Foot Locker Retail, Inc. v. Madison Bay Fair LLC C
Foot Locker Retail, Inc. (Foot Locker) operates retail stores in the Bay Fair Center Mall in San Leandro (the mall). Three of the lease agreements between Foot Locker and Madison Bay Fair LLC (Madison), which operates the mall, included a “Protected Use” clause forbidding Madison from leasing other premises in the mall for the operation of a store whose primary use was the sale of athletic footwear or athletic apparel. “Primary use” was defined to mean that the store “displays athletic footwear or athletic apparel in more than fifteen percent (15%) of the floor area of such premises.” Under the agreements, if Madison violated this provision, Foot Locker was entitled to pay “in lieu” rent in the amount of five percent of its gross monthly sales, plus utilities, rather than the normal rent.
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