SEATTLE NEWS ARCHIVES & FEATURES

Mercer Island gym owner unable to pay rent due to COVID, being sued for $350,000

Apr 5, 2021, 2:31 PM | Updated: Apr 6, 2021, 6:55 am

A Mercer Island fitness studio owner assigned the lease of the studio to an employee, while remaining on the lease, and as a result of the COVID pandemic wound up being sued by the large managing property company due to unpaid rent. She joined the Dori Monson Show to recount what happened.

“I kept in close contact with this person and she’s a very good friend of mine, and still is. … Business was going great, and growing. And then, of course, last year we had to shut down for two weeks, and we all know what happened. So without going into details, she had tried to negotiate with the landlord, who happens to be a very large real estate investment trust that’s located out of California,” Michelle said.

Even with the small capacity opening, business was not sustainable, and the ownership company was unwilling to budge from its position.

“It wasn’t getting a great response,” she described. “They basically were getting back to her and saying, ‘Well, we can differ rent for you or we can discuss different rent deferment but we are not in a position to renegotiate your lease.’ We were able to reopen in a small capacity in the summer of last year. But because of the square footage requirements, that would have meant that she would have only been able to have maybe three or four people in class — it just wasn’t financially workable.”

Washington gym owner claims his insurance rates have gone up 1,000%

The situation only got worse and the business had to close, and because Michelle was still technically on the lease, she become liable when a lawsuit emerged.

“I had to stay on the lease but was able to assign it. But I was still held liable. And I knew this,” she said. “None of us could have predicted that this pandemic would happen, and it was not our intent to walk away. It was certainly not my friend’s intent to walk away at all — she tried everything she could to get them to renegotiate her lease from her. She lost more than half of her clients within the first 60 days.”

Tacoma family loses house to fire, then has remaining belongings stolen

“She had said (to the property company) ‘if you don’t agree to my terms, I have will have no choice but to close.’ So she did move out at the end of November, and we received a letter in December, right before Christmas, that said that we were in default,” she said. “We had essentially abandoned the premises and defaulted on our lease, and that if we could pay them $250,000 by January 1, that they would drop everything. Well, we didn’t have $250,000, and this was December 22 that they sent this letter. So then on January 17, that was when they served the lawsuit to us.”

The full lawsuit is for $350,000. Michelle says she is working several jobs to try and deal with the legal fees from the lawsuit, and her lawyers sent an email pleading with the company to drop the lawsuit, but to no avail.

“They did respond, and they said, ‘My client has every intention of prosecuting this case to its fullest to all liable parties.’ So they have no intention of dropping it. Best case scenario, as I understand it, is they could give a judgment of default, which would follow me for 10-20 years, based on how long they decided that would last,” she said.

“The other option is to file bankruptcy, but that’s not even a guarantee,” she added. “I am working several jobs because I’m trying to fight this, and they have hired one of the most high-profile law firms in town.”

Listen to the Dori Monson Show weekday afternoons from noon – 3 p.m. on KIRO Radio, 97.3 FM. Subscribe to the podcast here.

FILE - Ukraine's President Volodymyr Zelenskyy looks on during his meeting with U.S. President Dona...

Associated Press

Zelenskyy details rift with dismissed defense minister, saying some of his actions were misguided

KYIV, Ukraine (AP) — Ukrainian President Volodymyr Zelenskyy said he believes actions taken by dismissed Defense Minister Mykhailo Fedorov, including his involvement in mass protests and calls for elections, were misguided, as he publicly detailed their dispute for the first time. Zelenskyy also alluded to problematic decisions over defense spending and said inaccurate information provided […]

46 minutes ago

A customer walks into Beaver's Mini Mart in Beavercreek, Ohio, Friday, Aug. 14, 2026. (AP Photo/Jul...

Associated Press

Buc-ee’s chain draws outcry in Ohio for launching fight over a mini mart’s beaver logo

BEAVERCREEK, Ohio (AP) — A lip-licking alligator, a smiling moose and a hat-wearing bear are among the many cartoon animals to have found themselves in the crosshairs of Buc-ee’s, the popular Texas convenience store chain that has a penchant for protecting its buck-toothed beaver. But now Buc-ee’s has set off a Buckeye backlash across Ohio […]

5 hours ago

A crew does mop-up work in a burned area of Wyakin Park after a wildfire hit the northern part of S...

Associated Press

Officials warn wildland firefighters about the risks of using a supplement for smoke exposure

SEATTLE (AP) — Fire and medical officials have issued warnings about a supplement offered to Western wildland firefighters who have been exposed to toxic chemicals while battling some of the country’s biggest blazes. The supplement glutathione, given through an IV or an inhaler-like machine called a nebulizer, has not been proven to be safe or […]

6 hours ago

Associated Press

Union for Boston Symphony Orchestra musicians authorizes first strike in ensemble’s 145-year history

LENOX, Mass. (AP) — The union for Boston Symphony Orchestra musicians authorized the first strike in the ensemble’s 145-year history on Saturday. The Boston Musicians’ Association issued a statement ahead of the expiration of the union’s three-year contract at 11:59 p.m. Sunday. The orchestra and management have had strained relations since BSO decided in March […]

7 hours ago

Andrew Anthony III and Kala Hayes, parents of Karmelo Anthony, exit following closing arguments in ...

Associated Press

Texas judge denies Karmelo Anthony’s request for new trial in deadly stabbing at track meet

DALLAS (AP) — A Texas judge denied a new trial for Karmelo Anthony on Saturday in the stabbing death of a 17-year-old athlete at a high school track meet, a killing that drew national attention and led to harassment of the families. Anthony, 19, was convicted of murder in June and sentenced to 35 years […]

12 hours ago

A Canadian flag flies on Parliament Hill in Ottawa on Saturday, Aug. 22, 2026. (Patrick Doyle/The C...

Associated Press

What to know about Trump’s 50% tariffs on Canadian goods that just went into effect

CHICAGO (AP) — After trade negotiations crumbled at the eleventh hour, U.S. President Donald Trump’s 50% tariffs on scores of Canadian imports kicked in Saturday. The new levies are expected to affect about 5% of Canada’s annual exports to the U.S., roughly $20 billion in goods ranging from hockey sticks to agricultural products. Canada’s Prime […]

14 hours ago

Mercer Island gym owner unable to pay rent due to COVID, being sued for $350,000