A judge recently granted Simon Property Group LP a preliminary injunction, halting the closure of Starbucks’ tea retailer, Teavana, in many Simon malls.
Simon argued Teavana’s shuttering would breach “continuous operations covenants” found within leases that ensure the tenant will remain in operation during the entirety of the agreement.
Previously, no court had ever granted injunctive relief to enforce a continuous operations covenant against a non-anchor mall tenant.
The decision will be reviewed by the Indiana Supreme Court this year. If upheld, the outcome of this case will likely have a significant impact on shopping center operators and landlords.