In the latest round, the city of Cupertino has filed suit against the Blue Pheasant for violating its lease. In the meantime, the city—which owns the property—has closed the building until early October for renovations.

"It's a simple lawsuit," said Cupertino's city attorney, Chuck Killian. "One of the provisions of [Blue Pheasant's] lease is they close at 11 p.m." The Blue Pheasant had been operating for 30 years from 11 a.m to 2 a.m. Last March the city renewed the restaurant's lease with the provision that it close at 11. However, "some days they do so, some days they don't," said city council member Dolly Sandoval.

"It needs to close at 11 because it's part of park property and zoned that way," said Killian. "Restaurants are allowed, but not nightclubs that stay open until 2 a.m."

Neighbors of the Blue Pheasant have also been complaining about noise, traffic and people problems. Residents have also complained of a changing clientele at the restaurant, one involved in fights and prostitution

Lona Means, the restaurant's manager and daughter of its longtime owner, Ole Peter Rasmussen, said this is not true. "That's absolutely outrageous," she said. "It is 100 percent not true and has never happened."

Killian agreed. "I have never heard anything like that," he said of the prostitution.

As for the contested lease, Means said, "For 30 years we were fine under the old zoning regulations and my lawyers tell me we are fine now. Some of the neighbors complaints are motivated by [concern over] property values."

Sandoval said Rasmussen should have asked the city council for an amendment to the General Plan when the lease was renewed in March. "As far as I'm concerned, they still have that opportunity and I hope they do so," she said. "The Blue Pheasant is a great place to hang out and it's popular."

Whether that continues to be the case remains to be seen. Means hopes the city will simply let her family sell the business so it can continue its long tradition of being a popular community gathering spot. In June, the city council rejected a potential buyer in a 4-1 vote, citing the applicants' lack of restaurant experience.

Council member Richard Lowenthal, who voted for the buyers, said he didn't think the council was in a position to judge their business experience. Plus, he said, "their rent was guaranteed by the Rasmussens. I didn't see the ground on which we stood, but I support the council's decision."

Means remains optimistic about finding a new buyer soon.

"We're hoping that will happen," she said, "and we can all move our separate ways."