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Walgreen v. Sara Creek

(1992)

United States Court of Appeals for the Seventh Circuit - 966 F.2d 273

tl;dr:

Plaintiff contracted with Defendant to have an exclusivity agreement for pharmacies in Defendant's mall. However, Defendant’s business was failing, so they bought out their anchor tenant and replaced them with a wholesale pharmaceutical store.

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ICRAIssue, Conclusion, Rule, Analysis for Walgreen v. Sara Creek

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Facts & HoldingWalgreen v. Sara Creek case brief facts & holding

Facts:Plaintiff Walgreens had a rental contract with Defendant Sara Creek...

Holding:Affirmed. In the breach of an exclusivity contract, injunctive relief...

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Walgreen v. Sara Creek | Case Brief DeepDive
Majority opinion, author: POSNER, Circuit Judge.
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Walgreen filed a breach of contract suit against Sara Creek and Phar-Mor for violating an exclusivity clause in their lease by planning to open a discount store with a pharmacy. The court found a breach of the lease and granted a permanent injunction against Sara Creek from leasing the anchor premises to Phar-Mor until Walgreen's lease expires. The defendants argued that damages should be the only remedy, but Walgreen argued that damages would be difficult to compute, including intangibles such as loss of goodwill. The court emphasized that the choice between remedies requires a balancing of costs and benefits, and the burden is on the plaintiff to show that damages are inadequate when seeking a permanent injunction. The use of "irreparable harm" as a synonym for inadequate remedy at law is confusing and should be avoided.

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Opinion (Concurrence), author: HARLINGTON WOOD, Jr., Senior Circuit Judge
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I agree with Judge Posner's ruling in this case and am pleased to endorse it.

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