Solo Serve Corp. signed a lease for space in a shopping center. The lease contained this clause:

“Neither Landlord nor tenant shall engage in or permit any activity at or around the Demised Premises which violates any applicable law, constitutes a nuisance, or is likely to bring discredit upon the Shopping Center, or discourage customers from patronizing other occupants of the Shopping Center by other than activities customarily engaged in by reputable businesses.”

Westowne Associates, the landlord, later leased other space in the center to The Finish Line, an off-track betting business that also had a license to sell food and liquor. Solo Serve sued, claiming that Westowne had breached the lease. Solo Serve requested either a permanent injunction barring The Finish Line from using the center or that The Finish Line pay the cost of relocating its own business.

The case raises two questions. The minor one is, did Westowne violate the lease? The major one is, how could this dispute have been prevented? It ultimately went to the United States Court of Appeals, costing both sides much time and money.