Folsom restaurant owner hasn’t paid rent in three months. She says she has a legal right to stay

Inside Q’bole Cocina & Cantina, a Mexican restaurant on Folsom’s Sutter Street, owner Diana Calderon serves traditional dishes from Mazatlan, Mexico. Outside the building, a white “For Lease” sign hangs.

Calderon hasn’t paid rent since May, when she received notice her lease would not be renewed. She says she has the right to stay, citing allegations of retaliation.

The building’s owner, Moe Hirani, maintains Calderon should have left when the restaurant’s lease ended on July 31. Hirani said he recently filed an unlawful detainer, a lawsuit to evict a tenant from a rental property.

“Most people, when the lease expires, they pack up and leave,” said Hirani, who denied Calderon’s allegations.

Calderon is likely to eventually get evicted. Landlords tend to prevail in eviction cases with commercial tenants, said Rich Watts, a lawyer with the Peterson Watts Law Group, a law firm in Roseville.

“For the most part, the landlords are going to win those cases when a tenant stays over,” Watts said.

Still the legal process may take months. Until then, Calderon says she’ll stay put.

“We’re waiting it out to see when we have our day in court,” Calderon said.

‘We had a really good relationship’

Q’bole has operated in Folsom for more than 20 years. Previously located on Gold Lake Drive, Calderon moved the restaurant to its now prime location in February 2014.

The space features an outdoor deck with seating overlooking the three-block strip of stores, restaurants and bars in Historic Folsom.

“We wanted to be where the middle of the action was,” Calderon said.

Her original five-year lease included the possibility to renew for three more five-year extensions, totaling 20 years. Calderon, expecting to spend the next two decades in the space, invested roughly $70,000 to renovate the space and put in a bar.

That lease agreement and the renovations that followed, however, were made under a different property owner.

Hirani took over ownership of the entire 718 Sutter St. building in late 2014. The building houses six business including a cocktail bar and kitchen, toy store and nail salon.

Their early interactions were pleasant, Calderon said. Hirani came to the restaurant to introduce himself and the pair exchanged pleasantries whenever their paths crossed on Sutter Street. In 2019, they even agreed to renew the lease for another five years.

“We had a really good relationship,” Calderon said.

Tension between the pair centered mainly over repairs, according to a review of emails provided by Calderon. The email exchanges were between Calderon and either Hirani or his property management company — Folsom Preserve Property Management.

Over the last few years, Calderon detailed her frustration with what she felt were not timely repairs to the restaurant. In most cases, Calderon alleged Hirani did not respond to her emails, and she was directed to talk with the property manager.

Her frustration continued into January 2023, when she said a storm caused $7,000 in window damage to the restaurant. Calderon paid for the repairs out of pocket. A letter from Calderon’s insurance indicates the landlord should responsible for the repair costs, but she said he has not paid her back.

Despite this tension, Calderon said she was in discussions with Hirani about signing another five-year lease renewal.

In January, Calderon recalled informing Hirani of more renovations. She planned to remove a wall and install new flooring for about $15,000. Calderon claims Hirani came to visit the restaurant that month, solely asking her to notify her neighbors of the upcoming construction.

“Shouldn’t he have told me that (he wasn’t going to extend the lease) in January before spending all this money remodeling,” Calderon said.

Email exchanges in March 2024 between Hirani and Calderon show the the pair discussing more renovations. Calderon asked for cost estimates and brought up the potential addition of a restroom in the restaurant.

“Please throw some figures,” Calderon wrote at end of one email. “I can make the right decision.”

“Diana, these are great suggestions, I’ve been considering the bathroom separation option for some time now,” Hirani responded back. “I’ll set up a meeting and we can take this further.”

Calderon alleges talks for a lease renewal broke down after one of her employees filed a workplace injury lawsuit in Sacramento County Superior Court in May against Hirani’s business — Visione Enterprises, LLC. The lawsuit centers around the building’s elevator not working properly and resulting in an injury.

Three days after the lawsuit was filed, Calderon received a notice saying an extension of her lease would not be granted. In the letter, she is asked to restore a window “changed without authorization” back to its original condition.

“I feel like we have been retaliated (against),” Calderon said.

Hirani denied Calderon’s allegations, saying “his record” as a property owner speaks for itself. He also expressed his surprise at Calderon’s claims, noting he has always had “good dialogue” with her until recently.

Above all, Hirani said, her lease has ended and she remains unlawfully in the space. He argues Calderon had an option to renew, but never moved forward with it. In the 2014 lease, it stated the tenant must given written notice of a renewal to the landlord at least three months before the lease expired.

“Her lease has expired,” Hirani said. “We all know how this ends.”

Communication between Hirani and Calderon has ceased. Calderon said she blocked his phone number and no longer wants to communicate, instead she hopes the court resolves their issues.

“I’d hate to file a default claim against you and the Q’bole company, as I know you want to continue doing business in the area,” Hirani wrote in a text to Calderon. “This will only harm your reputation. If you want to discuss call me. If not, just know legal actions are being made.”

‘It can take six months’

The legal system will likely rule in Hirani’s favor, according to multiple Sacramento lawyers. But it could take up to half a year before Calderon is required to vacate.

The typical process for an unlawful detainer, known as an eviction notice, takes roughly one month, said Watts. That varies widely depending on the court’s availability to take on the case.

Watts said Sacramento County’s courts are backed up with litigation, which leads to these timelines stretching out.

“It can take six months to get someone out of there in some circumstances,” Watts said.

When the court does take up the case, Calderon will likely be mandated to leave.

In commercial unlawful detainer cases, Watts said, the tenant defenses are often fact specific and limited. This is particularly true when tenants stay beyond their lease. The cases usually come down to if the tenant paid their rent, if they left on time and if the landlord provided proper notice.

When informed of her legal odds, Calderon replied that she had faith in the justice system and wanted a judge to decide her situation. If the ruling does not go her way, she will exit the space immediately.

“We would obviously find another space,” Calderon said.