Food Fair Stores, Inc. v. Blumberg
Maryland Court of Appeals
234 Md. 521, 200 A.2d 166 (1963)
- Written by Brianna Pine, JD
Facts
Stanley Blumberg (plaintiff) entered into several lease agreements with Food Fair Stores, Inc. (Food Fair) (defendant), under which Blumberg agreed to construct and lease a building and parking lot to Food Fair for use as a retail food supermarket. Food Fair agreed to pay, as annual rent, 1 percent of its gross sales, up to $2,000,000, but not less than $10,560 for the building and $1,200 plus 1 percent of its gross sales between specified thresholds for the parking lot. At some point after Food Fair began operating, it opened two additional supermarkets in the same area and planned to open a third. Blumberg sued, alleging that Food Fair’s expansion breached an implied covenant to use its best efforts to maximize sales at the leased premises. The trial court found partly in each party’s favor. Both parties appealed.
Rule of Law
Issue
Holding and Reasoning (Prescott, J.)
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