Edmond's of Fresno v. MacDonald Group, Ltd.

Appellants MacDonald Group, Ltd., et al., appeal from a judgment permanently enjoining them from leasing premises in the new mall addition of Fresno Fashion Fair to any retail jewelry business during the term of the lease held by respondent Edmond’s of Fresno for a store in the original mall.

The facts giving rise to the injunction are as follows: Respondent Edmond’s of Fresno (Edmond’s) is a California corporation engaged in the business of selling retail jewelry. In May 1968, Edmond’s conducted negotiations with agents for appellant Triple “F” Investments (Triple F) to secure space for a new Edmond’s store within a shopping center then being developed by Triple F, known as Fresno Fashion Fair. Construction on the 55-acre site had not yet begun. Consequently, negotiations were conducted through reference to site plans showing the proposed locations of a single enclosed mall structure surrounded by a parking area and several small outbuildings.

Respondent insisted upon assurances that only two retail jewelry stores would be allowed to lease space in the shopping mall. Appellant agreed and had its leasing agent prepare a lease agreement containing such a clause.

On…