Fashion Fabrics of Iowa, Inc. v. Retail Investors Corp.

McCORMICK, Justice.

The determinative question in this appeal is whether a commercial sublease contained an implied covenant by the sublessor to continue operating its adjacent business during the term of the sublease. The trial court held it did not. We hold it did and therefore reverse and remand.

This appeal arises from judgment entered for plaintiff Fashion Fabrics of Iowa, Inc. (Fashion Fabrics), d/b/a Fashion Place, in its action for rent against defendants Retail Investors Corporation (Retail Investors), d/b/a Fashion Place Ready-to-Wear, and Moss Stores, Inc. (Moss).

Fashion Fabrics…