Michaels Stores Inc. v. Castle Ridge Plaza Associates
United States District Court for the District of New Jersey
6 F. Supp. 2d 360 (1998)
- Written by Brianna Pine, JD
Facts
Michaels Stores, Inc. (Michaels) (plaintiff), a nationwide chain of arts-and-crafts stores, wanted to open a store in a shopping center owned by Castle Ridge Plaza Associates (CRPA) (defendant). Castle Ridge L.T., Inc. (Castle Ridge) (defendant), one of the center’s tenants, assigned its lease to Michaels. CRPA objected to the assignment, asserting that Castle Ridge’s lease barred use of the premises for an arts-and-crafts store. Michaels sued CRPA and Castle Ridge seeking a declaratory judgment that its intended use of the premises was permitted under the lease. Shortly thereafter, Rag Shop Wayne, Inc. (Rag Shop), another tenant in the shopping center, moved to intervene as a defendant. Rag Shop claimed that its lease with CRPA contained an exclusivity clause granting it the sole right to operate an arts-and-crafts store in the center. Rag Shop argued that Michaels’ intended use would violate this exclusivity provision and harm its business. Michaels, CRPA, and Castle Ridge opposed Rag Shop’s motion.
Rule of Law
Issue
Holding and Reasoning (Chesler, J.)
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