Albertson's Not Permitted to Break Lease

United States ED Judge Stanwood Duval, Jr. issued a summary judgment ruling that Albertson's cannot break a lease agreement in the New Orleans Garden District because of potential competition from a proposed Wal-Mart Supercenter, reports The Times-Picayune.

"In the final analysis," Duval said, Albertson's wants to cancel the contract "because its profit margin may be less than anticipated." But "Louisiana courts have consistently held that incorrect assumptions about future events that may affect profitability are not grounds for rescission of a contract," and he accepts the same rule, he said.

Posted by AJR at February 27, 2003 10:47 AM