Reichert v. Rubloff Hammond, L.L.C., 264 Neb. 16

Summary

The Supreme Court of Nebraska held that a mall owner breached lease amendments by leasing space to a competing fine-jewelry store, despite the amendments' exclusive-remedy provision. However, because the provision clearly limited the tenants' remedies to a 50 percent rent reduction or lease termination, the court reversed the permanent injunction issued by the district court.

Holdings

1. The plain language of the lease amendments granted the Reicherts the exclusive right to operate fine jewelry stores in the mall through July 31, 2004, so long as they remained open and operating and were not otherwise in default.
2. Hammond breached the exclusivity provision when it executed a contract leasing mall space to Ridco for operation of a competing fine-jewelry store.
3. The exclusive remedy provision precluded the Reicherts from obtaining a permanent injunction because it clearly limited their remedies for this breach to a 50 percent reduction in rent or termination of the lease.

Questions Presented

1. Whether the lease amendments promised the Reicherts an exclusive right to operate fine jewelry stores in the mall.
2. Whether Hammond breached the exclusivity provision when it executed a lease with Ridco for a competing jewelry store.
3. Whether the contractual provision making a 50 percent rent reduction or lease termination the Reicherts' sole and exclusive remedies precluded permanent injunctive relief.

Disposition

reversed