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Title: The Need for Legislative Authorization of Noncompete Servitudes in Commercial Leases
Authors: McBride, Annie G.
Keywords: Noncompete Servitudes
Commercial Leases
Issue Date: 2015
Publisher: Loyola University New Orleans College of Law
Citation: 61 Loy. L. Rev. 325
Abstract: Winn-Dixie Stores, Inc. is a Florida-based supermarket chain that operates over 500 grocery stores across the southeastern United States. In the Greater New Orleans area alone, Winn-Dixie operates nearly twenty stores. Winn-Dixie stores generally "anchor" shopping centers, meaning that Winn- Dixie stores attract customers to shopping centers, and those customers in turn patronize other stores in those centers.3 As a general policy, when Winn-Dixie agrees to anchor a shopping center, its leases include a "Grocery Exclusive" clause. This Grocery Exclusive clause purports to prohibit other tenants in that shopping center from selling certain grocery items in competition with Winn-Dixie. In an attempt to establish its Grocery Exclusive clause as a real property right enforceable against third parties (i.e., a noncompete servitude), Winn-Dixie's leases declare that the Grocery Exclusive clause "shall be deemed both a covenant and a condition and shall run with the land."' Additionally, Winn-Dixie records its leases in the public registry to put others on notice as to the clause's existence.
ISSN: 0192-9720
Appears in Collections:Law Review

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