Walgreens v. Sara Creek

• Sara Creek Property Co. = "Sara" = owner of Milwaukee's Southgate Mall
• Walgreen was a tenant in the shopping center owned by Sara Creek.
• The 30-year contract had an exclusivity clause, which stipulated that no other pharmacy would be in the shopping center while Walgreen's was there.
• When 10 years remained on the lease, Sara Creek was going through difficult times, & needed a new anchor tenant.
• Sara Creek signed Phar-Mor, a "deep-discount" pharmacy.

• Walgreen sought a permanent injunction to prevent Phar-Mor from moving in.
• A Wisconsin trial court granted an injunction until the expiration of Walgreen's lease.

Is injunctive relief an appropriate remedy for a breach of contract?

--

Is an injunction or payment of damages the proper remedy?

Injunction is: (1) simpler to implement, the court doesn't have to figure out the costs to each party, and (2) better fits the actual harm because the market determines value, which is better than the court determining value. Damage payment is better because: (1) it avoids supervision on the court's part to implement. (2) avoids a monopoly.

Injunction should be ordered in this case.

Affirmed

• Damage measure is too speculative to calculate with any certainty.
• Richard Posner: By balancing the costs & benefits of an injunction against those of a damages award, injunctive relief can be an appropriate contract remedy.