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Property Keyed to French
Oakwood Village LLC v. Albertsons, Inc.
Citation:
104 P.3d 1226 (2004)Facts
In 1978, Albertsons entered into a ground lease with Oakwood Village LLC’s predecessor for a 42,800-square-foot plot in a shopping center being developed in Murray, Utah. The initial term was twenty-five years with eight five-year renewal options, totaling a potential sixty-five-year lease. Albertsons paid a fixed monthly rent of $1,667 with no escalations. Albertsons constructed and paid for its own building on the leased premises and operated a grocery store there for over twenty-one years. In 2001, Albertsons relocated to a competing shopping center one block away but continued paying rent on its vacant building at Oakwood Village. Albertsons allegedly kept the building vacant to restrict competition with its new store. Oakwood claimed this “going dark” caused a decline in sales for other tenants and led to vacancies in the shopping center. The lease contained no express covenant requiring continuous operation, no percentage-rent clause, no restrictive use clause, and granted Albertsons unrestricted rights to sublet or assign the lease.
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