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Red Sage Limited Partnership v. Despa Deutsche Sparkassen Immobilien-Anlage-Gesellschaft MBH
United States Court of Appeals for the District of Columbia Circuit
254 F.3d 1120 (2001)
- Written by Alex Ruskell, JD
Facts
Red Sage Limited Partnership (plaintiff) operated several restaurants in a building owned by Despa Deutsche Sparkassen Immobilien-Anlage-Gesellschaft MBH (defendant). When Red Sage originally leased space in the building from the building’s prior owner, a clause in the lease entitled Red Sage to a 50 percent rent abatement if the owner leased space to another “food service establishment of any kind.” After Despa acquired the building, it leased space to Cakes & Company, a specialty cake baker. Red Sage sued, and the court ruled in Despa’s favor, finding that the 50 percent rent abatement constituted an improper penalty. Red Sage appealed.
Rule of Law
Issue
Holding and Reasoning (Tatel, J.)
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