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Treadwell v. Investment Franchises Inc.

Plaintiffs were not entitled to an interlocutory injunction pending the resolution of their claim that they were entitled to use defendant's parking area under a license agreement because they could not show irreparable harm.

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Plaintiffs Jack Treadwell and Forsyth Inns, Inc. “Treadwell” appeal from the denial of their request for a temporary and interlocutory injunction. We affirm.

Treadwell owns and operates a Ramada Limited motel on his property; Investment Franchises, Inc., owns and operates a Shoney’s Restaurant on an adjacent parcel. The dispute arose when Investment Franchises, Inc., placed obstructions around the parking area behind its restaurant to prevent Treadwell’s motel guests and employees from using the area. Investment Franchises granted the rights to use the parking area to Treadwell’s predecessor-in-title via a license agreement dated October 29, 1975. The term of that agreement was for “ten years or for so long as a motel with Ramada Inn franchise is located and operated upon the land.” In July 1999, Investment Franchises notified Treadwell by letter that it had revoked any license or permission to the parking rights on the basis that the license agreement had expired on October 29, 1985, ten years from its execution. Contemporaneously, Investment Franchises barricaded and blocked off access to the parking area. Treadwell replied that it is entitled to continued use of the parking area under the license agreement because a Ramada Inn franchise is still operated on the property; and it demanded removal of the barricade. When Investment Franchises refused to comply, Treadwell sued to remove the obstruction, claiming interference with its rights under the license agreement.

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