By Vicki Vaughan

Express-News Business Writer

A San Antonio-based restaurant company has won a $14.9 million jury award against pizza chain Little Caesars Enterprises in a breach-of-agreement trial in McAllen.

The company, Renaissant Development Corp., is the franchisee for 15 Little Caesars restaurants in the Rio Grande Valley.

Renaissant contended in the trial that it had a Los Angeles buyer for its pizzerias in 1995, but Detroit-based Little Caesars declined to give it permission to sell.

That constituted breach of agreement, Renaissant's lawyers argued in U.S. District Court in McAllen.

"There's nothing wrong with Little Caesars exercising quality control and saying they have the right to approve who franchisees sell to," said Renaissant's lawyer, Michael Caddell of Houston. "But they don't have the right to withhold consent to steal a deal for themselves."

Caddell said that in 1995, about five months after Renaissant said it wanted to sell to A.T. Mallad Enterprises of Los Angeles, Little Caesars sold 116 of its Los Angeles restaurants to the same buyer.

Renaissant owner Anthony Alvarez said he was delighted by the jury's verdict.

"I feel like I've been vindicated," he said.

Little Caesars lawyer Steve Susman of Houston, was unavailable for comment. Calls placed to Little Caesars headquarters were not returned.

Alvarez said he's also pleased that the jury agreed with his contention that Little Caesars caused another of his deals to go awry.

He planned to sell his Little Caesars locations because Applebee's was offering him the chance to buy territories in Texas for as many as 15 to 20 new restaurants.

Alvarez said he would have gained $3.1 million — including $1.1 million in cash — by selling the 15 Little Caesars restaurants. He told Little Caesars he wanted to use the cash to buy new Applebee's territories.

When Alvarez failed to sell his pizzerias, Applebee's offered its territories to others, "and I missed my window of opportunity," Alvarez said.

Renaissant has four Applebee's restaurants in the Rio Grande Valley and one each in Laredo and Victoria.

The jury, following a two-week trial, ordered Little Caesars to pay Renaissant $11.2 million in damages because of the failed Applebee's deal, along with $3.1 million because he wasn't able to sell the pizzerias. The jury also awarded $600,000 for other damages.

Alvarez founded Renaissant in the Rio Grande Valley, but moved the company's headquarters to San Antonio in 1995.

In addition to the 15 Little Caesars and Applebee's restaurants, Renaissant owns three On the Border restaurants in San Antonio.

Thursday, Nov 5, 1998