Shreveport, La. – The former owners of Dripp Donuts are taking legal action against their property owners, claiming they were not informed about the building’s poor condition, which led to an abrupt closure due to instability.
Dripp Donuts has filed a lawsuit against the Downtown Shreveport Development Corp. (DSDC) and its affiliate, DSDC2. DSDC2, a non-profit focused on downtown revitalization, owns the property located at Texas and Market streets where Dripp Donuts launched its first store.
The lawsuit alleges that Dripp Donuts is entitled to financial compensation. According to the suit, the donut shop invested over $390,000 in the building and its operations, and was required to demonstrate it had sufficient funds for this investment.
The lease, which began on August 12, 2022, led to the opening of Dripp Donuts on March 4, 2023. Less than a year later, in February 2024, Dripp Donuts notified DSDC2 of a growing crack in the north wall, visible both inside and outside the building.
In response, DSDC2 hired an engineering firm that recommended the building be demolished. The firm reported that the building’s load-bearing walls were unstable due to deteriorated mortar and the absence of shear walls.
Dripp Donuts was evicted on March 1, 2024, the same day DSDC2 placed “caution” tape around the building. Barricades and I-beams for additional support were installed three days later.
Dripp Donuts later discovered that another engineer had also recommended demolition in a report dated June 5, 2013.
The lawsuit claims that DSDC2 should have been aware of the building’s structural issues before the lease was signed. An email from September 29, 2020, addressed concerns about water infiltration and roof damage. Another email from March 15, 2021, mentioned previous repairs that worsened the building’s condition.
The building was demolished on May 5, 2024. Dripp Donuts argues that the lease, which had a potential duration of 10 years, was compromised by DSDC2’s failure to provide a suitable property.
Dripp Donuts is seeking compensation for lease build-out costs of $809, build-out labor of $49,600, moving and storage expenses of $5,174, and additional costs incurred after March 1, including interest on a credit line, contract buyout, insurance, utilities, as well as attorney fees and litigation expenses.