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Take Care When Drafting Your Agreement

Brian Carter settled at mediation a lawsuit against the firm’s client regarding an alleged violation of a covenant to not lease space to a business that would compete with plaintiffs’ restaurant. Plaintiff restaurant owners contended that a gas station convenience store fast food restaurant and a Starbucks would compete with plaintiffs’ diner, which serves breakfast and lunch. The claim was based upon a written agreement that contained language susceptible to various interpretations. The case highlights the importance of having any such agreement carefully drafted and scrutinized by counsel to clearly define the scope of any such agreed restrictions.