Penelko, Inc. v. John Price Assocs., Inc
In Penelko, Inc. v. John Price Assocs., Inc., 642 P.2d 1229 (Utah 1982), the defendant lessors violated a commercial lease by constructing a large driveway, landscaped island, and restaurant in a common parking area, causing a substantial reduction in revenue and patronage of the plaintiff's business. Id. at 1232.
On appeal, the Court held that it was not error to balance the equities in that case. Id. at 1235-36.
The Court stated:
"The burden to defendant in removing the restaurant and the improvements incidental thereto would involve substantial economic waste; money damages would appear to be adequate to compensate plaintiff for violations of its lease, particularly in light of the fact that plaintiff has since the trial sold its theater building and its lease rights. Except in extraordinary circumstances, injunctive relief should not be granted where events have rendered such relief unnecessary or ineffectual." Id. at 1236.
In Penelko, the harm caused by the defendant's actions was measurable in past lost profits and an injunction would benefit no one because plaintiff no longer had an interest in the property and thus no future losses were possible. See id.