Oakwood Village LLC v. Albertsons, Inc.

Albertsons (defendant) leased anchor-tenant space in a shopping center from Oakwood's predecessor (plaintiff) for 25 years, in exchange for the landlord's promise not to lease other space to competing supermarkets. Twenty-one years in, Albertsons closed the store but kept paying rent, blocking the landlord from bringing in a new anchor grocery tenant, which led to other vacancies and declining sales in the center. The landlord sued for breach of an implied covenant of continuous operation and good-faith dealing.

Whether a retail tenant vacating leased premises may continue paying rent to limit competition if the lease does not expressly bar that action.