Stop & Shop, Inc. v. Ganem
Supreme Judicial Court of Massachusetts
200 N.E.2d 248 (1964)
Ganem (defendant) leased commercial space to Stop & Shop (plaintiff) under a lease requiring a set rent plus a percentage of sales above a threshold, with no requirement that the space be used for any particular purpose and no prohibition on opening competing stores elsewhere; Ganem knew Stop & Shop operated a grocery chain when the lease was signed. After opening two competing grocery stores nearby, Stop & Shop decided to close the leased location's grocery store while continuing to pay rent under the lease; Ganem counterclaimed seeking to force continued operation and a percentage of sales from all of Stop & Shop's locations. The trial court dismissed Ganem's counterclaim, and Ganem appealed.
Whether, when a commercial lease requires that a portion of sales be paid as all or part of a rental fee, the lessor can require the lessee to continue operating the business during the lease term, or prohibit the lessee from operating competing businesses during the lease term, if those requirements are not explicitly provided in the lease.