Shortstop

Plaintiff Hudson Oil Company appeals from a judgment by the court denying it a permanent injunction to restrain defendant Shortstop from dispensing gasoline, allegedly in violation of a lease agreement entered into between lessors the Bells (not parties herein who are Shortstop’s predecessors in interest) and lessee A.A.A. Stations, Inc. (Hudson’s predecessor in interest). On appeal, Hudson asserts (1) a restrictive covenant contained in the lease “ran with the land” pursuant to the requirement of Civil Code section 1470 and thus was enforceable against Shortstop as a subsequent purchaser of the Bell property to the north of the leased premises and, alternatively, (2) the covenant was enforceable as an equitable servitude upon the land Shortstop had purchased from the Bells. The case was submitted to the trial court on an agreed statement of facts. The facts are as follows:

At the time of entering into the lease, the Bells also owned another parcel of commercial land northeast of but not contiguous to the two-acre tract.

Through name changes and merger, Hudson became successor in interest to A.A.A. Stations, Inc.’s rights under the lease. Hudson has exercised its…