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Keywords

contracttortappealleasecorporation

precedentappealleaseoverruled

Related Cases

Sampson Investments by Sampson v. Jondex Corp., 176 Wis.2d 55, 499 N.W.2d 177

Facts

Sampson Investments owns the Westlane Shopping Center and entered into a lease agreement with Jondex Corporation, which operated a 'Pick 'N Save' store as the anchor tenant. In June 1990, Jondex informed Sampson that it would cease operating the store but would continue paying rent, and subsequently entered into a lease with Mega Marts to operate a store nearby. Sampson sued Jondex and Mega Marts, claiming breach of lease and tortious interference.

The relevant facts are not in dispute. Sampson, a commercial real estate manager and developer, owns Westlane Shopping Center in West Allis, Wisconsin. Jondex operates warehouse-style supermarkets.

Issue

Did the lease agreement require Jondex to continuously operate a retail warehouse store, and can Sampson maintain a claim for tortious interference with contract against Mega Marts despite no breach of the lease?

The first issue is whether the court of appeals erred when it concluded that paragraph three of the lease requires Jondex to continuously operate a retail warehouse store.

Rule

A commercial lessee is not required to continuously operate a business in the absence of a clear, express provision in the lease requiring continuous operation.

This court has, for well over one hundred years, distinguished between continuous use clauses and restrictive use clauses.

Analysis

The court analyzed the language of the lease and determined that it did not contain an express requirement for continuous operation. The court referenced previous cases that established the principle that unless a lease explicitly states a requirement for continuous operation, lessees have the option to refrain from using the premises while still fulfilling their obligation to pay rent. Therefore, Jondex's decision to cease operations did not constitute a breach.

The court of appeals and Sampson maintain that the court of appeals' decision in Century Shopping Center Fund I v. Crivello requires a different result… Since the court of appeals did not follow the precedent set by this court, the decision in Century does not accurately state the law, and to the extent it contradicts the law as expressed herein, it is overruled.

Conclusion

The Supreme Court reversed the court of appeals' decision that upheld the breach of lease claim and the tortious interference claim, concluding that Jondex did not breach the lease and that Sampson could not maintain a tortious interference claim.

The decision of the court of appeals is reversed and the cause remanded to the circuit court for further proceedings consistent with this opinion.

Who won?

Jondex Corporation and Mega Marts prevailed in the case because the court found that Jondex was not required to continuously operate the store under the lease agreement.

The court's final decision or holding in 1–2 sentences.

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