Winrock Enterprises, Inc. v. House of Fabrics of New Mexico, Inc., 11653
| Citation | 579 P.2d 787, 1978 NMSC 38, 91 N.M. 661 |
| Case Date | May 10, 1978 |
| Court | Supreme Court of New Mexico |
Page 787
v.
HOUSE OF FABRICS OF NEW MEXICO, INC., and House of Fabrics,
Inc., Defendants-Appellants.
Page 788
[91 NM 662] Modrall, Sperling, Roehl, Harris & Sisk, Judy A. Fry, Albuquerque, for defendants-appellants.
Rodey, Dickason, Sloan, Akin & Robb, John P. Burton, Albuquerque, for plaintiff-appellee.
EASLEY, Justice.
Plaintiff-appellee, Winrock Enterprises, Inc. (Winrock) sought a permanent injunction to prevent defendants-appellants, House of Fabrics of New Mexico, Inc. and House of Fabrics, Inc. (House of Fabrics) from conducting business in Coronado Shopping Center in violation of a lease agreement between the parties which restricted House of Fabrics from establishing a competing business within a radius of two miles from the Winrock Shopping Center.
The trial court granted the injunction. We affirm.
House of Fabrics contends that the radius clause is void because it constitutes an unreasonable restraint of trade and that, even if the clause is valid, Winrock failed to prove the necessary harm which would warrant injunctive relief.
The parties stipulated to the facts. The lease provided for a minimum rent plus a percentage of the gross income from sales above a certain amount. The sales of House of Fabrics had never reached a large enough volume to require payment of any percentage rent. Approximately ninety percent of the businesses in Winrock Shopping Center have the same or similar radius clauses. Almost all of the tenants pay a percentage rent to Winrock. A few of the businesses were successful in obtaining waivers from Winrock which permitted establishment of additional businesses with the radius.
In 1975 House of Fabrics leased space in Coronado Shopping Center for a term of fifteen years at a minimum annual rental of $22,627.00. The company was operating this business at the time suit was filed.
It was stipulated that Winrock was unable to determine with certainty any lost rent or customers as a result of House of Fabrics having opened the store in Coronado
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[91 NM 663] Center, and therefore injunctive relief was sought rather than damages in this action.House of Fabrics argues that no contractual restraint of trade is enforceable unless the agreement embodying it is merely ancillary to some lawful contract and is necessary to protect the covenantee in the enjoyment of the legitimate fruits of the contract, or to protect him from the dangers of an unjust use of those fruits by the other party. Nichols v. Anderson, 43 N.M. 296, 92 P.2d 781 (1939); Gonzales et al. v. Reynolds, et al., 34 N.M. 35, 275 P. 922 (1929); Gross-Kelly & Co. v. Bibo, 19 N.M. 495, 145 P. 480 (1914); Hedrick v. Perry, 102 F.2d 802 (10th Cir. 1939); United States v. Addyston Pipe & Steel Co., 85 F. 271 (6th Cir. 1898). It is further claimed that the radius clause in this case is unnecessary to protect Winrock's interest, and is therefore unenforceable.
In effect, House of Fabrics is contending that, since the radius clause is not necessary to protect Winrock, the restriction is an unreasonable restraint of trade and is void.
This argument ignores an unchallenged finding of fact...
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State ex rel. Balderas v. Real Estate Law Ctr., P.C., CIV 17-0251 JB\LF
...at law inadequate, except by a multiplicity of suits." Winrock Enters., Inc. v. House of Fabrics of N.M., Inc., 1978-NMSC-038, ¶ 16, 91 N.M. 661, 579 P.2d 787, 790 (citing Kennedy v. Bond, 1969-NMSC-119, ¶ 17, 80 N.M. 734, 460 P.2d 809, 813 ). "Where injury is threatened, there need be no s......
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New Mexico ex rel. Balderas v. Real Estate Law Ctr., P.C., CIV 17-0251 JB\LF
...at law inadequate, except by a multiplicity of suits." Winrock Enters., Inc. v. House of Fabrics of N.M., Inc., 1978-NMSC-038, ¶ 16, 579 P.2d 787, 790 (citing Kennedy v. Bond, 1969-NMSC-119, ¶ 17, 460 P.2d at 813). "Where injury is threatened, there need be no showing of the precise measure......
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Kutka v. Temporaries, Inc., Civ. A. No. H-82-2071.
...Unishops, Inc. v. May's Family Centers, Inc., 399 N.E.2d 760 (Ind.App.1980); Winrock Enterprises, Inc. v. House of Fabrics of New Mexico, 91 N.M. 661, 579 P.2d 787 (1978); Insurance Center, Inc. v. Taylor, 94 Idaho 896, 499 P.2d 1252 (1972); Fullerton Lumber Co. v. Torborg, 270 Wis. 133, 70......
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