February 12, 2008

Court of Appeals Decision Favors Gabbert and Gabbert on Galleria Development

Faegre & Benson LLP recently achieved a significant victory for client Gabbert and Gabbert Company, the owner of the Galleria Shopping Center in Edina, Minnesota.

Gabbert announced plans in the fall of 2005 to build an 18-story luxury Westin Hotel and condominium tower next to the Galleria. Barnes & Noble, a Galleria tenant, claimed this development would violate its lease and sued Gabbert in the summer of 2006—seeking an injunction blocking construction and damages for alleged lost sales.

After a week-long bench trial, the trial court dismissed Barnes & Nobles’ claims, finding the development did not violate the lease and that, in any event, the court would not grant a permanent injunction.

Construction has begun, and the hotel and condos are scheduled to open later this year. Even so, Barnes & Noble appealed. The Minnesota Court of Appeals affirmed the trial court in all respects.

Salo Ale and Nathaniel Zylstra handled the trial and appeal, with support from Bob Schnell, Eileen Hunter, Charlie Ferrell, Lisa Kominski, Chuck Macdonald, Liz Shields Keating, Marty Chester, Tyler Candee, Kris Jameson and Rachel Hetlund.

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