Dave & Buster's, Inc. v. White Flint Mall, LLLP

616 F. App'x 552
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 11, 2015
Docket14-1794
StatusUnpublished
Cited by33 cases

This text of 616 F. App'x 552 (Dave & Buster's, Inc. v. White Flint Mall, LLLP) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dave & Buster's, Inc. v. White Flint Mall, LLLP, 616 F. App'x 552 (4th Cir. 2015).

Opinions

Affirmed by unpublished opinion. Judge WILKINSON wrote the majority opinion, in which Judge AGEE joined. Judge WYNN wrote a dissenting opinion.

Unpublished opinions are not binding precedent in this circuit.

WILKINSON, Circuit Judge:

This case arises from a Landlord-Tenant dispute at White Flint Mall in Montgomery County, Maryland. Landlord White Flint Mall sought to terminate its lease agreement with Tenant Dave & Buster’s in 2012 in light of a prior and ongoing violation of the radius restriction clause, which prohibited Dave & Buster’s from operating a competing facility within the nearby geographic area. Dave & Buster’s sought a declaratory judgment that the termination was time-barred by the statute of limitations and equitable relief in the form of specific performance of the agreement between the parties. The district court granted summary judgment for White Flint, finding that Dave & Buster’s had violated the radius restriction clause and that White Flint’s termination was therefore lawful, and not time-barred or waived. Dave & Buster’s now appeals raising numerous arguments. Because those arguments all seek to overlook the agreement between the parties, we now affirm.

I.

In 1995, Dave & Buster’s entered into a lease agreement with White Flint to open an entertainment-recreation-amusement complex in the White Flint Mall in Montgomery County, Maryland. The Lease was to last for a term of twenty years, with a right to extend for three successive periods of five years. Included in the provisions of the agreement was a radius restriction clause, in which Dave & Buster’s agreed to refrain from operating a competing facility under the Dave & Buster’s Trade Name within a given radius area. See J.A. 52 (Section 11.3).

At some point prior to April 2006, however, Dave & Buster’s acquired a former Jillian’s location, which it rebranded and began operating as Dave & Buster’s Grand Sports Café in the Arundel Mills Mall in Anne Arundel County, Maryland. On April 13, 2006, White Flint Mall notified Dave & Buster’s that its operation of the Arundel Mills Mall location rendered it in violation of the radius restriction clause in the 1995 Lease. Although the map of the geographic area covered by the radius restriction clause is not included in the record before this court, neither party contests that the Arundel Mills Mall location is within the covered area.

White Flint noted that out of “deference to the longstanding, mutually beneficial relationship between the parties,” the com[555]*555pany had “elected not to formally place Dave & Buster’s in default under the Lease” even though “the Arundel Mills situation constituted a significant violation of the Lease.” J.A. 130. The company did, however, include in the letter that “the Landlord reserves all of its rights under the Lease and at law to enforce the terms of the Lease.” Id. Following this letter, both parties continued to engage in the usual course of business under the Lease.

On September 5, 2012, however, in connection with redevelopment efforts at White Flint Mall, White Flint provided Dave & Buster’s with formal notice demanding the company cure the violation of the radius restriction clause within 30 days or the landlord would proceed to exercise its rights under the contract. After the 30 day period had passed, on October 9, 2012 White Flint notified Dave & Buster’s that it had elected to exercise its right to terminate the Lease under Section 18.1(c) effective as of December 31, 2012. Id. at 134. Section 18.1(c) allows the Landlord to terminate the Lease with 10 days’ notice in the event that the Tenant was in default in the performance of any of its covenants or agreements (other than payment of rent) for a period of 30 days. Id. at 61.

Dave & Buster’s continued to operate and pay rent while the parties attempted to negotiate a resolution to the dispute. The discussions did not result in a satisfactory outcome and on October 17, 2013, White Flint sent a letter to Dave & Buster’s stating that it was “no longer willing to refrain from enforcing its right to possession of the Premises” and requesting Dave & Buster’s vacate the property by the end of November. Id. at 139.

On November 14, 2013, Dave & Buster’s initiated this lawsuit in the district of Maryland seeking declaratory and injunctive relief. The Complaint pled three counts. It sought a declaratory judgment on whether White Flint’s claim of breach of contract was time-barred by the statute of limitations, requested specific performance of the Lease and a preliminary injunction to that effect, and asserted breach of the implied covenant of good faith and fair dealing. White Flint in response moved to dismiss, or in the alternative for summary judgment. Dave & Buster’s crossed moved for summary judgment only on the issue of the statute of limitations.

The district court, after a hearing, granted partial summary judgment to White Flint on March 24, 2014 with regard to Count One, finding the company’s breach of contract claim was not precluded by the statute of limitations or any theory of waiver and that the radius restriction clause was enforceable and breached by Dave & Buster’s. It further dismissed Dave & Buster’s request for a preliminary injunction that would enable it to continue operation at White Flint Mall notwithstanding the radius restriction clause. Further, the court rejected any claim that White Flint had breached an implied covenant of good faith and fair dealing. On July 22, 2014, the court dismissed the outstanding claims, finding the Lease properly terminated, and ruled on a counterclaim for possession of the property filed by White Flint in answer to the initial Complaint, awarding possession of the premises to White Flint.

On July 29, 2014, Dave & Buster’s filed a Motion to Alter or Amend a Judgment arguing that the district court erroneously stated that it had “abandoned any claim for damages arising out of any violation of the express terms of the Lease between the parties.” Id. at 418. The district court denied the motion on August 8, 2014. Dave & Buster’s now appeals.

[556]*556II.

A.

Dave & Buster’s primary contention is that the statute of limitations has run on White Flint’s claim for breach of contract. The company argues that the district court erred when it refused a declaratory judgment on the question and granted summary judgment for White Flint. We disagree. Because Dave & Buster’s actively continued to breach a contract that was still valid and in effect, White Flint’s action did not run afoul of the statute of limitations.

Under Maryland law, which governs the statute of limitations question, a civil action “shall be filed within three years from the date it accrues unless another provision of the Code provides a different period of time within which an action shall be commenced.” Md.Code Ann., Cts. & Jim Proo. § 5-101. Maryland courts construe the statute of limitations strictly. See Murphy v. Merzbacher, 346 Md. 525, 697 A.2d 861, 865 (1997).

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Bluebook (online)
616 F. App'x 552, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dave-busters-inc-v-white-flint-mall-lllp-ca4-2015.