The controversy initially erupted publicly after Paris-based Leslie David Studio accused hospitality group SBE of failing to pay the remaining balance for the enormous artwork that now defines Katsuya Ko's Westfield UTC dining room. The studio launched a social media campaign titled "The Unpaid Project," alleging it was commissioned in 2024 to create the large-scale artwork specifically for Katsuya Ko. According to the studio, the project was approved and delivered, SBE signed an agreement and paid a deposit, but the remaining balance was never paid.
"The work was delivered. The work was installed. The client signed an agreement. The restaurant is still using it. The fee was never paid," the studio stated.
Leslie David Studio said it spent nearly two years attempting to resolve the matter privately through emails and follow-ups before paying for both a debt collection agency and legal counsel.
That dispute has since been resolved. After SanDiegoVille contacted both sides, Leslie David confirmed that the outstanding payment was received in full and said she considered the matter closed. SBE Senior Director of People & Culture JC Ayon-Torres subsequently told SanDiegoVille that current restaurant management was unaware that a $5,000 balance remained outstanding and said the people who originally entered into the agreement with Leslie David Studio were no longer with the company.
"The matter was immediately resolved with Leslie David studios as soon as it came to the attention of current restaurant management," Ayon-Torres wrote. "The individuals that entered the agreement with Ms. David's agency are no longer with the company, and current management was initially unaware a small balance of $5,000 remained outstanding."
Ayon-Torres characterized the issue as an "outdated oversight" now that the $5,000 has been paid and declined further comment.
"The matter was immediately resolved with Leslie David studios as soon as it came to the attention of current restaurant management," Ayon-Torres wrote. "The individuals that entered the agreement with Ms. David's agency are no longer with the company, and current management was initially unaware a small balance of $5,000 remained outstanding."
Ayon-Torres characterized the issue as an "outdated oversight" now that the $5,000 has been paid and declined further comment.
More importantly, the artist dispute is only one component of the story. SanDiegoVille's subsequent review of court records and additional documentation uncovered several separate and currently active disputes surrounding the months-old restaurant. Before its landlord filed the commercial eviction proceeding, Katsuya Ko received a Five-Day Notice to Pay or Quit demanding payment of what the landlord described as no less than $307,596.29.
The notice, a copy of which was obtained by SanDiegoVille, states that the amount allegedly due under the lease consisted of monthly minimum rent and additional rent, including charges for common-area maintenance, fire-detection systems, promotional expenses, property taxes and water, calculated over the preceding 12 months after crediting partial payments received.
The notice demanded that Katsuya Ko pay the entire $307,596.29 within five days or surrender possession of the Westfield UTC restaurant to landlord UTC Venture LLC. It further warned that failure to do so could result in legal proceedings seeking possession of the premises, damages for unlawful detention and other relief permitted under California law. Notably, the notice appears to have been directed not only to Katsuya Ko UTC LLC, but also to SBE Restaurant Group LLC and Sam Nazarian, among other listed recipients.
The notice represents the landlord's allegations and does not itself establish that the full amount was legally owed. But it provides considerably greater context for the commercial unlawful-detainer action that followed and shows that the landlord dispute concerned an alleged six-figure lease delinquency rather than merely an unspecified disagreement.
On June 23, UTC Venture LLC filed its verified commercial unlawful-detainer complaint against Katsuya Ko UTC LLC seeking possession of the restaurant premises. Court records identify UTC Venture as the property's owner and lessor and Katsuya Ko UTC LLC as its tenant. The case is UTC Venture LLC v. Katsuya Ko UTC LLC, Case No. 26UD034110C.
SanDiegoVille had the available docket reviewed by an attorney, who determined that Katsuya Ko failed to respond to the action, after which UTC Venture sought a judgment for possession. That request for judgment was subsequently rejected by the court as incomplete. Accordingly, there is presently no evidence that a judgment for possession has been entered or that Katsuya Ko has actually been evicted. The restaurant remains open.
SanDiegoVille specifically asked Ayon-Torres to address the eviction case, why Katsuya Ko UTC LLC apparently failed to respond, the amount alleged to be owed to the landlord and the separate contractor disputes. SBE declined to provide any further comment beyond its response concerning Leslie David Studio.
The landlord dispute is not the only litigation surrounding the restaurant. On August 18, San Diego-based contractor Premium West, Inc. filed a lawsuit in San Diego Superior Court naming Katsuya Ko UTC LLC, landlord UTC Venture LLC and Dorado Enterprises as defendants. The five-count complaint alleges breach of contract, violations of California's prompt-payment statutes, account stated, foreclosure of a mechanics' lien and quantum meruit and includes a demand for jury trial. Premium West identifies itself in the complaint as a licensed California contractor. The lawsuit is Case No. 26CU044101C.
Premium West's case isn't the first construction-payment lawsuit associated with Katsuya Ko. On May 5, Dorado Enterprises filed its own complaint seeking foreclosure of a mechanics' lien, naming Katsuya Ko UTC LLC as a defendant alongside SBE, SBE/Katsuya USA LLC, SBE Restaurant Group LLC, SBE Entertainment Group and UTC Venture LLC, among others. The case, Dorado Enterprises v. SBE et al., remains pending in San Diego Superior Court as Case No. 26CU024855C.
The existence of two separate mechanics' lien-related lawsuits became particularly notable when viewed alongside Leslie David Studio's allegation that it too completed work associated with the restaurant but spent nearly two years attempting to obtain its remaining payment. That artist dispute has now been resolved, however, and SanDiegoVille has found no evidence that it arose from the same contracts or is directly connected to either contractor lawsuit.
The timeline is nevertheless striking. After nearly two years of anticipation, construction delays and shifting opening dates, Katsuya Ko finally opened at Westfield UTC in February. By May, Dorado Enterprises had filed its mechanics' lien foreclosure lawsuit. According to the newly obtained notice, the landlord was also claiming hundreds of thousands of dollars in unpaid lease obligations. In June, UTC Venture filed the commercial unlawful-detainer action seeking possession. And in August, Premium West filed another lawsuit alleging unpaid contractual obligations and seeking foreclosure of another mechanics' lien.
Against that backdrop, SBE's characterization of the Leslie David matter as an outdated $5,000 oversight resolves the artist's individual claim but does not resolve the broader questions raised by the other disputes.
Behind the Katsuya brand is SBE, the hospitality company founded by high-profile entrepreneur Sam Nazarian, whose businesses have spent more than two decades developing restaurants, hotels and nightlife concepts. The upscale Katsuya concept grew from a collaboration involving SBE, renowned Japanese chef Katsuya Uechi and designer Philippe Starck, eventually expanding beyond Southern California.
Uechi, whose original Sushi Katsu-ya opened in Studio City in 1997 and who became widely credited with helping popularize spicy tuna crispy rice, died this past June at age 67. Katsuya Ko represents SBE's more casual evolution of the internationally recognized Katsuya brand and marked the name's return to San Diego after SBE previously operated Katsuya by Starck inside downtown's Andaz Hotel from 2012 until 2014.
Nazarian himself previously endured significant public scrutiny during his hospitality career. In 2014, shortly after the high-profile opening of SLS Las Vegas, he relinquished operational control of the resort amid a Nevada gaming-license investigation that publicly exposed details concerning his personal life and business dealings.
During proceedings before Nevada gaming regulators, Nazarian acknowledged recent cocaine use and testified about approximately $3 million in payments made over a period of years involving convicted felon Derrick Armstrong. Nazarian characterized those payments as resulting from extortion and threats to harm or embarrass him and interfere with major business transactions. He subsequently relinquished operational control of SLS Las Vegas and later told Nevada regulators he was taking time away from SBE.
Those events occurred more than a decade ago and are unrelated to the current disputes surrounding Katsuya Ko. SanDiegoVille has found no evidence connecting the Nevada controversy to the UTC litigation or establishing that Nazarian personally directed or was responsible for any of the alleged nonpayments now at issue.
What is notable today is the number of independent financial and contractual disputes that have converged around an SBE-affiliated restaurant within months of opening. The $5,000 Leslie David Studio balance has now been paid in full. But the landlord's separate notice alleged more than $307,000 in unpaid lease obligations, its commercial unlawful-detainer case remains a matter of court record, and two separate contractors have filed mechanics' lien-related lawsuits associated with the restaurant.
SanDiegoVille asked SBE directly for its position on the unlawful-detainer proceeding, the apparent failure of Katsuya Ko UTC LLC to respond, the allegations asserted by Dorado Enterprises and Premium West, whether the amounts claimed by either contractor remain outstanding and whether SBE is aware of any additional unpaid vendor or creditor claims involving the UTC restaurant. Ayon-Torres responded that SBE had "no further comments to add at this time."
SanDiegoVille has also contacted Katsuya Ko, Westfield UTC, UTC Venture LLC and parties involved in the contractor disputes seeking comment, clarification and supporting documentation.
SanDiegoVille is continuing to investigate Katsuya, SBE and affiliated companies. Anyone who has experienced payment issues, unpaid invoices, contractual disputes or other business-related problems involving Katsuya, SBE or affiliated entities is encouraged to contact SanDiegoVille confidentially at Info@SanDiegoVille.com. Former employees, contractors, vendors, artists and others with firsthand information or documentation are also encouraged to reach out.
This story will be updated with additional responses and court records as they become available.
Katsuya Ko is located at 4303 La Jolla Village Drive, Suite 2105, inside Westfield UTC in San Diego's University City neighborhood. For more information, visit katsuyako.sbe.com or sbe.com.
On June 23, UTC Venture LLC filed its verified commercial unlawful-detainer complaint against Katsuya Ko UTC LLC seeking possession of the restaurant premises. Court records identify UTC Venture as the property's owner and lessor and Katsuya Ko UTC LLC as its tenant. The case is UTC Venture LLC v. Katsuya Ko UTC LLC, Case No. 26UD034110C.
SanDiegoVille had the available docket reviewed by an attorney, who determined that Katsuya Ko failed to respond to the action, after which UTC Venture sought a judgment for possession. That request for judgment was subsequently rejected by the court as incomplete. Accordingly, there is presently no evidence that a judgment for possession has been entered or that Katsuya Ko has actually been evicted. The restaurant remains open.
SanDiegoVille specifically asked Ayon-Torres to address the eviction case, why Katsuya Ko UTC LLC apparently failed to respond, the amount alleged to be owed to the landlord and the separate contractor disputes. SBE declined to provide any further comment beyond its response concerning Leslie David Studio.
The landlord dispute is not the only litigation surrounding the restaurant. On August 18, San Diego-based contractor Premium West, Inc. filed a lawsuit in San Diego Superior Court naming Katsuya Ko UTC LLC, landlord UTC Venture LLC and Dorado Enterprises as defendants. The five-count complaint alleges breach of contract, violations of California's prompt-payment statutes, account stated, foreclosure of a mechanics' lien and quantum meruit and includes a demand for jury trial. Premium West identifies itself in the complaint as a licensed California contractor. The lawsuit is Case No. 26CU044101C.
Premium West's case isn't the first construction-payment lawsuit associated with Katsuya Ko. On May 5, Dorado Enterprises filed its own complaint seeking foreclosure of a mechanics' lien, naming Katsuya Ko UTC LLC as a defendant alongside SBE, SBE/Katsuya USA LLC, SBE Restaurant Group LLC, SBE Entertainment Group and UTC Venture LLC, among others. The case, Dorado Enterprises v. SBE et al., remains pending in San Diego Superior Court as Case No. 26CU024855C.
The existence of two separate mechanics' lien-related lawsuits became particularly notable when viewed alongside Leslie David Studio's allegation that it too completed work associated with the restaurant but spent nearly two years attempting to obtain its remaining payment. That artist dispute has now been resolved, however, and SanDiegoVille has found no evidence that it arose from the same contracts or is directly connected to either contractor lawsuit.
The timeline is nevertheless striking. After nearly two years of anticipation, construction delays and shifting opening dates, Katsuya Ko finally opened at Westfield UTC in February. By May, Dorado Enterprises had filed its mechanics' lien foreclosure lawsuit. According to the newly obtained notice, the landlord was also claiming hundreds of thousands of dollars in unpaid lease obligations. In June, UTC Venture filed the commercial unlawful-detainer action seeking possession. And in August, Premium West filed another lawsuit alleging unpaid contractual obligations and seeking foreclosure of another mechanics' lien.
Against that backdrop, SBE's characterization of the Leslie David matter as an outdated $5,000 oversight resolves the artist's individual claim but does not resolve the broader questions raised by the other disputes.
Behind the Katsuya brand is SBE, the hospitality company founded by high-profile entrepreneur Sam Nazarian, whose businesses have spent more than two decades developing restaurants, hotels and nightlife concepts. The upscale Katsuya concept grew from a collaboration involving SBE, renowned Japanese chef Katsuya Uechi and designer Philippe Starck, eventually expanding beyond Southern California.
Uechi, whose original Sushi Katsu-ya opened in Studio City in 1997 and who became widely credited with helping popularize spicy tuna crispy rice, died this past June at age 67. Katsuya Ko represents SBE's more casual evolution of the internationally recognized Katsuya brand and marked the name's return to San Diego after SBE previously operated Katsuya by Starck inside downtown's Andaz Hotel from 2012 until 2014.
Nazarian himself previously endured significant public scrutiny during his hospitality career. In 2014, shortly after the high-profile opening of SLS Las Vegas, he relinquished operational control of the resort amid a Nevada gaming-license investigation that publicly exposed details concerning his personal life and business dealings.
During proceedings before Nevada gaming regulators, Nazarian acknowledged recent cocaine use and testified about approximately $3 million in payments made over a period of years involving convicted felon Derrick Armstrong. Nazarian characterized those payments as resulting from extortion and threats to harm or embarrass him and interfere with major business transactions. He subsequently relinquished operational control of SLS Las Vegas and later told Nevada regulators he was taking time away from SBE.
Those events occurred more than a decade ago and are unrelated to the current disputes surrounding Katsuya Ko. SanDiegoVille has found no evidence connecting the Nevada controversy to the UTC litigation or establishing that Nazarian personally directed or was responsible for any of the alleged nonpayments now at issue.
What is notable today is the number of independent financial and contractual disputes that have converged around an SBE-affiliated restaurant within months of opening. The $5,000 Leslie David Studio balance has now been paid in full. But the landlord's separate notice alleged more than $307,000 in unpaid lease obligations, its commercial unlawful-detainer case remains a matter of court record, and two separate contractors have filed mechanics' lien-related lawsuits associated with the restaurant.
SanDiegoVille asked SBE directly for its position on the unlawful-detainer proceeding, the apparent failure of Katsuya Ko UTC LLC to respond, the allegations asserted by Dorado Enterprises and Premium West, whether the amounts claimed by either contractor remain outstanding and whether SBE is aware of any additional unpaid vendor or creditor claims involving the UTC restaurant. Ayon-Torres responded that SBE had "no further comments to add at this time."
SanDiegoVille has also contacted Katsuya Ko, Westfield UTC, UTC Venture LLC and parties involved in the contractor disputes seeking comment, clarification and supporting documentation.
SanDiegoVille is continuing to investigate Katsuya, SBE and affiliated companies. Anyone who has experienced payment issues, unpaid invoices, contractual disputes or other business-related problems involving Katsuya, SBE or affiliated entities is encouraged to contact SanDiegoVille confidentially at Info@SanDiegoVille.com. Former employees, contractors, vendors, artists and others with firsthand information or documentation are also encouraged to reach out.
This story will be updated with additional responses and court records as they become available.
Katsuya Ko is located at 4303 La Jolla Village Drive, Suite 2105, inside Westfield UTC in San Diego's University City neighborhood. For more information, visit katsuyako.sbe.com or sbe.com.
UPDATE: August 21, 2026: One day after SanDiegoVille published this article, Leslie David Studio publicly announced on their own Instagram that it had received the outstanding $5,000 payment from SBE and that the dispute was resolved.
“Well, we got paid,” the Paris-based studio wrote on Instagram. “After nearly two years of emails, follow-ups, a collection agency and legal counsel, it took one Instagram post to finally resolve the situation.”
The studio said the response to its original post was “far beyond anything we could have imagined” and thanked members of the independent creative community who shared the allegations and contacted the company. It also emphasized that Studio Murnane, which brought Leslie David Studio onto the project, was not responsible for the nonpayment.
Leslie David Studio additionally urged followers not to target employees of Katsuya KO, stating that restaurant staff “were not responsible either” and “had nothing to do with the situation.”
“The outstanding payment has now been received from SBE, the original post has been archived, and the matter is resolved,” the studio wrote. “I’m incredibly relieved and, to be honest, still a little baffled that it had to come to this just to get paid for work that was delivered almost two years ago.”
Following Leslie David Studio's announcement, SBE Senior Director of People & Culture JC Ayon-Torres contacted SanDiegoVille again and requested that the article be updated.
“As you have now likely seen, Ms. David has posted that the situation was resolved as we indicated to you,” Ayon-Torres wrote. “We would appreciate you updating your article to reflect this for completeness.”
Ayon-Torres also alleged that the original social-media post resulted in threats and harassment directed at Katsuya KO employees.
“The post caused several threats against employees of the restaurants,” Ayon-Torres wrote. “In addition to harassing phone calls and fake reservations, individuals physically appeared at the restaurant and verbally abused our employees.”
SanDiegoVille has not independently verified those allegations. Ayon-Torres emphasized that restaurant employees had no involvement in contracting for or paying for the restaurant's artwork and asked SanDiegoVille to encourage readers to respect their workplace in the interest of safety.
On that point, SBE and Leslie David Studio appear to be in complete agreement. Leslie David Studio itself expressly asked followers not to direct anger or negativity toward Katsuya KO employees, who had nothing to do with the payment dispute. SanDiegoVille likewise does not condone threats, harassment, fake reservations or abuse directed at restaurant workers over corporate business disputes.
The $5,000 Leslie David Studio dispute is therefore resolved. The considerably larger matters detailed in this article, however, remain separate questions.
In response to Ayon-Torres' request for a complete update, SanDiegoVille has again asked SBE whether the landlord's alleged $307,596.29 rent demand has been paid, settled or disputed; why Katsuya KO UTC LLC apparently failed to respond to the commercial unlawful-detainer proceeding; whether that eviction case has been resolved; and SBE's position regarding the separate mechanics' lien-related lawsuits filed by Dorado Enterprises and Premium West.
SanDiegoVille has also asked whether the amounts claimed by either contractor remain outstanding. This article will be updated if SBE provides additional information concerning those matters.
“Well, we got paid,” the Paris-based studio wrote on Instagram. “After nearly two years of emails, follow-ups, a collection agency and legal counsel, it took one Instagram post to finally resolve the situation.”
The studio said the response to its original post was “far beyond anything we could have imagined” and thanked members of the independent creative community who shared the allegations and contacted the company. It also emphasized that Studio Murnane, which brought Leslie David Studio onto the project, was not responsible for the nonpayment.
Leslie David Studio additionally urged followers not to target employees of Katsuya KO, stating that restaurant staff “were not responsible either” and “had nothing to do with the situation.”
“The outstanding payment has now been received from SBE, the original post has been archived, and the matter is resolved,” the studio wrote. “I’m incredibly relieved and, to be honest, still a little baffled that it had to come to this just to get paid for work that was delivered almost two years ago.”
Following Leslie David Studio's announcement, SBE Senior Director of People & Culture JC Ayon-Torres contacted SanDiegoVille again and requested that the article be updated.
“As you have now likely seen, Ms. David has posted that the situation was resolved as we indicated to you,” Ayon-Torres wrote. “We would appreciate you updating your article to reflect this for completeness.”
Ayon-Torres also alleged that the original social-media post resulted in threats and harassment directed at Katsuya KO employees.
“The post caused several threats against employees of the restaurants,” Ayon-Torres wrote. “In addition to harassing phone calls and fake reservations, individuals physically appeared at the restaurant and verbally abused our employees.”
SanDiegoVille has not independently verified those allegations. Ayon-Torres emphasized that restaurant employees had no involvement in contracting for or paying for the restaurant's artwork and asked SanDiegoVille to encourage readers to respect their workplace in the interest of safety.
On that point, SBE and Leslie David Studio appear to be in complete agreement. Leslie David Studio itself expressly asked followers not to direct anger or negativity toward Katsuya KO employees, who had nothing to do with the payment dispute. SanDiegoVille likewise does not condone threats, harassment, fake reservations or abuse directed at restaurant workers over corporate business disputes.
The $5,000 Leslie David Studio dispute is therefore resolved. The considerably larger matters detailed in this article, however, remain separate questions.
In response to Ayon-Torres' request for a complete update, SanDiegoVille has again asked SBE whether the landlord's alleged $307,596.29 rent demand has been paid, settled or disputed; why Katsuya KO UTC LLC apparently failed to respond to the commercial unlawful-detainer proceeding; whether that eviction case has been resolved; and SBE's position regarding the separate mechanics' lien-related lawsuits filed by Dorado Enterprises and Premium West.
SanDiegoVille has also asked whether the amounts claimed by either contractor remain outstanding. This article will be updated if SBE provides additional information concerning those matters.
Originally published August 19, 2026. Updated August 20, 2026, with SBE's response and additional documentation concerning the landlord's eviction proceeding. Updated on August 22, 2026 with information about Leslie David Studio's new Instagram Post and email from JC Ayon-Torres.
