Hornwood v. SMITH'S FOOD KIND NO. 1

OPINION

THE FACTS

In June 1975, respondent, Smith’s Food King No. (Smith’s), executed an agreement to lease 28,000 square feet of space in a 145,000 square foot shopping center now owned by Sanford and Rita Hornwood (Hornwoods). 1 The thirty year lease required Smith’s to pay approximately $92,398.00 in minimum annual rent as well as “percentage rent” calculated at 1.5 percent of sales generated by the store during the previous calendar year, less the aggregate amount of annual minimum rent paid. On November 1, 1986, Smith’s ceased its grocery operations at the Hornwoods’ shopping center.…