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The Leasing Hotline

By ALM Staff | Law Journal Newsletters |
September 26, 2007

Competing Store Does Not Interfere with Quiet Enjoyment

Where the lease does not prohibit the landlord from operating a competing store next door to the tenant, a tenant cannot prevail on a quiet enjoyment theory. Ghanbari v. Tran d/b/a M.D. Market, No. 09-06-548 CV, Court of Appeals of Texas Ninth District, Beaumont, March 1, 2007.

The landlord leased part of a building to the tenant to operate a convenience store and used the rest of the building as a warehouse. A few years later, the landlord and tenant had a dispute regarding parking rights. When the tenant refused a rent increase, the landlord fenced in part of the parking lot, blocking customer access to the store from the parking lot. The tenant then sought a restraining order requiring the landlord to remove the fence and later sought an injunction restraining the landlord from obstructing the tenant's use of the parking lot. Thereafter, the landlord opened a convenience store in the portion of the building previously used as a warehouse. The tenant filed an emergency motion for contempt, arguing that the landlord violated the temporary injunction by operating a store and using the lot. The tenant further argued that the landlord had constructively evicted the tenant.

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