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Property Keyed to Rabin
City of Bowie v. MIE Properties, Inc
Facts
In 1986, MIE Properties, Inc.’s (Plaintiff) predecessor in title and the City of Bowie (Defendant) covenanted that Plaintiff’s predecessor in title would limit the development of its property to fourteen enumerated uses. Additionally, the parties agree that the property in question would be developed into a science and technology, research and office park. In 2001, Plaintiff leased some of its space to a dance studio. In 2002, Defendant sued to enjoin Plaintiff’s space from being used as a dance studio. Plaintiff counterclaimed for declaratory judgment to render the covenant unenforceable due to changes in circumstances that precluded the covenant’s purpose. The trial court ruled in favor of Defendant. The court of appeals reversed, stating that the outcome depended on the “reasonable probability” that the parties can achieve the purpose of the covenant within a reasonable time rather that the “theoretical possibility” that the trial court had considered.
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