Hartig Drug Company v. Hartig
Supreme Court of Iowa
602 N.W.2d 794 (1999)
Hartig Drug Company (plaintiff) leased a Dubuque store from Kenneth Hartig (defendant) under a lease providing for base rent plus 2.75 percent of gross sales, intended to give Hartig a stake in the store's success. Hartig Drug later began selling lottery tickets and postage stamps as customer conveniences, earning modest government commissions on millions of dollars in face-value sales. When Hartig Drug sued for repairs, Kenneth counterclaimed that gross sales should have included the full face value of lottery and stamp sales, and the trial court agreed, ordering over $128,000 in additional rent.
Whether lottery and stamp sales are ordinarily included as part of a retail tenant's gross sales for purposes of calculating percentage rent.