El Di, Inc. v. Town Of Bethany Beach

477 A.2d 1066 (Del. 1984)

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Nature of the Case

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Facts

El Di (D) purchased the Holiday House restaurant in 1969. In December 1981, the State Alcoholic Beverage Control Commission granted Holiday House a license to serve alcoholic beverages. The Town of Bethany Beach (P) filed suit to permanently enjoin the sale of alcoholic beverages under the license. The chain of title for Holiday House included a restrictive covenant prohibiting the sale of such beverages. By 1909, only 15 percent of the Town was restricted in such a matter, and the restriction was established in 1900 and 1901. Most of D's customers brown bagged alcoholic beverages with them, and D applied for the license because of the sheer numbers of patrons who brown bagged. The town itself had only 330 residents, but in the summer months, there were at least 48,000 people within a four-mile radius. The trial court granted the injunction to P. D appealed.