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Contracts Keyed to Kuney
Walgreen Co. v. Sara Creek Property Co.
Citation:966 F.2d 273 (1992).
CaseCast™ – "What you need to know"
Walgreen, a “discount” chain store began operating a store in Milwaukee’s Southgate Mall in 1951. In 1971, it signed a 30-year, 6 month term lease with the mall’s landlord, Sara Creek. The lease included an exclusivity clause in which Sara Creek promised to not lease any other mall space to a pharmacy or a store which contained a pharmacy.
In 1990, Sara Creek lost an anchor store tenant. Sara Creek informed Walgreen that it planned to buy out the defunct tenant and install a “deep discount” chain store called Phar-Mor. The store would be 100,000 square feet, of which 12,000 square feet would be occupied by a pharmacy.
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