Thrifty-Payless Inc. v. Ennen Food Stores Inc.

MEMORANDUM ***

Movants-Appellants Ennen Food Stores, Inc., (“EFS”), a Washington corporation, and Brown & Cole Stores, LLC, *799 (“Brown & Cole”), a Washington limited liability corporation, appeal from the District Court’s Order Granting Appellee Thrifty Payless, Inc.’s (“Thrifty”) Motion for Summary Judgment, Denying Brown & Cole’s Motion for Summary Judgment, and Granting a permanent injunction in favor of Thrifty.

The parties to the appeal lease properties in the Lynden Towne Plaza Shopping Center (“Shopping Center”) in Lynden, Whatcom County, Washington. The parties’ dispute involves various leases and covenants regarding the use of premises presently occupied by the two principal tenants, Brown & Cole, who operates the supermarket, and Thrifty, who operates the pharmacy. The specific leases at issue include a lease entered into between the original owner of the shopping center and Associated Grocer’s Inc. (“the AG lease”), and a sublease signed contemporaneously between Associated Grocer’s Inc. (“AG”), and its initial subleasee, EFS (“the Sublease”). Brown & Cole currently operate the supermarket under the sublease.

The instant dispute arose when Brown & Cole underwent…