Can a commercial landlord enforce restrictive covenants against a commercial tenant of a shopping centre?

Alberta, Canada


The following excerpt is from Liquor Depot at Riverbend Square Ltd. v. Time for Wine Ltd., 1997 CanLII 14829 (AB QB):

The Spike v. Rocca decision dealt with two leases of shopping centre premises, each of which contained a covenant of the tenant limiting the use of premises to a particular purpose and a covenant of the landlord not to permit a competing use in the shopping centre. The decision comments that, “the reciprocal restrictive covenants constituted a part of the consideration between landlord and tenant”, and further that, “One of the inducements to become tenant to a mall is the security of the knowledge of non-competition within the development”. The judgment concluded with the following statement: I am therefore of the opinion and so hold that, notwithstanding the fact that there is no direct privity of contract as between [the two tenants], each being individual tenants to a common landlord, the clear intent of each lease is such that it creates a community of interest as between tenants of parallel business operations, and, in consequence an indirect privity of contract giving each a direct interest in the carrying out of the terms of the lease by the other.

Other Questions


Is a party who is not an applicant in a restrictive covenant action against a party that is not a party to the restrictive covenant? (Alberta, Canada)
When a business is sold and the former owners of the business are restricted from competing directly with the new business, can the new owners enforce restrictive covenants? (Alberta, Canada)
What is the test for restrictive covenants in a commercial contract? (Alberta, Canada)
What is the test for an employer to enforce a restrictive covenant? (Alberta, Canada)
What is the test for declining to enforce a covenant where the character of the neighbourhood has changed significantly since the time of the covenant was imposed? (Alberta, Canada)
What is the test for enforcing a restrictive covenant? (Alberta, Canada)
Is a restrictive covenant enforceable? (Alberta, Canada)
In what circumstances will a tenant in common be required to join in an action to enforce a covenant? (Alberta, Canada)
How have the courts in Scotland dealt with a decision made by the Landlord and Landlord Board in relation to the sale of land in the area? (Alberta, Canada)
Does the fact that a landlord has reserved the right to enter the premises to effect repairs, or to keep the premises in a state of repair, have any liability towards the tenant? (Alberta, Canada)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.