Walker v. Associated Dry Goods Corp.

This case involves the interpretation of a lease of a shopping center and a modification thereof. The lease provides for a fixed rental and for “additional rent” to be paid by the lessee based upon a scale of percentages of “net sales” above a minimum figure. The controversy is whether or not the net sales of the sub-tenants of four shops are to be included in computing the additional rent. The Chancellor held that they were not, and the lessors appeal.

Negotiations extended over several years prior to the execution of the original lease (referred to below as “the lease”), which is dated…