STOP & SHOP, INC. v. GANEM 347 Mass. 697 (1964) CASE BRIEF

STOP & SHOP, INC. V. GANEM
347 Mass. 697 (1964)
NATURE OF THE CASE: This action was taken for declaratory relief of a contract provision in a lease. Ganem (D), landlords, challenged the decision in favor of Stop (P), tenant, ruling that the parties' lease did not expressly or impliedly require P to use the demised premises for any particular purpose, keep the premises open, or engage in the supermarket business on those premises. Ds argued that the lease included an implied covenant to continue the supermarket operations.
FACTS: Stop & Shop, Inc. (P) leased a supermarket from Ganem (D). The minimum rent was $22,000 a year plus 1.25% of all gross sales above $1,269,230.60 made each year if total sales exceeded $3,000,000 that year. The lease term was for 13 years. P had operated the market for ten years and the percentage rent clause was paid on only two occasions. P desired to discontinue its supermarket on the premises, but fully intended to continue paying the fixed rent rate until the end of the lease. P sought declaratory relief so that it could close its premises.

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LEGAL ANALYSIS:





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