Rowe v. Great Atlantic & Pacific Tea Co., Inc.
Court of Appeals of New York
385 N.E.2d 566 (1978)
Rowe (plaintiff) leased property to supermarket operator A&P (defendant) under leases containing no express restriction on assignment, including a later lease with a percentage-rental clause tied to A&P's sales. After disappointing profits, A&P closed the store and assigned the lease to a competing supermarket chain over Rowe's objection; Rowe sued, arguing an implied covenant against assignment arose from Rowe's reliance on A&P's identity, and while the trial court ruled for A&P, the appeals court reversed based on the percentage-rental clause, prompting A&P's appeal.
Whether a shopping-center tenant can be restricted from assigning its lease when the landlord entered the lease in sole reliance on the tenant's identity.