Legal Question in Business Law in California

Can you sue a neighbor business for opening up competing business right next door


Asked on 3/10/11, 12:19 pm

5 Answers from Attorneys

Joe Marman Law Office of Joseph Marman

Not unless it is prohibited by the landlord's rquirements in the lease, or unless it violates any city code requirements.

Read more
Answered on 3/10/11, 12:30 pm
Edward Hoffman Law Offices of Edward A. Hoffman

Only if the business has a contractual duty not to operate next door to you, or if its landlord has a contractual duty not to lease that space to your competitors. Such clauses are common in shopping center and mall leases, but relatively uncommon elsewhere -- especially where the spaces belong to different landlords.

Read more
Answered on 3/10/11, 12:34 pm
Thomas Libby Law Offices of Thomas L. Libby

Both prior answers should be helpful. I would also add that if one or both businesses are franchisees within franchise operations, there may be franchise contractual applicable issues impacting the rights.

Read more
Answered on 3/10/11, 2:03 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The right to be free of a nearby competitor arises most often in a shopping center or similar setup where multiple retail spaces are under the control of a single landlord. Shopping center leases often contain clauses protecting a tenant from the landlord's allowing a competitor. For example, a shopping center may allow only one frozen yougurt shop, or only one cell phone dealer. Otherwise, California law and policy encourages competition. Ever see a busy intersection with two, maybe three, gas stations?

Read more
Answered on 3/10/11, 3:18 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Try selling better quality products and/or lowering your prices.

Read more
Answered on 3/10/11, 9:52 pm


Related Questions & Answers

More Business Law questions and answers in California