Legal Question in Real Estate Law in Florida

Noncompete clause

Hello, I currently operate a small retail store and

would like to sell coffe products in my store. My

neighbors have informed me that I cannot do this, as

they have signed a noncompete clause with the company

that leases both of our spaces. Nothing in my lease

states that I may not carry coffee products. I did

discuss this matter with the person who was in my

store front prior. In his lease it did state, ''retail

sales- no coffee products'' . Can I sell coffee

products, as it does not state in my lease that I

cannot? If I may not sell coffee products, may I give

free cups of coffee with another puchase? Thanks for

your help.

Sinc


Asked on 7/28/01, 1:29 pm

2 Answers from Attorneys

Elliot Goldstein Law Offices of Elliot Jay Goldstein

Re: Noncompete clause

Sounds like you landlord messed up. However, that should is not your problem. I assume that your neighbor is in the coffee retailing business. They might have a legal cause of action against the landlord for failing to include the "no coffee" restriction in your lease. Once again, that is not your problem.

On the realistic side, your insistence on being able to provide/sell coffee will probably lead to bad relations with your neighbor and/or with your landlord. Will it be worth it? The lease will need to renewed sometime. Payback can be a . . . .

You should schedule a formal consultation with a lawyer. A good means of obtaining an attorney referral is by contacting your State's bar association or your local county bar association. They probably have a web site and charge a nominal fee for the referral. Most attorneys either provide a free initial consultation, or charge a nominal fee.

Good Luck, Elliot Jay Goldstein (Attorney with offices in Tampa and St. Petersburg)

The above information is provided as a courtesy, without any consideration and without knowledge of the specific facts. Do not rely on this information. Seek a formal consultation with an attorney.

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Answered on 7/30/01, 8:00 pm
Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: Noncompete clause

I understand what your lease does not state, but what does it state? What is the stated allowable use or purpose in your lease? Is it retail sales in general of any and all goods and products or does it have language that may suggest a limitation of some sort?

It appears that your landlord may have made a mistake in your lease. If so, your neighboring tenants may have a claim against your landlord, but not necessarily against you, if their lease agreements contain a provision whereby the landlord represents that no other tenants can sell coffee products. Without reviewing the lease agreements, no one can give you any meaningful advice.

You may want to give this matter some careful thought and consideration before you elect to take any action. Although you may have legal strength behind your position, from a practical business perspective you may be shooting yourself in the foot when the time comes to renegotiate lease terms if you desire to remain as a tenant for an extended period of time. How much money can you make selling coffee products? Is it worth the risk of creating bad blood between you and your neighbors, the landlord? If not, perhaps you can meet with the landlord (after meeting with a lawyer) to explain your desire to sell coffee products, but to also convey your interest in cooperating with the landlord to avoid having the landlord get sued by other tenants in exchange for more favorable lease terms (e.g. concessions, reduced security deposit, rent-free period, extended lease term at the same or reduce rate per square foot, etc.).

Seek the advice of counsel and good luck.

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Answered on 7/31/01, 11:50 pm


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