Davidson Brothers, Inc. v. D. Katz & Sons, Inc.
Supreme Court of New Jersey
579 A.2d 288 (1990)
Davidson Brothers (plaintiff) sold its former grocery store property to Katz (defendant) subject to a covenant barring grocery store use; the property was later acquired by a housing authority and leased to C-Town specifically to operate as a grocery store, and Davidson sued Katz, the authority, and C-Town to enforce the covenant. The trial court granted summary judgment for the defendants because the burden didn't run with the land under the traditional touch-and-concern doctrine, and the appellate division affirmed on the alternative ground that the benefit didn't run with the land either; Davidson sought review.
Whether a real covenant is enforceable if the court determines that the covenant is unreasonable.