Churchill's Restaurant, Inc. v. Timeless Towns of Americas, Inc.

7 Pa. D. & C.3d 16, 1978 Pa. Dist. & Cnty. Dec. LEXIS 223
CourtPennsylvania Court of Common Pleas, Adams County
DecidedJuly 18, 1978
Docketno. 78-S-158
StatusPublished

This text of 7 Pa. D. & C.3d 16 (Churchill's Restaurant, Inc. v. Timeless Towns of Americas, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Adams County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Churchill's Restaurant, Inc. v. Timeless Towns of Americas, Inc., 7 Pa. D. & C.3d 16, 1978 Pa. Dist. & Cnty. Dec. LEXIS 223 (Pa. Super. Ct. 1978).

Opinion

SPICER, P.J.,

Plaintiff conducts a restaurant operation or business in space leased from defendant in a commercial center known as International Village. The leasing arrangements began February, 1973. In April, 1978, defendant landlord obtained a judgment of possession from a magistrate and plaintiff tenant has appealed that case and instituted this action.

[17]*17Tenant has asked for preliminary injunctions restraining landlord from pursuing means of obtaining possession other than in the case presently on appeal and also restraining landlord from changing the character of the commercial develpment until after a trial can be held and a final determination made. We granted an injunction prohibiting multiple actions for possession after tenant filed waivers of objections to form, content and service of notice to quit, and now consider the request for an injunction prohibiting landlord from changing the character of the development pending final determinations.

At the hearing in this case, George Shamounki, president of corporate tenant, testified that he had invested $185,000 in the leased premises. According to his testimony and the testimony of his witnesses, the commercial development began with a design and/or concept of historical decor. The center envisioned 66 shops, each specializing in something. Many of these shops never opened, but of the 55 opened and operating in 1974, there are 13 now under lease and operating. Of these 13, six expire in July, 1978, and there are no plans for renewal.

R. L. Michaels, Limited has taken over 11 shops and is operating them. To some extent, this corporate entity has interlocking officers with defendant.

All witnesses testified that hope and expectations had not been fulfilled. One of tenant’s witnesses said that at times it was “downright humiliating” for her to keep her shop open because of the total lack of business. However, according to the lease agreements, tenants were [18]*18required to maintain regular hours and landlord has kept records of when shops failed to conform to schedule.

Tenant and his witnesses maintained that the lack of business was due to landlord’s failure to vigorously promote the project. Landlord attributed the decline to problems linked with national economic factors, competing institutions, and the need for something to stimulate public interest.

The “something” the landlord has seized upon is to transform the area into a “peddlers’ village.” Tenant protests that crowds who come to buy 25 cent items do not eat in haute cuisine. Tenant states that the “peddlers” of the “peddlers’ village” are in fact unfair competition who pay no fixed rental, attract crowds with small spending habits, and actually compete with some of the shops in the center.

It is obvious after considering testimony that the economic situation in the development is unfavorable. It is further obvious that landlord has already embarked upon a campaign to change the concept of the development. Most of the exhibits relating to advertisements stressed, in one way or the other, concepts of a “flea market” or a “peddlers’ village.”

Following the hearing, the case was scheduled for argument. After the hearing, but before the argument, landlord added as a ground for its request for dismissal of tenant’s petition lack of jurisdiction of the court because of failure by tenant to join all indispensable parties.

The landlord was somewhat vague at the argument as to what it considered to be an indispensable party. However, it urged that at least [19]*19all the other shopowners and all the persons whom landlord had licensed to peddle should be joined in this litigation.

The notes of testimony of the hearing were not transcribed and the court is relying on memory and its trial notes. The court can find no testimony directly bearing on this point. The landlord’s witnesses had testified that some arrangements had been made with unspecified numbers of people to use the village and considerable money had been expended to promote the “flea market” or “peddlers’ village” concept. The landlord had not filed preliminary objections under Pa.R.C.P. 1028(c) on this issue.

It is not clearly apparent at this stage that the landlord’s position is -well-founded. Perhaps if the issue had been timely raised, evidence could have been introduced pertaining to it. Awaiting as it did, the conclusion of the hearing to raise the issue, the landlord is bound to the record as it exists. It is the landlord’s burden to show there are indispensable parties not joined: Alumbaugh v. Wallace Business Forms, Inc., 226 Pa. Superior Ct. 511, 313 A. 2d 281 (1973). The court cannot, at this stage, find that other parties have such an interest in this litigation as to make them indispensable to this litigation. Therefore, the objection to jurisdiction based upon failure to join indispensable parties is overruled.

Although appellate cases dealing with the right of parties to preliminary injunctions sometimes speak of a prima facie showing of a right to a final injunction: Blenko v. Schmeltz, 362 Pa. 365, 67 A. 2d 99 (1949); the overwhelming majority of cases require that “in order to sustain apreliminary [20]*20injunction the plaintiffs right to relief must be clear, the need for relief must be immediate, and the injury must be irreparable if the injunction is not granted.” Township of South Fayette v. Com., 477 Pa. 574, 385 A. 2d 344 (1978).

In considering whether plaintiffs right to relief is clear, the court must consider the testimony and the documents involved. A review of the lease documents dated February 17, 1973, show the following:

1. In the recital, it is stated that landlord is constructing “an historical and commercial development.”

2. In Section 2, landlord agreed to complete the exterior and interior of the premises “compatibly with Timeless’ requirements of historical accuracy and uniformity of decor.”

3. The word “bazaar” is used in the lease several times. For example, the development is referred to as “International Village Bazaar” in the recital and as the “Bazaar” in paragraph 3.

4. In exhibit C, “Description of Landlord’s and Tenant’s Work,” under 1, Landlord’s Work, it was provided in section B that landlord would provide and construct a store front. The following sentence followed the requirement that tenant select a design prepared by landlord’s engineering department: “The authenticity of store fronts is of extreme importance to landlord, and no deviation from landlord’s designs will be permitted without expressed permission of landlord.”

5. In section C of the same exhibit C, it was provided that: “Because of Landlord’s concern with historical authenticity and compatibility of decor in the development, Landlord will provide interior finish, prpviding a suitable surface and appropriate [21]*21colors. Tenant’s desires with respect to colors of interiors will be consulted, but Landlord’s decision will be final.”

6. Finally, under 2, Tenant’s Work, General Statement, it was provided that “It is the intention of the Landlord to finish the interior of all premises to a much greater degree than in normal shopping center contracts.”

7. In all the statements above, the landlord’s position was recited as being a matter of intent or interest, but it was the tenant who undertook some obligations as a result of this.

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Related

Township of South Fayette v. Commonwealth
385 A.2d 344 (Supreme Court of Pennsylvania, 1978)
Kohn v. Kohn
364 A.2d 350 (Superior Court of Pennsylvania, 1976)
Blenko v. Schmeltz
67 A.2d 99 (Supreme Court of Pennsylvania, 1949)
Alumbaugh v. Wallace Business Forms, Inc.
313 A.2d 281 (Superior Court of Pennsylvania, 1973)
In re Spectrum Arena, Inc.
340 F. Supp. 784 (E.D. Pennsylvania, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
7 Pa. D. & C.3d 16, 1978 Pa. Dist. & Cnty. Dec. LEXIS 223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/churchills-restaurant-inc-v-timeless-towns-of-americas-inc-pactcompladams-1978.