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<b><i>In the Spotlight:</i></b> Exclusive Use Provisions

By Ruth Schoenmeyer
April 01, 2016

When grocery store giant Winn-Dixie Stores Inc. found itself in competition with dollar stores that were leasing premises in the same shopping complexes, it brought suit for violation of exclusive-use provisions in its leases. Winn-Dixie Stores Inc. v. Dolgencorp, LLC, 746 F.3d 1008 (11th Cir. 2014). The surprise was that Winn-Dixie sued not its landlords, but the three dollar store chains operating in the pertinent 100+ shopping centers!

In last month's newsletter, we looked at this type of situation from the landlord's point of view, and noted that, instead of being relieved that they are not being made parties to such disputes, landlords might have much to fear from in-fighting among tenants over breach of exclusive-use clauses.

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