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Parkside Ctr. Ltd. v. Chicagoland Vending Inc.

The defendants violated an exclusivity covenant in the parties' shopping center lease by leasing space to a competing tenant.

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Parkside Center, Ltd. leased space in its shopping center to Chicagoland Vending, Inc. under a lease which contained a covenant restricting Parkside from leasing other space in the shopping center to businesses competitive with Chicagoland’s business. Chicagoland sued Parkside and its general partner, D. Kimbrough King, claiming the value of its leasehold was destroyed when Parkside breached the covenant by leasing space in the shopping center to a competitive business. A jury awarded Chicagoland $787,400 for damages to its leasehold plus attorney fees.

The central issue on appeal is whether the covenant was enforceable as a reasonable restriction on competition. In Parkside’s appeal in Case No. A01A0461, we find that the covenant was correctly construed as a valid, reasonable restriction on competition, and that there was evidence to support the jury’s verdict that Parkland breached the covenant and caused $787,400 in damages to Chicagoland’s leasehold. In Chicagoland’s cross-appeal in Case No. A01A0757, we conclude that the trial court properly reduced the attorney fees awarded to Chicagoland under OCGA § 13-6-11 to $74,000, and correctly directed a verdict against Chicagoland’s additional claim that Parkside and King tortiously interfered with its lease rights.

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