Roddy Realty, Inc. v. Cadillac Real Estate Co.

41 Pa. D. & C.2d 622, 1966 Pa. Dist. & Cnty. Dec. LEXIS 234
CourtPennsylvania Court of Common Pleas, Luzerne County
DecidedDecember 21, 1966
Docketno. 17
StatusPublished

This text of 41 Pa. D. & C.2d 622 (Roddy Realty, Inc. v. Cadillac Real Estate Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Luzerne County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roddy Realty, Inc. v. Cadillac Real Estate Co., 41 Pa. D. & C.2d 622, 1966 Pa. Dist. & Cnty. Dec. LEXIS 234 (Pa. Super. Ct. 1966).

Opinion

PlNOLA, P. J.,

This is an action to enjoin defendants from interfering with plaintiff in its efforts to lease premises known as no. 486 Northampton Street, in the Borough of Edwardsville, and to require them to respond in damages for loss of rentals by plaintiff.

On November 4, 1966, a hearing was held on the ap[623]*623plication by plaintiff to continue the injunction heretofore granted.

It was stipulated by counsel as follows:

“1. That the record in a prior case entered to No. 7 May Term, 1964, in Equity, is admitted in evidence in this case.

“2. That the pleadings in this matter are admitted in evidence insofar as the allegations are admitted.

“3. That no testimony will be necessary to determine the matter insofar as it relates to the prayer for injunctive relief, but that further testimony may be necessary at some future time with respect to the claim for damages”.

Plaintiff is the owner of property no. 468 Northampton Street, Borough of Edwardsville, which, on August 17,1959, it leased to one Marvin Mutnik, with right to assign to a corporation to be formed for a term of 15 years, renewable for an additional 10 years. This lease was assigned on September 16, 1959, to Wayne Stores, Inc., a New York corporation.

On January 31, 1963, plaintiff entered into another lease with Wayne Stores, Inc., for property no. 486 Northampton Street. The lot is 30 feet by 1,000 feet, and the building erected thereon is 30 feet by 220 feet. Lessor agreed to maintain a driveway 30 feet by 1,000 feet between this property and the one which is the subject of the 1959 lease.

In the 1959 lease, paragraph 1, the premises were leased “to be used for retail sales of every description except as excluded herein, and kindred services. . . . It is specifically understood and agreed that no part of said demised premises shall be used by the Lessee, sub-lessees, concessionaires, or leased departments, as a retail food store or retail food market; provided, however, that this shall not prevent the use of said premises for the sale of food to be consumed on the premises. . . .”

[624]*624Part of paragraph 2 reads as follows:

“Lessor agrees that it will not use nor permit the use of the 30-foot parcel of land . . . and land in back of the land herein demised . . . nor any part thereof for any business or establishment in competition with that of the Lessee herein”.

The 1963 lease follows closely the same language with respect to the use of the premises. In paragraph 1, the premises are leased “to be used for retail sales of every description except as excluded herein, and for kindred and allied services. . . . The Lessee covenants and agrees that no part of the said demised premises shall be used by it, its sub-lessees, concessionaires, or leased departments as a retail food store or retail food market; provided, however, that this shall not prevent the use of said premises for the sale of food to be consumed on the premises”.

In paragraph 4, the rental of the premises is coordinated with the rental of the lease of 1959, so that the rental of both properties is treated as one. Under both leases, lessee has the right to assign the lease.

The term of the 1963 lease is significant. It is made for a period of 11 years and five months from the first day of February, 1963, and expires on June 30, 1974, the date of expiration of the 1959 lease.

Under paragraph 32, as in the 1959 lease, lessee has an option to extend the term for an additional 10 years’ period. Practically, the two leases operate as one.

Apparently, the separate lease was drawn in 1963, instead of rewriting a lease for both premises, because at that time, unknown to plaintiff, Wayne Stores, Inc., had assigned the 1959 lease to Nathan Marcowitz as security for a loan.

Plaintiff contends that by execution of the 1963 lease, the negative covenant prohibiting sales in competition with business in the premises described in the 1959 lease expired.

[625]*625Wayne Stores, Inc., filed a petition for an arrangement under chapter XI of the Bankruptcy Act of July 1, 1898, and on September 11, 1963, the lease dated January 31, 1963, was rejected, effective September 30, 1963, with the approval of the referee in bankruptcy. Such rejection accelerated all of the rentals due under the 1963 lease, but plaintiff made a settlement therefor and took possession of the premises.

In the spring of 1965, plaintiff alleges that it began negotiations with the Firestone Tire and Rubber Company for the rental of the premises no. 486 Northampton Street. It is also alleged that a lease was entered into on July 23, 1965, for the term of 20 years at a minimum monthly rental of $900 and that defendants interfered with the preparations for the use of the premises by the Firestone Company, threatening interruption of the use by legal action because the Firestone Company would engage in the sale of tires and automobile accessories, together with sundries, in competition with some departments in premises no. 468.

Defendants argue that the two leases were separate and independent of each other and that the rejection of the 1963 lease by the trustee in bankruptcy leaves the 1959 lease in full force and effect, including the negative covenant in question.

A preliminary injunction is to be issued when necessary to prevent immediate and irreparable harm which could not be compensated by damages and where greater injury would result by refusing the preliminary injunction than by granting it, and where the temporary injunction restores the parties to the status existing immediately prior to the allegedly wrongful conduct: Alabama Binder & Chemical Corporation v. Pennsylvania Industrial Chemical Corporation, 410 Pa. 214 (1963).

Because of the alleged unlawful action of the individual and corporate defendants, plaintiff contends [626]*626that it is losing each month an undetermined but substantial amount of rent and is in real danger of losing a valuable long-term lease. There is no reason to suppose that defendants would not make similar threats against any proposed lessee of the property involved in the Firestone lease. Plaintiff is, therefore, in the position of not being able to make any economic use of its property currently or in the future.

The injunction sought here is to forestall litigation or the threat of litigation by the individual and corporate defendants. Unless and until such threats stop, plaintiff will be unable to interest any possible tenant and will be unable to enter into a lease with any possible tenant. Especially after the alleged conduct of defendants with regard to the Firestone Company, plaintiff would be unable to open negotiations with possible tenants, and thus would not be in a position to know just how much the alleged unlawful acts of defendants were costing it in possible rentals. Since the Firestone lease is a percentage lease, it is impossible even to calculate the amount of rental lost because of the actions of defendants with regard to that lease. Adequate compensation by damages is, therefore, impossible.

Because of the alleged unlawful actions of defendants, the Firestone Company may enter into a long-term lease elsewhere unless affirmative action to suppress such unlawful actions is taken immediately.

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Cite This Page — Counsel Stack

Bluebook (online)
41 Pa. D. & C.2d 622, 1966 Pa. Dist. & Cnty. Dec. LEXIS 234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roddy-realty-inc-v-cadillac-real-estate-co-pactcomplluzern-1966.