Teodori v. Werne

490 Pa 58 (1980)

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Nature of the Case

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Facts

Tenant leased a retail showroom for his jewelry business, and the lease contained a non-compete clause for the landlord not to rent space to a jewelry or gift shop. Tenant's rent called for a minimum payment of $437.50 and 5% of gross proceeds from jewelry and 10% from gifts. Tenant was also to pay $.10 per square foot annually for maintenance, and any increases in taxes and all charges for gas, water, sewer, light, power, heat, and telephone. The agreement also had a provision to confess a judgment in event of a breach of the lease. Tenant was in arrears and Landlord moved against him and confessed a judgment for $7,056.29. Tenant appeared two weeks later and petitioned to open both of the confessed judgments. Tenant asserted that Landlord had violated the noncompete clause by leasing a space to Pennsylvania Wholesalers to sell jewelry and a gift shop. After a short hearing, Tenant's petition to open was dismissed. Tenant appealed, and the Superior Court affirmed, and Tenant appealed again.