Davidson Bros., Inc. v. D. Katz & Sons, Inc.

643 A.2d 642 (1994)

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Nature of the Case

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Facts

P owned property on which he operated a supermarket. The store operated at a loss because of competing business from P's other store located two miles away. P then conveyed the property to Katz & Sons, Inc. (D) with a restrictive covenant not to operate a supermarket on the premises. The restriction was to run for 40 years, and the restriction was to be a covenant attached to and running with the land. The deed was recorded. Even tually, the New Brunswick Housing Authority purchased the property from D. The Authority, having actual notice of the covenant, decided to establish a supermarket on the property seven years after the original covenant was made and recorded. P sued D. The trial court determined that a covenant prohibiting the use as a supermarket of a property in downtown New Brunswick was unenforceable. P appealed.