Possession of Sleepy Hollow disputed
The dispute over who owns the Sleepy Hollow Tavern on Route 30 in Ligonier Township hasn't been settled, but a Westmoreland County judge has issued an order keeping the two warring sides at arms length until a deal to buy the longtime landmark is reached.
Owner Robert Bazala, of Ligonier, has been trying to reclaim ownership of the Sleepy Hollow from Charles "Chip" Santone, his wife, Evelyn; and daughter, Gina Manners; who agreed to buy the business but have yet to complete the purchase. The Santones and Manners continue to manage the facility and won't allow Bazala on the property.
Santone filed a request for an injunction last Friday against Bazala to stop him from reclaiming the business. In August, Bazala had sought an injunction against Santone to prevent him from continuing to operate the business after Santone stopped making the required $5,000-a-month payments. That request was withdrawn by Bazala, according to court records.
Judge Daniel Ackerman Tuesday ordered both sides to stay away from the other until a closing date has been scheduled and the business is sold.
Ackerman's order prevents Bazala from entering his property and stops Santone from removing any of Bazala's property from the place. Santone said he has had to call the state police and hired guards to stop Bazala from removing equipment.
Bazala sued Santone for breach of contract and misrepresentation for failing to follow through on a promise to buy the business and to transfer the ownership of the liquor license into the name of his corporation, Sleepy Hollow Investments.
Because the sale hasn't gone through, Bazala faces the loss of Sleepy Hollow at a sheriff's sale on Nov. 9 if Santone doesn't buy it. A closing was scheduled for Oct. 20 but Santone, according to court records, asked for a delay and paid Bazala with a $5,000 check that bounced.
The two sides signed a sales agreement in March, the lawsuit states. In April, the Santones formed Sleepy Hollow Investments and Sleepy Hollow Management to finance the sale of the tavern, according to state corporation records.
The lawsuit alleges that under the terms of the agreement, the Santones agreed to buy Sleepy Hollow for $815,000. As part of the deal, they agreed to pay Bazala $10,000 as a down payment and $5,000 a month until the sale was completed and Bazala's liquor license was transferred to the Santones' company.
In April, First Commonwealth Bank filed a foreclosure against Bazala for defaulting on a mortgage that he took out in 2002. In June, a judgment was entered against Bazala for nearly $584,000.
Santone, who formerly owned St. Clair Supply in Greensburg in the 1990s, has had financial problems in the past stemming from management of his former business. In 1999, he was sentenced to serve one to two years in prison after pleading guilty to willful failure to pay sales taxes, failing to pay withholding taxes and failure to file state income tax returns. The state Department of Revenue said Santone owes more than $374,900 in state taxes.
