Purple Palace drama: Man sues his grandmother over ownership of York Beach breakfast spot

YORK, Maine — The Purple Palace is closed this summer after 46 years at Short Sands Beach amid a legal battle between the longtime owner and her grandson, who claims she sold it to him.

Jared Rosenfield thought he owned the building at 1 Railroad Ave. and the breakfast place his grandmother ran since 1976 when a real estate agent entered the establishment in July 2022, according to a lawsuit Rosenfield filed in York Superior Court last November. Rosenfield’s grandmother, Sandra Wilson, sent the agent to take pictures of the building, as it was about to be put on the market, according to the suit.

Wilson disputes ever agreeing to sell the building to Rosenfield. In a counterclaim, her attorney states she only agreed to sell the business, not the building. At 86 years old this year, she claims she was looking to retire and have her grandson take over the restaurant, but he failed to make payments, nullifying any agreement.

Now, the case is being scheduled for a jury trial, according to a York County Superior Court clerk. Rosenfield said prior to the suit he was looking forward to running the breakfast place for generations, joined by his wife Elma as the new face of the restaurant.

Rosenfield did not explicitly state in his lawsuit if he wanted to retain ownership of the building. His suit does ask a judge to award him damages, including $40,000 that he has already paid to Wilson. He declined to speak and deferred comment to his attorney Brett Leland, who declined to comment.

Wilson is asking for damages she alleges she sustained from Rosenfield, including missed payments and profits from the restaurant while it was open under his management. She also alleges that Rosenfield damaged the apartment they rented from her and that they were trespassing on the restaurant property when they refused to leave.

Wilson declined to speak directly about the lawsuit this week, but she said she does plan to sell the building. She said she had hopes in the beginning that the arrangement with Rosenfield would work out.

“I tried very hard, you know, to have family work there,” Wilson said. “It just didn’t work out.”

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Jared Rosenfield grew up enjoying the Purple Palace when he visited his grandmother in York from his home in Florida, according to his lawsuit. He grew up to establish a career in California as a salesman in a production-based company, but loved the idea of taking over the Purple Palace when his grandmother offered, his attorney Leland wrote.

Rosenfield claims in his suit that a verbal agreement was reached to buy the building and restaurant in 2021, in which Rosenfield would pay Wilson $450,000 over 15 years in $30,000 installments. The suit states the Rosenfields took over the restaurant that summer and the terms of the verbal agreement were finalized in writing on May 16, 2022.

“It was his intent to keep running the restaurant for decades and to hopefully pass it down to his son someday,” Rosenfield’s attorney wrote.

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Wilson disputes terms of the deal, leads to ‘deteriorated relationship’

Rosenfield alleges the Realtor who visited the restaurant in July 2022 was the first sign that something was not right with his relationship with his grandmother, according to the lawsuit. Leland wrote that this was the beginning of a series of “malicious” attempts by his grandmother to “pull the rug” out from the Rosenfields.

In August, the suit states Wilson’s attorney sent a letter stating the Rosenfields were operating the restaurant under an “informal agreement.” The attorney wrote they were no longer authorized to do so and must vacate the property, according to the suit.

Later that month, the suit states Wilson sent a sheriff to enter the restaurant with customers there with a notice to quit. The notice stated Wilson would bring a forcible entry and detainer action if Rosenfield did not vacate the premises within 30 days.

“Premises that he owns,” attorney Leland wrote.

Wilson's response filed by her attorney acknowledges she discussed selling the restaurant and property to Rosenfield but “never reached an agreement on the same.” She said she only offered to have Rosenfield help her run the restaurant in 2021 as she contemplated retirement. That summer, she wrote that Rosenfield worked alongside her.

“Sandra wanted to see how things went with Mr. Rosenfield managing and running day-to-day operations of the restaurant before deciding whether to sell the restaurant, property, or both,” wrote her attorney, Alexander Spadinger.

Wilson’s legal filing acknowledges an agreement was signed on May 16, 2022, but it was only a business sale agreement. She claims the deal was for Rosenfield to take the business in return for $40,000 paid in $10,000 installments while she remained landlord.

“The business sale agreement contemplates only the sale of the business, aka the restaurant, and does not contemplate the sale of the property,” Spadinger wrote.

Spadinger wrote the relationship began to “deteriorate” as Rosenfield allegedly failed to make a $10,000 payment in June 2022. He stated that Rosenfield eventually gave his grandmother a check for $10,000 but it bounced.

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Iconic restaurant Purple Palace could be finished

Wilson’s father, Harry Riback, ran another restaurant at Short Sands Beach starting in the 1940s, called the York Restaurant. Wilson took over the restaurant, renaming it the Purple Palace.

Wilson believes the restaurant will not return as the Purple Palace. She said she expects to sell the building to someone who will use the space for something other than a restaurant, possibly a gift shop. She said she enjoyed the years of running the restaurant like an “assembly line.”

Wilson said she has been asked about reopening the Purple Palace. However, at 86, she said she can no longer do it. She said she misses the people who came with generations of their family to see them each summer at the population vacation spot.

“It’s a very important item,” Wilson said of the Purple Palace. “It’s a shame that it has to be sold.”

This article originally appeared on Portsmouth Herald: Purple Palace family feud: Lawsuit behind York Beach eatery's closure