Justice Sharon Aarons
C-Town Supermarket sought a preliminary injunction enjoining defendants from operating their retail store at the subject shopping center. They also sought a declaration that the restrictive covenant in the deed was valid and enforceable. King Jerome Realty owned the building adjacent to C-Town, with Bondi and Family Dollar as King’s tenants. The court noted a restrictive covenant would be enforced when the parties’ intent was clear and the limitation imposed was reasonable and not offensive to public policy. It found the intent of the covenant here was to prohibit competition between C-Town and an adjacent store. Also, the court stated C-Town had standing to enforce the covenant in the deed as it was a third-party beneficiary, noting the deed to the premises was a valid, binding contract expressly intending to benefit C-Town by eliminating competition. As such, it ruled C-Town may seek to enforce the covenant. Thus, as the court found C-Town established a likelihood of success on the merits, irreparable harm if relief was not granted and that the equities balanced in its favor, C-Town’s order to show cause seeking to enjoin defendants was granted.
