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RCC Properties, L.L.C. v. Wenstar Properties, L.P.

930 So.2d 1233 (2006)

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RCC Properties, L.L.C. v. Wenstar Properties, L.P.

Louisiana Court of Appeal

930 So.2d 1233 (2006)

Facts

AZT Winnsboro Louisiana, Inc. (AZT) owned adjacent parcels of land and sold one of the parcels to Wenstar Properties, L.P. (Wenstar) (defendant). Wenstar bought the parcel in order to operate a Wendy’s restaurant franchise on it. As part of the sale agreement, AZT granted a servitude to Wenstar over the adjoining parcel. This servitude prohibited the adjoining parcel from being used for the operation of any restaurant with a drive-in window that sold burgers or chicken sandwiches as its primary business. The terms of the agreement granted this servitude for a period of 20 years, and the agreement was properly recorded. A few years later, AZT sold the servient parcel to RCC Properties, L.L.C. (RCC) (plaintiff). RCC subsequently received an offer for that property from a corporation that wanted to acquire the parcel to build and operate a Kentucky Fried Chicken restaurant franchise. The potential purchaser would not agree to the sale, however, with the servitude agreement in place. RCC filed a petition seeking a declaratory judgment asking for the servitude to be declared invalid or inapplicable. The trial court held that the servitude was invalid because it was unclear and ambiguous. Wenstar appealed.

Rule of Law

Issue

Holding and Reasoning (Drew, J.)

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