Appeal of SK restaurant’s COVID fines likely to be dismissed

The former owner of That One Place restaurant has taken no action in over a year to advance his appeal of $132,000 in COVID-related fines, so the case now faces dismissal.

The fines were imposed for staff of then-owner Craig Kenady unlawfully serving patrons indoors at a time the practice was barred by mandate of Gov. Jay Inslee. The popular Port Orchard eatery on 11 occasions improperly conducted dine-in service between Jan. 6-18, 2021, court records say. Each violation was deemed “willful” and carried a $12,000 fine.

The Kitsap Daily News reached out to Kenady for comment at his last known email address but received no response.

The case centered on whether the restaurant’s indoor area where customers were served was the equivalent of outside dining. Outdoor service had been authorized by the state under certain circumstances.

The state Department of Labor and Industries brought the case after citing the establishment.

On Oct. 12, 2022, Kenady, appealed the fines in Kitsap County Superior Court. Kenady has taken no action in the past 15 months for the appeal to proceed, a review of the court file says.

The financial penalties were imposed following a hearing before an administrative judge and later affirmed by the Board of Industrial Insurance Appeals.

Following a year of inaction, the appeal can be dismissed by the court, superior court records unit lead Tamra Cook said. L&I can also move to dismiss the case.

L&I expects the court to dismiss the case at any time, L&I public affairs manager Matt Ross said. “We typically wait for (the court) to take that step, but we would move to dismiss on our own if we don’t see that soon,” Ross added.

The state is not expected to move to collect the financial penalties until the appeal process wraps up.

Staffing issues have prevented the court from dealing with the idle appeal, Cook said. Prior to the court taking action it will reach out to Kenady.

“Sometimes in 2024, a notice will be sent out saying you have 30 days to file anything in the case or the court will dismiss your case,” Cook said. If there is no response, the clerk’s office will provide an order of dismissal to a judge who will sign the document, she noted.

After a judge upheld the COVID fines in mid-2022, Kenady announced on the restaurant’s Facebook page that he was going to sell the business. He did so in October of 2022.