Gotlieb v. Taco Bell Corporation

871 F. Supp. 147 (1994)

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Nature of the Case

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Facts

Ps entered into a 20-year lease with D effective August 15, 1991. Payments were to begin on June 15, 1992. D was also responsible for taxes and utilities. D was obligated to obtain permits and approvals for restaurant construction and operation. D could cancel if it was unable obtain the permits and approvals by February 15, 1992. D was to pay liquidated damages for breach of the lease. Local community and religious groups began an organized effort to oppose the construction and operation of a D restaurant at the subject location, and against fast-food establishments in the community generally. On February 10, 1992, D sent Ps a letter requesting alteration of the lease terms. D filed a permit application on February 14, 1992, and repudiated the lease by letter on the same date. Ps refused any modifications and repudiations. P sued D in June 1992 for past and future rent, and acceleration of all future rent due under the lease. D refused to pay. The judge granted Ps' motion for summary judgment. P and D agreed to a trial before the magistrate for damages. During trial, P testified that they had entered a new lease that included higher rental payments