Whitinsville Plaza, Inc. v. Kotseas

Kotseas (defendant) conveyed land to a trust (later Plaza's (plaintiff) predecessor) subject to a covenant barring Kotseas from using his retained adjoining land to compete with the discount store the trust planned to build; after the trust conveyed its land to Plaza subject to the covenant, Kotseas later leased his adjoining land to CVS (defendant) for a competing discount store, with the lease expressly subject to the deed restrictions. Plaza sued for an injunction and damages; the trial court dismissed, holding the noncompetition covenant did not touch and concern the land and so did not run with it, binding CVS, and Plaza appealed.

Whether a reasonable covenant restricting land from being used in competition with a neighboring property touches and concerns the land such that it runs with the land and binds subsequent owners.