November 01, 1996

Going Dark Aggressively (1996, 10:06)

Going Dark Aggressively

Probate and Property, November/December 1996, Volume 10, Number 6

By Patrick A. Randolph Jr.

Consider a shopping center with a successful anchor department store tenant_so successful that the developers of a proposed new center nearby are courting it. The tenant is not happy where it is, but it has a long-term lease. The tenant suspects that if it opens at the new location, its own competition will doom the existing center. If the landlord cannot find a substitute anchor tenant to compete with the old tenant and the good will it has created, the other smaller tenants will fail or vacate and the center itself will become dark. The anchor tenant's lease contains no express continuous operation duty. Nevertheless, would the old center's owner have remedies against the anchor to prevent it from competing with its own leased space?

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