Gralka v. Isaacson

556 A.2d 888, 383 Pa. Super. 244, 1989 Pa. Super. LEXIS 832
CourtSupreme Court of Pennsylvania
DecidedMarch 31, 1989
Docket1621
StatusPublished
Cited by3 cases

This text of 556 A.2d 888 (Gralka v. Isaacson) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gralka v. Isaacson, 556 A.2d 888, 383 Pa. Super. 244, 1989 Pa. Super. LEXIS 832 (Pa. 1989).

Opinion

*246 DEL SOLE, Judge:

This is an appeal from a preliminary injunction which directed the HoneyBaked Ham Company to cease and desist from selling any food item from the premises it leased from Appellant, landlord. This injunction was based upon the court’s finding that HoneyBaked’s lease violated the terms of the landlord’s existing lease with Appellee. Because no reasonable grounds exist to support the court’s conclusion that a restrictive covenant was violated, we reverse the trial court’s order.

Where a preliminary injunction has been granted, our scope of review is limited to examining the record to determine whether there were any apparently reasonable grounds for the trial court’s action. City of Scranton v. Baiderman, 74 Pa.Commw. Ct. 367, 460 A.2d 1199 (1983). The court’s decision will be interfered with only where there are no grounds to support the decree or the rule of law relied upon was misapplied or palpably erroneous. Willman v. Children’s Hospital of Pittsburgh, 505 Pa. 263, 479 A.2d 452 (1984). A preliminary injunction is properly issued only where there is urgent necessity to avoid injury which cannot be compensated for by damages. Independent State Store Union v. Pennsylvania Liquor Control Bd., 495 Pa. 145, 432 A.2d 1375 (1981) It should never be awarded except where the plaintiff’s rights are clear and unless greater injury will be done by refusing it than by granting it. Id.

In this case the injunction was issued based upon the court's conclusion that a restrictive covenant in the Appellee’s lease was violated. Appellee had entered a lease with Appellant, landlord, to rent space in which to open a store, The Uncommon Market. Article IX of the lease provided a “Use Clause and Restrictions.” It permitted the leased premises to be used “for the sale of any and all customary merchandise sold in other Tenant-operated stores.” It also offered Appellee the following restriction as protection from competition:

Landlord will not lease or sell to, or otherwise permit the occupancy by, any one tenant (or its affiliates) of more *247 than Two hundred (200) square feet of floor area for the sale or display of International Foods, (emphasis added).

Other tenants enjoyed similar protections and a list of these tenants and their protected products was attached to the lease. A special agreement was made between Appellee and another Tenant, Pier I Imports, permitting the sale of certain items which would otherwise be violative of Appellee’s restrictive covenant. These items were described in the agreement attached to the lease as “tins of imported cookies, candies, and/or other food items.” (emphasis added).

The distinct nature of Appellee’s business is described in one remaining section of the lease agreement. Section 24 indicates that Appellee will be offering to the public written and photographic material not printed in the United States of America. Due to the potential that certain members of the public may find this material to be offensive, a provision for the removal of this material was made. Included in this provision is the following statement: “Both Landlord and Tenant agree that the primary purpose of this lease is for a retail store purveying foods from foreign lands.” (emphasis added).

Subsequent to the execution of this lease landlord entered another lease agreement with HoneyBaked Ham. Honey-Baked sought to occupy a storeroom for the sale of its specially prepared spiral sliced hams. Customarily 95% of the sales generated from a HoneyBaked Ham store are from these hams which are raised and prepared domestically. The hams are supplied, cooked and smoked by a supplier in South Dakota, and the store tops the ham with a glaze and slices it in a spiral fashion.

Appellee filed a complaint in equity seeking to have HoneyBaked cease and desist from continuing its planned commercial operations at the shopping center. This relief was sought based upon Appellee’s claim that by the terms of its lease it enjoyed an exclusive right to sell food products in the shopping center and that HoneyBaked would *248 violate the terms of this exclusivity provision if permitted to operate its store. In ruling on Appellee’s request the court focused on the terms “international foods” which appear in the exclusivity provision of Appellee’s lease. The court found that international foods are foods from any nation including the United States of America. Thus although the hams were supplied and produced domestically, the court found that they were an international food and the sale of such from the HoneyBaked store would violate the exclusive protection afforded Appellee in its lease.

Before we engage in a discussion of the interpretation of the term “international foods” which appear in the exclusivity clause, we first must address Appellee’s claims that this appeal cannot proceed because it is interlocutory and because the matter is moot. Appellee first contends that appellate review in this case should await entry of a permanent injunction and the entry of damages. We cannot agree with Appellee’s position when the Rules of Appellate Procedure specifically grant a party the right to take an interlocutory appeal from an order granting an injunction. See: Pa.R.A.P. 311(a)(4). And, despite the fact that HoneyBaked has decided not to pursue this matter on appeal, we do not find this appeal filed by the landlord to be moot. By the actions of the court granting an injunction the landlord has lost a tenant and the income it would generate, and may have suffered further damages. We cannot say HoneyBaked’s nonparticipation in this appeal has resulted in the absence of a case or controversy. Camiel v. Thornburgh, 507 Pa. 337, 489 A.2d 1360 (1985).

Turning now to the central issue in this case; the court’s interpretation of the term “international foods.” As noted the lease granted Appellee’s protection in the form of a restriction preventing the landlord from leasing premises in the shopping center to another business selling “international foods.” Although the hams in this case were produced in this country the court found that their sale would violate the terms of this restrictive covenant.

It has been held that nothing will be deemed a violation of a restrictive covenant that is not in plain disregard of its *249 express words. Berger v. Ackerman, 293 Pa.Super. 457, 439 A.2d 200, 203 (1981). “Moreover, this court cannot enlarge a restriction by implication for the restriction must be construed most strictly against the one asserting rights under it.” Id.

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Cite This Page — Counsel Stack

Bluebook (online)
556 A.2d 888, 383 Pa. Super. 244, 1989 Pa. Super. LEXIS 832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gralka-v-isaacson-pa-1989.