Morning Dew Libations Co. owner Michelle recently published a lengthy series of Instagram slides accusing Jaguar Paw bar and restaurant of repeatedly changing the terms of their business arrangement, forcing her coffee concept out of the shared Logan Avenue space and refusing to return money she says represents a security deposit and prepaid rent. Jaguar Paw, however, disputes many of those allegations, contending Morning Dew breached a written agreement by leaving more than a month before its lease expired and that the matter is now headed to small claims mediation.
Morning Dew previously operated as a daytime coffee and matcha concept inside Jaguar Paw at 2185½ Logan Avenue, using the restaurant during hours when the evening-focused bar and seafood restaurant was otherwise closed.
Jaguar Paw was announced in 2023 as a listening bar and seafood-focused restaurant from Zack Meyer and Alejandro Aguayo, featuring cocktails, natural wines, craft beer and a menu centered on oysters, ceviche, crudos and other seafood dishes. Morning Dew later developed a loyal following inside the space with specialty coffee drinks and colorful matcha creations, including its viral "Ordinary Pleasure."
According to Michelle, the arrangement evolved from an earlier business called Despertar Coffee, which she originally operated with her brother before continuing independently under the Morning Dew name. She says she paid a security deposit, first month's rent and final month's rent when entering the original sublease arrangement.
Michelle alleges the relationship became increasingly difficult as Morning Dew's popularity grew. She claims Jaguar Paw, which she says was struggling financially, proposed absorbing Morning Dew into its own operation by hiring her to run both businesses while taking ownership of the concept she had built. Michelle says she declined because she wanted to retain ownership of her business, recipes and brand.
She further alleges Jaguar Paw later increased her monthly rent and repeatedly modified the operating arrangement, including proposing weekend brunch service during Morning Dew's business hours and later imposing a $175 fee for each outside vendor participating in Morning Dew pop-up events. Jaguar Paw disputes that characterization.
In a written response to SanDiegoVille, Jaguar Paw co-owner Ryan Raymundo said the parties operated under a written agreement and that Morning Dew was treated fairly throughout the relationship. He said screenshots and messages published online were selectively presented and taken out of context.
"We always felt we treated her fairly," Raymundo wrote. "We feel hurt and believe words and messages were manipulated and taken out of context to hurt us."
Raymundo also disputes Morning Dew's claim that Jaguar Paw repeatedly changed the agreement. Regarding the vendor fee, he said the original arrangement required Morning Dew to discuss pop-up events with Jaguar Paw beforehand, but vendors were frequently using the restaurant's utilities, ice machine, water, dishes, glassware and restroom facilities without prior approval. According to Raymundo, the proposed fee was intended to offset those additional operating costs rather than fundamentally change the agreement.
The timing of Morning Dew's departure appears to be the central disagreement between the parties. Michelle says Jaguar Paw informed her it would need the daytime space back and that she ultimately left because the conditions under which she had prepaid to operate during May were no longer available. She says she ceased operating there in late April and is owed $2,200 representing her security deposit and prepaid final month's rent.
Jaguar Paw tells a different story. According to Raymundo, Morning Dew's written agreement extended through June 30, 2026, and ownership informed Michelle in March only that the arrangement would not be renewed after the lease expired because Jaguar Paw needed to expand its own operations. He said Morning Dew was never asked to vacate early and that any discussion about weekend mornings referred only to Jaguar Paw's plans after June 30.
Instead, Raymundo says Morning Dew unexpectedly notified Jaguar Paw on April 24 that it would leave with only five days' notice, more than a month before the agreement expired. He also notes that Morning Dew publicly announced a lease at another location around the same time, leading Jaguar Paw to believe Michelle had secured another space before terminating the existing agreement.
The parties likewise sharply disagree over the disputed $2,200. Michelle maintains the money consists of a refundable $1,100 security deposit and $1,100 in prepaid final month's rent.
Jaguar Paw contends Morning Dew defaulted on the written agreement by leaving early, causing both the prepaid rent and security deposit to be forfeited. Raymundo further alleges Morning Dew never returned its keys, never completed a walkthrough of the premises and did not request the return of any deposit until approximately two months after leaving. That request, Raymundo says, arose only after Jaguar Paw contacted Michelle to discuss a negative social media post she had made about the business.
Michelle's Instagram posts include screenshots appearing to show a Jaguar Paw representative proposing repayment in two $1,100 installments. Raymundo acknowledged those discussions but said they occurred during informal settlement negotiations before Jaguar Paw consulted legal counsel. After speaking with an attorney, Raymundo said Jaguar Paw decided the dispute should instead proceed through the small claims process.
"This is a complex situation," Raymundo wrote. "The Jaguar Paw team feels we did everything with good intentions and fairness. We obviously have different perspectives on the situation."
Raymundo said Jaguar Paw has already initiated small claims mediation and notified Morning Dew earlier this week. He said Jaguar Paw is not seeking monetary damages but instead hopes to resolve the competing claims through the legal process rather than social media.
"We've chosen to stay out of social media because we'd rather handle it in small claims court where issues like this are meant to be dealt with," he wrote.
Michelle has characterized her public posts as a warning to other small business owners about relying on informal or evolving shared-space arrangements. She says she attempted to resolve the matter privately before deciding to publish documentation she believes supports her claims.
The documents and screenshots published by Morning Dew appear to support the existence of a shared-space agreement, discussions regarding rent, vendor fees and repayment, as well as negotiations over the disputed funds. Jaguar Paw, however, disputes Michelle's interpretation of those communications and maintains additional documents, the written agreement and the surrounding circumstances tell a different story.
Many factual and legal questions remain unresolved, including whether Morning Dew's departure constituted a contractual default, whether Jaguar Paw effectively forced the business to leave before the agreement expired, whether the security deposit and prepaid rent were properly forfeited, and whether any later repayment discussions created an enforceable settlement.
Those issues may ultimately be decided through the mediation process now underway.
"We always felt we treated her fairly," Raymundo wrote. "We feel hurt and believe words and messages were manipulated and taken out of context to hurt us."
Raymundo also disputes Morning Dew's claim that Jaguar Paw repeatedly changed the agreement. Regarding the vendor fee, he said the original arrangement required Morning Dew to discuss pop-up events with Jaguar Paw beforehand, but vendors were frequently using the restaurant's utilities, ice machine, water, dishes, glassware and restroom facilities without prior approval. According to Raymundo, the proposed fee was intended to offset those additional operating costs rather than fundamentally change the agreement.
The timing of Morning Dew's departure appears to be the central disagreement between the parties. Michelle says Jaguar Paw informed her it would need the daytime space back and that she ultimately left because the conditions under which she had prepaid to operate during May were no longer available. She says she ceased operating there in late April and is owed $2,200 representing her security deposit and prepaid final month's rent.
Jaguar Paw tells a different story. According to Raymundo, Morning Dew's written agreement extended through June 30, 2026, and ownership informed Michelle in March only that the arrangement would not be renewed after the lease expired because Jaguar Paw needed to expand its own operations. He said Morning Dew was never asked to vacate early and that any discussion about weekend mornings referred only to Jaguar Paw's plans after June 30.
Instead, Raymundo says Morning Dew unexpectedly notified Jaguar Paw on April 24 that it would leave with only five days' notice, more than a month before the agreement expired. He also notes that Morning Dew publicly announced a lease at another location around the same time, leading Jaguar Paw to believe Michelle had secured another space before terminating the existing agreement.
The parties likewise sharply disagree over the disputed $2,200. Michelle maintains the money consists of a refundable $1,100 security deposit and $1,100 in prepaid final month's rent.
Jaguar Paw contends Morning Dew defaulted on the written agreement by leaving early, causing both the prepaid rent and security deposit to be forfeited. Raymundo further alleges Morning Dew never returned its keys, never completed a walkthrough of the premises and did not request the return of any deposit until approximately two months after leaving. That request, Raymundo says, arose only after Jaguar Paw contacted Michelle to discuss a negative social media post she had made about the business.
Michelle's Instagram posts include screenshots appearing to show a Jaguar Paw representative proposing repayment in two $1,100 installments. Raymundo acknowledged those discussions but said they occurred during informal settlement negotiations before Jaguar Paw consulted legal counsel. After speaking with an attorney, Raymundo said Jaguar Paw decided the dispute should instead proceed through the small claims process.
"This is a complex situation," Raymundo wrote. "The Jaguar Paw team feels we did everything with good intentions and fairness. We obviously have different perspectives on the situation."
Raymundo said Jaguar Paw has already initiated small claims mediation and notified Morning Dew earlier this week. He said Jaguar Paw is not seeking monetary damages but instead hopes to resolve the competing claims through the legal process rather than social media.
"We've chosen to stay out of social media because we'd rather handle it in small claims court where issues like this are meant to be dealt with," he wrote.
Michelle has characterized her public posts as a warning to other small business owners about relying on informal or evolving shared-space arrangements. She says she attempted to resolve the matter privately before deciding to publish documentation she believes supports her claims.
The documents and screenshots published by Morning Dew appear to support the existence of a shared-space agreement, discussions regarding rent, vendor fees and repayment, as well as negotiations over the disputed funds. Jaguar Paw, however, disputes Michelle's interpretation of those communications and maintains additional documents, the written agreement and the surrounding circumstances tell a different story.
Many factual and legal questions remain unresolved, including whether Morning Dew's departure constituted a contractual default, whether Jaguar Paw effectively forced the business to leave before the agreement expired, whether the security deposit and prepaid rent were properly forfeited, and whether any later repayment discussions created an enforceable settlement.
Those issues may ultimately be decided through the mediation process now underway.
Originally published on August 5, 2026.