Simon Property Group (Texas) L.P. v. May Department Stores Co.

943 S.W.2d 64, 1997 WL 75579
CourtCourt of Appeals of Texas
DecidedApril 17, 1997
Docket13-96-550-CV
StatusPublished
Cited by18 cases

This text of 943 S.W.2d 64 (Simon Property Group (Texas) L.P. v. May Department Stores Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simon Property Group (Texas) L.P. v. May Department Stores Co., 943 S.W.2d 64, 1997 WL 75579 (Tex. Ct. App. 1997).

Opinion

OPINION

CHAVEZ, Justice.

This is an appeal of the district court’s denial of a temporary injunction to halt the construction of a new Foley’s department store in McAllen, Texas. Among their respective points of error, appellees, Dillard Department Stores, Inc. and Dillard Texas Operating Limited Partnership (collectively “Dillard”), and Simon Property Group (Texas), L.P. (“Simon”) argue that the trial court abused its discretion in failing to enjoin The May Department Stores Company (“May”) from continuing the proposed addition to La Plaza Mall (“the mall”) of a new Foley’s store. We affirm the trial court’s denial of injunctive relief.

Standard of review

Our review of an interlocutory order denying injunctive relief is strictly limited to determination of whether there has been a clear abuse of discretion by the trial court in denying the interlocutory order. Davis v. Huey, 571 S.W.2d 859, 861-62 (Tex.1978); State v. Cook United, Inc., 469 S.W.2d 709, 711 (Tex.1971). Accordingly, the merits of the underlying case are not presented for review.

Applying this standard, we consider (1) whether the trial court reasonably could have reached only one decision, 1 and (2) whether the trial court’s decision was so arbitrary and unreasonable as to amount to a clear and prejudicial error of law. 2

History of La Plaza dispute

May, the parent entity of Foley’s, is one of the largest department store operators in the United States. Simon is the mall’s developer and Dillard is a competitor of May. Simon filed a declaratory judgment action, naming *67 Dillard and May as defendants, seeking the construction of two apparently conflicting real estate easement and operation agreements 3 (“REAs”), and related supplemental agreements. 4 The REAs central to this case establish correlative rights at the mall among particular “anchor” retailers, including Dillard and May, and the mall’s developer, Simon. At issue is May’s desire to replace the mall’s first and oldest anchor store with a new, much larger Foley’s store, which Dillard opposes.

In the early 1970s, the Jones family conveyed in fee a large tract of land in McAllen, Texas to a Simon affiliate for the purpose of developing a regional shopping center, later to be named “La Plaza Mall.” On July 13, 1973, Simon reconveyed a much smaller tract of the mall site in fee to a Jones affiliate, to construct and operate the mall’s first anchor department store — a luxury boutique named “Jones & Jones.” 5

On the same date as Simon’s reconveyance to Jones, Simon and Jones entered into a Reciprocal Operating and Easement Agreement (“Jones REA”) which would govern the relationship between Simon and Jones at the mall. The agreement was filed and recorded in the real property records of Hidalgo County, Texas, where the real property is situated. The Jones REA contemplated that Jones, J.C. Penney and a third, unidentified department store would anchor the mall. In accordance with the specifications of the Jones REA, Jones proceeded to construct a store consisting of one level, a mezzanine and a penthouse. The Jones store contained approximately sixty thousand square feet of floor space.

Among other things, the Jones REA provides:

Section 7.01. Developer [Simon] and Operator [Jones] agree that there shall be no verticle [sic] or lateral additions to the buildings ... except that, in the event that the Shopping Center Site shall be hereafter expanded by the acquisition of contiguous territory and area, parties agree to negotiate in good faith for the respective rights of expansion of their respective facilities [emphasis added]; ...
Section 8.01. At its own expense the Operator [Jones] may, at any time ..., make any additions, alterations, improvements or replacements, interior or exterior, structural and nonstructural, ordinary as well as extraordinary, in, on, or of the Floor Area of the Operator Site in whole or in part, which Operator [Jones] in its sole discretion, may deem necessary or desirable, provided, however, that any such exterior alteration or improvement is consistent with the Site Plan and shall not ... (iii) for the first 30 years after the Operator Building is first opened ... include demolition of the Operator Building except for the purpose of promptly replacing it with another building complying with [the Jones REA].
Section 10.03. (a) For so long as the Developer [Simon] shall operate an enclosed mall regional shopping center, Operator [Jones] shall not, without the consent of the Developer: ... (ix) add any building or structure to the Operator Site, or reduce the area of the Common Area on the Operator Site, except as to Expansion and as may be expressly otherwise permitted in this Agreement. Nothing contained hereinabove in this Section 10.03 shall be deemed to prohibit Operator from exercising any of the rights granted it elsewhere in this Agreement ...
Section 12.03....
(d) In respect of any matter which, under this Agreement, Operator [Jones] may do or perform with respect to its Site only with the consent or approval of Developer
*68 [Simon], no such consent or approval shall be deemed to be required if the Developer is suffering or permitting the owner of any other site, with whom the Developer has executed a Reciprocal Operating Agreement, to do such matter with respect to their site.

Simon brought Dillard to the mall as its third anchor department store, and conveyed a portion of the mall site to a Dillard affiliate in fee. 6 A Construction, Operation and Reciprocal Easement Agreement (“Dillard REA”) was entered into by Simon and Dillard in 1977. The Dillard REA, to which Jones was not a signatory, provides:

Definitions
1. “Party” — each separate principal business entity now or hereafter making, entering into and signing this Operating Agreement, ...
Paragraph
4.1 ...
(2) No Party shall expand any Budding, or construct any additional building, ... without prior written approval of each other party.

In late December 1977, responsive to the execution of the Dillard REA, Dillard, Simon and Jones entered into a Supplement to Reciprocal Easement and Operation Agreements (“First Supplement”). The First Supplement provides:

3.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
943 S.W.2d 64, 1997 WL 75579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simon-property-group-texas-lp-v-may-department-stores-co-texapp-1997.