Davidson Brothers, Inc. v. D. Katz & Sons, Inc.
New Jersey Superior Court, Appellate Division
643 A.2d 642 (N.J. Super. Ct. App. Div. 1994)
Following the New Jersey Supreme Court's remand establishing a reasonableness test for real covenants, the trial court found on remand that the no-grocery-store covenant in Davidson's (plaintiff) deed to Katz (defendant) was unreasonable, given evidence that the closure of the George Street grocery store created serious hardship for downtown residents without cars, that George Street was the only feasible location for a downtown grocery store, and that a lack of a nearby grocery store increased food prices and harmed residents' diets while grocery stores also anchor surrounding smaller retail businesses; Davidson appealed the trial court's ruling for the defendants.
Whether a real covenant that is contrary to public policy is enforceable.