It seems fitting that for the 200th Ruminations blog posting we would return to a recurring theme: “Words matter,” and do so in the context of a very recent court decision interpreting a lease’s exclusive use restriction. If you want to read the December 16 North Carolina Court of Appeal’s opinion in Charlotte Pavilion Road Retail Investment v. North Carolina CVS Pharmacy, click HERE. If you don’t, here’s a short synopsis.
The tenant lost because the restriction wasn’t written in a way so as to protect the tenant against what it could have foreseen. The tenant’s negotiators in the North Carolina lease should have read the Texas case that their litigators found when the North Carolina lease dispute went to court. That way, even if they didn’t intuitively understand the deficiency in their “formula” exclusive use language, they might have gotten a clue as to what they should have written. [Read more…]