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Whitinsville Plaza v. Kotseas Case Brief

Summary of Whitinsville Plaza v. Kotseas pg. 416

Facts: Kotseas conveyed the land to Plaza with a deed restriction to keep Kotseas from competing with Plaza.  Nine years later Kotseas once to build a CVS.

Procedure: This is claim that the covenant is not violated at all and that CVS is not bound by the covenant.  This is an appeal from a dismissal for failure to state a claim.

Issue: Can this type of covenant ever exist?

Holding: Yes.

Reasoning: Past cases say that these types of covenants are not valid.  Covenants not to compete have not been upheld in the past but this court does not agree with this.  Prior case law is clearly outdated.  These covenants create an incentive for Plaza to purchase property and develop it.  These types of covenants can run with the land if they are to benefit the orderly development of the land.

Decision: Reversed




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