Property Law Keyed to Cribbet
Piggly Wiggly Southern, Inc. v. Heard
Facts
In 1963 the predecessor to the Appellee (lessor) and the Appellant (lessee) entered into a lease agreement where the lessor agreed to construct a supermarket for the lessee according to the lessee’s plans. The lessee drafted the lease which was to commence in 1964 for a term of 15 years, and called for an annual base rent of $29,053.00 as well as a percentage rent of annual gross sales exceeding $2,000,000. The lease was renewed in 1979 for an additional seven years, with options to renew for two additional three year terms. The lessee exercised both subsequent two year options, and after it was acquired by a new corporation, one month into the second term of three years, closed its store, vacated the premises and moved to a new shopping center belonging to the new corporate owner. The lessee continued to pay the annual base rent under the lease and refused to sublease the premises to another store, despite interest from other supermarkets. The lessor filed suit against the le ssee for the alleged breach of the lease. The trial court found for the lessor. Lessee appealed.
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