DPLM, Ltd. v. J.H. Harvey Company

Promissory Estoppel - Implied Covenant - Breach of Contract - Harvey's operates a number of grocery stores, and in 1989
entered into an amended lease with DPLM on its existing store in
Americus. That store was located in the Bel-Air Plaza shopping
center, which was owned and operated by DPLM. Beginning in 1991
or 1992, the parties began discussing the possibility that
Harvey's might enlarge its Bel-Air Plaza store. As these
discussions continued over the next few years, the parties
discussed various options for the size, layout and location of the
expansion.

In 1995 DPLM began to take steps to facilitate the proposed
store expansion. These steps included notifying several existing
tenants in the Bel-Air Plaza that DPLM would be unable to renew
their long-term leases, re-locating at least one tenant, refusing
other prospective tenants, purchasing options on adjoining
property, conducting various surveys and analyses, negotiating
with the city to postpone required landscaping and cooperating
with the Harvey's architect in obtaining a variance. DPLM kept
Harvey's informed of many of the actions it was taking.

By February 14, 1996, Harvey's authorized its attorney to
sign a letter of intent, setting forth the "basic terms and
conditions of the new, proposed lease" on a 33,000 square foot
store in the Bel-Air Plaza. On April 5, 1996, however, Harvey's
offered a "modification" and indicated that it was willing to
enter into "lease negotiations" for a 39,500 square-foot store.
Harvey's later prepared a draft lease for DPLM's consideration.
DPLM proposed a number of changes to the draft lease, and the
parties continued to negotiate the terms of the lease, as well as
how the expansion would be structured and financed. And Harvey's
was still considering various sizes and layouts for the proposed
store. Despite DPLM's repeated requests to wind up the
negotiations, the parties never signed a lease for the proposed
expansion.

Instead, on or around October 16, 1996 Harvey's notified DPLM
that it was considering the purchase of two existing grocery
stores in Americus, and several weeks later, on November 12, 1996,
it closed its Bel-Air Plaza store and moved to the newly-purchased
locations. Harvey's has continued to pay the base-rent, and a
pro-rata share of other obligations under the lease on its
Bel-Air Plaza store, but discontinued any rent payments based upon
percentage sales. And the Bel-Air Plaza location has remained
vacant.

DPLM's complaint sought reimbursement of the expenses it
incurred in preparing for the proposed expansion, as well as
damages it claims to have incurred as a result of Harvey's
abandoning Bel-Air Plaza.

Summary judgement granted to Harvey's on DPLM's claim of promissory estoppel, attorney's fees and breach of lease.

Unknown

Unknown

Reversed in part and affirmed in part by the Court of Appeals of Georgia. See: ___ Ga. App. ___ (1999), ___ S.E.2d ___. Note: The above date reflects the appellate court decision date, not the original trial date. Reported by kkm.