Former Crowbar operator files lawsuit

SANDUSKY — A former tavern operator recently filed suit in Erie County against the property's former owner, claiming the owner breached an agreement. Rainbow Kitten, an organization registered with Ohio's Secretary of State, operated the Crowbar in the 200 block of W. Market St. in Sandusky between 2020 and 2025. The named defendant is the owner of the property, located at 206 W. Market St: Crowbar Rentals, LLC and Michael Shullick, both with Huron addresses. What happened? Crowbar was a longtime downtown Sandusky tavern and bar. In May, the business was shuttered by the building owner. A sign taped to the front door said that the "titled owner, Crowbar Rentals LLC," repossessed the building and asserted that the property was under its lawful control and possession. Messages left with Shullick and Rainbow Kitten representative Cynthia Gunderson went unanswered. What does the lawsuit claim? In the suit, filed at the end of October, Rainbow Kitten claimed it had an option to purchase the building from Crowbar Rentals. Rainbow Kitten's attorney informed Shullick's attorney in December 2024 of its plans to exercise that option, according to the filing. While preparing to execute the option, Rainbow Kitten alleged it found numerous state tax liens against the building filed with the Erie County Clerk of Courts. A tax lien is a legal instrument that encumbers a property or parcel when its owner incurs a debt to another party. Liens must be satisfied and released prior to selling the property. In extreme cases, a lien holder can force the sale of the property through a sheriff's auction to satisfy the debt owed. The lawsuit further alleged that it found a $59,000 federal tax lien against Shullick personally but with an address that is an apartment above the tavern. That lien was filed with the Erie County recorder and states, "There is a lien in favor of the U.S. on all property and rights to property belonging to this taxpayer for the amount of these taxes." A part of the lease signed by the two parties for Rainbow Kitten to operate the bar included language that states Crowbar Rentals "shall be solely responsible for payment of all debts, charges and other expenses and liabilities arising or accruing prior to the effective date which were associated with (Crowbar Rentals') operation of the business," according to the suit. Both the property lease with option to purchase and a management agreement were entered into by the parties on Feb. 3, 2020, according to court records. Rainbow Kitten said it found two other liens, totalling $1,600 overall, from state agencies filed against the bar in 2023 and 2024. The liens filed against the business in April 2019, before the effective date of the parties' agreements, were released in early October, about two months after the property was sold to Havinfun, LLC. That business is an entity that owns numerous properties throughout Erie County, according to the auditor's office. Those properties include the ones that house the Shore House Tavern and Landmark restaurants. Being in the fourth year of their agreement, it appears Rainbow Kitten could have exercised its option to purchase the property for about $160,000, according to a reading of the lease. If the defendant was responsible for liens filed against the business, then the net sales price would be far less. This means that the amount of money Shullick would receive from a sale would be diminished by the amount required to pay off the liens. After evicting Rainbow Kitten in May, Shullick sold the property to Havinfun for $350,000 in August, according to the Erie County auditor. Rainbow Kitten is asking for a judgment in its favor for at least $600,000, according to the lawsuit. As of this week, Shullick has not filed an answer to the suit with the court. In Ohio, defendants are granted 28 days to answer a civil complaint from either the date they are served or the date the complaint was mailed.