Helzberg’s Diamond Shops, Inc. v. Valley West Des Moines Shopping Center, Inc.
United States Court of Appeals for the Eighth Circuit
564 F.2d 816 (8th Cir. 1977)
Helzberg's Diamond Shops, Inc. (Helzberg) (plaintiff) entered into a written contract with the Valley West Des Moines Shopping Center, Inc. (Valley West) (defendant). Helzberg was a Missouri corporation and Valley West was an Iowa corporation. The contract stipulated that Valley West was not to allow more than two other full-line jewelry stores to move into the shopping center. Subsequently, Valley West entered into lease agreements with two other jewelry stores and allowed those jewelry stores to be located within the shopping center. After learning Valley West entered a third lease agreement with a full-line jewelry store, Lord's Jewelers (Lord's), Helzberg filed a complaint in federal court based on diversity jurisdiction seeking injunctive relief to restrain Valley West from breaching the lease agreement. Valley West moved to dismiss the action for failure to join Lord’s, which it claimed was an indispensable party to the suit. The district court denied the motion and granted Helzberg preliminary injunctive relief. Valley West appealed.
Rule of Law
Holding and Reasoning (Alsop, J.)