landlord's demand for payment of all delinquent Rent, and all delinquency charges, and written notice of your failure to make the foregoing payment of Rent when due and owing. If full payment is not received by Landlord within ten (10) days of your receipt of this written notice, Landlord shall proceed with any and all remedies available under the Lease and applicable law, including, but not limited to, terminating your right to possession of the Premises. Should you have any questions, please feel free to contact Landlord directly or have your legal counsel contact me by phone at (405) 235-7000 or by email at [email protected]. Sincerely, HARTZOG CONGER CASON Margaret M. Sine Encl. cc: Mike DiGiacomo ([email protected]) August 1, 2025 NOTICE OF DEFAULT Via FedEx and Email ([email protected]) Jill Filipiak OK Restaurant Holdings, LLC 500 E State Highway 114, Ste 300 Southlake, TX 76092 Re: Carl's Jr. #1101230 503 W Washington St, Purcell, OK 73080 ("Premises") (Our File #8923) Sbj: Notice of Default Dear Lessee: This letter is sent pursuant to the Notices section of that certain Lease Agreement dated February 1, 2010, as amended and assigned, if applicable (the "Lease") where ARC CAFEUSA001, LLC is the holder of Lessor's interest ("Lessor") and OK Restaurant Holdings LLC is the holder of Lessee’s interest ("Lessee") for the Premises. Capitalized terms referenced in this letter without definition have the meaning ascribed to such terms in the Lease. The Lease commenced on February 1, 2010, and it expires on January 31, 2030. Lessee continues to occupy the Premises but has failed to pay Rent. Pursuant to Article 3 of the Lease, Base Monthly Rent ("Rent") is due on or before the first day of each month and Lessee owes Lessor a late fee if Lessor does not receive payment in full on or before the 5th day after the due date. Finally, pursuant to Article 10 of the Lease, Lessor may terminate Lessee’s right of possession of the Premises for failure to pay Rent without terminating the Lease. Lessee’s current outstanding balance is $41,195.30, and it is due immediately. A break-down of all sums due is enclosed for your information. Jill Filipiak OK Restaurant Holdings, LLC August 1, 2025 Page 2 of 2 Lessor is prepared to pursue any and all remedies under the Lease, including without limitation, recovery of attorney's fees, costs and all other related monetary damages. This letter is not intended as, and does not constitute, a waiver of any of Lessor's rights or remedies at law, in equity, and/or under the Lease or a waiver of any liability or obligation that Lessee may have to Lessor under the Lease. Nonetheless, Lessor is willing to discuss a possible resolution of this matter without the necessity of litigation. To that end, if Lessee is interested in pursuing resolution, please contact the undersigned at (858) 284-5215 within ten (10) days of the date of this letter. If this matter has not been resolved by that time, or if Lessor does not believe that it is making satisfactory progress toward resolution, Lessor may take legal action without further notice. Please give this matter your immediate attention. Sincerely, REALTY INCOME CORPORATION [Signature] Kyle B. Campbell Senior Vice President, Assistant General Counsel, Litigation, Risk & Commercial Encl. cc: (via email) Jeffrey Koerperick, SVP, Asset Management Jonathan Kresser, SVP Finance Operations Heather Robertson, AVP Accounts Receivable, Finance Operations Catherine Tiffany, Senior Director, Asset Management Gray Martin, Senior Analyst, Asset Management Vallerie Cavaness, Manager, Accounts Receivable Anna Zealy, Manager, Accounts Receivable Amanda Krewer, Manager, Property Tax Renee Sidhu, Property Tax Supervisor Ando Darbinyan, Rent Specialist Cristina Smith, Property Manager Jodi Nearing, Paralegal, Risk Management Lease Unpaid Charges Tenant: Carla J. (10097164) <table> <tr> <th>Date</th> <th>Document Seq. Number</th> <th>Description</th> <th>Chrg</th> <th>Tax</th> <th>Tax 2</th> <th>Total Amount</th> <th>Payment</th> <th>Net Due</th> <th>Balance</th> </tr> <tr><td>6/10/2024</td><td>224509023375</td><td>06-24 LAT</td><td>137.85</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>231.00</td></tr> <tr><td>8/10/2024</td><td>222460032386</td><td>06-24 YLT</td><td>177.76</td><td>0.00</td><td>0.00</td><td>127.56</td><td></td><td>127.56</td><td>358.56</td></tr> <tr><td>7/10/2024</td><td>222450038360</td><td>07-24 LAT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>589.56</td></tr> <tr><td>7/10/2024</td><td>222450038361</td><td>07-24 YLT</td><td>104.21</td><td>0.00</td><td>0.00</td><td>104.21</td><td></td><td>104.21</td><td>693.77</td></tr> <tr><td>8/10/2024</td><td>222450038362</td><td>08-24 LAT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>924.77</td></tr> <tr><td>8/10/2024</td><td>222450038363</td><td>08-24 YLT</td><td>46.71</td><td>0.00</td><td>0.00</td><td>46.71</td><td></td><td>46.71</td><td>971.48</td></tr> <tr><td>9/10/2024</td><td>222450038364</td><td>09-24 LAT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>1,202.48</td></tr> <tr><td>9/10/2024</td><td>222450038365</td><td>09-24 YLT</td><td>95.22</td><td>0.00</td><td>0.00</td><td>95.22</td><td></td><td>95.22</td><td>1,297.70</td></tr> <tr><td>10/10/2024</td><td>222450038366</td><td>10-24 LAT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>1,528.70</td></tr> <tr><td>10/10/2024</td><td>222450038367</td><td>10-24 YLT</td><td>93.43</td><td>0.00</td><td>0.00</td><td>93.43</td><td></td><td>93.43</td><td>1,622.13</td></tr> <tr><td>11/10/2024</td><td>222450038368</td><td>11-24 LAT</td><td>46.72</td><td>0.00</td><td>0.00</td><td>46.72</td><td></td><td>46.72</td><td>1,668.85</td></tr> <tr><td>11/10/2024</td><td>222450038369</td><td>11-24 YLT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>1,899.85</td></tr> <tr><td>11/10/2024</td><td>222450038370</td><td>11-24 LAT</td><td>113.19</td><td>0.00</td><td>0.00</td><td>113.19</td><td></td><td>113.19</td><td>2,013.04</td></tr> <tr><td>11/10/2024</td><td>222450038371</td><td>11-24 YLT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>2,244.04</td></tr> <tr><td>2/10/2025</td><td>222500028366</td><td>Rent</td><td>646.20</td><td>0.00</td><td>0.00</td><td>646.20</td><td>446.20</td><td>446.20</td><td>2,706.04</td></tr> <tr><td>3/10/2025</td><td>222500028367</td><td>02-25 LAT</td><td>234.10</td><td>0.00</td><td>0.00</td><td>234.10</td><td></td><td>234.10</td><td>2,940.14</td></tr> <tr><td>3/10/2025</td><td>222500028368</td><td>02-25 YLT</td><td>161.16</td><td>0.00</td><td>0.00</td><td>161.16</td><td></td><td>161.16</td><td>3,112.10</td></tr> <tr><td>3/10/2025</td><td>222500028369</td><td>Rent</td><td>508.20</td><td>0.00</td><td>0.00</td><td>508.20</td><td>308.20</td><td>308.20</td><td>3,420.30</td></tr> <tr><td>3/10/2025</td><td>222500028370</td><td>03-25 LAT</td><td>234.10</td><td>0.00</td><td>0.00</td><td>234.10</td><td></td><td>234.10</td><td>3,654.40</td></tr> <tr><td>3/10/2025</td><td>222500028371</td><td>03-25 YLT</td><td>147.51</td><td>0.00</td><td>0.00</td><td>147.51</td><td></td><td>147.51</td><td>3,801.91</td></tr> <tr><td>3/10/2025</td><td>222500028372</td><td>03-25 LAT</td><td>231.00</td><td>0.00</td><td>0.00</td><td>231.00</td><td></td><td>231.00</td><td>3,832.91</td></tr> <tr><td>3/10/2025</td><td>222500028373</td><td>03-25 YLT</td><td>93.43</td><td>0.00</td><td>0.00</td><td>93.43</td><td></td><td>93.43</td><td>3,926.34</td></tr> <tr><td>4/10/2025</td><td>222500028374</td><td>Rent 04 03 2025</td><td>508.20</td><td>0.00</td><td>0.00</td><td>508.20</td><td>308.20</td><td>308.20</td><td>4,191.34</td></tr> <tr><td>4/10/2025</td><td>222500028375</td><td>04-25 LAT</td><td>234.10</td><td>0.00</td><td>0.00</td><td>234.10</td><td></td><td>234.10</td><td>4,425.44</td></tr> <tr><td>4/10/2025</td><td>222500028376</td><td>04-25 YLT</td><td>128.64</td><td>0.00</td><td>0.00</td><td>128.64</td><td></td><td>128.64</td><td>4,554.08</td></tr> <tr><td>5/10/2025</td><td>222500028377</td><td>Rent</td><td>508.20</td><td>0.00</td><td>0.00</td><td>508.20</td><td>308.20</td><td>308.20</td><td>4,862.08</td></tr> <tr><td>5/10/2025</td><td>222500028378</td><td>05-25 LAT</td><td>234.10</td><td>0.00</td><td>0.00</td><td>234.10</td><td></td><td>234.10</td><td>5,096.18</td></tr> <tr><td>5/10/2025</td><td>222500028379</td><td>05-25 YLT</td><td>167.59</td><td>0.00</td><td>0.00</td><td>167.59</td><td></td><td>167.59</td><td>5,263.77</td></tr> <tr><td>6/10/2025</td><td>222500028380</td><td>Rent 06 03 2205</td><td>508.20</td><td>0.00</td><td>0.00</td><td>508.20</td><td>308.20</td><td>308.20</td><td>5,532.07</td></tr> <tr><td>6/10/2025</td><td>222500028381</td><td>06-25 LAT</td><td>123.31</td><td>0.00</td><td>0.00</td><td>123.31</td><td></td><td>123.31</td><td>5,655.38</td></tr> <tr><td>6/10/2025</td><td>222500028382</td><td>06-25 YLT</td><td>254.10</td><td>0.00</td><td>0.00</td><td>254.10</td><td></td><td>254.10</td><td>5,909.48</td></tr> <tr><td>7/10/2025</td><td>222500028383</td><td>Rent 07 03 2025</td><td>508.20</td><td>0.00</td><td>0.00</td><td>508.20</td><td>308.20</td><td>308.20</td><td>6,117.68</td></tr> <tr><td>7/10/2025</td><td>222500028384</td><td>07-25 LAT</td><td>915.72</td><td>0.00</td><td>0.00</td><td>915.72</td><td></td><td>915.72</td><td>6,453.40</td></tr> <tr><td>7/10/2025</td><td>222500028385</td><td>07-25 YLT</td><td>756.89</td><td>0.00</td><td>0.00</td><td>756.89</td><td></td><td>756.89</td><td>7,203.29</td></
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