Food war ends in temporary truce

A battle between two hip Auckland restaurants has led to a temporary court-agreed truce.

The new owners of Verona Cafe wanted to have The Musket Room closed down in a dispute over a restraint-of-trade clause fought out in the Auckland District Court.

The bid failed, but as part of conditions allowing it to remain open, The Musket Room was this week forced to switch from being a restaurant to a bar serving tapas.

Verona, on Karangahape Rd, was owned by Hilary Ord and Janet Sergeant for 12 years until they sold it last June to Lisa and Robin Churchman.

The sale agreement included a restraint-of-trade clause, which the Churchmans say included measures that prevented a similar business being set up within 1.75km of Verona for two years.

Within months, Ms Ord and her long-time Verona maitre d', Mel Anderson, had set up The Musket Room on Ponsonby Rd, serving what the Herald restaurant reviewer called "stylish food neatly tweaked" by former Antoine's chef Tim Davies.

The Churchmans filed legal action against Ms Ord and Ms Sergeant.

Ms Ord denied that she had breached the restraint-of-trade clause, saying that The Musket Room was not similar to Verona.

"The two businesses are aimed at different clientele," said her lawyer, Greg Blanchard.

Before the court, the parties agreed that either Ms Ord would withdraw from any involvement in the restaurant - except as a silent shareholder - or The Musket Room would become a bar serving tapas.

Mr Blanchard said Ms Ord had opted for the second choice. "People can still eat there - it's just a different way of doing it," he said.

Ms Ord and Ms Anderson were pleased with the outcome, he said.

Mr Churchman said the restraint-of-trade clause had been an essential part of the deal to buy Verona.

He believed the court had reinforced the validity of the sale and purchase agreement, and that he and his wife had won the court battle.

The parties are expected to return to court later this year to argue over the Churchmans' claim for damages.