Walgreens Sues Over Breach of Medical Campus Exclusivity Agreement

Pharmacy chain Walgreen Co. filed a lawsuit in the District of Maryland on Thursday, alleging that defendant Meritus Medical Center failed to honor an agreement that allowed Walgreens to operate the sole pharmacy chain on a Hagerstown, Maryland campus.

According to the complaint, Walgreens took over the lease for a pharmacy space in the Robinwood medical center that was originally signed in 2008. The plaintiffs cite a restrictive covenant included on the lease which they say bars the operation of another outpatient pharmacy on the campus.

Walgreens alleges that Meritus sold the specific office suite where Walgreens operated its pharmacy to evade the exclusivity clause; after the sale completed, Meritus opened its own competing pharmacy on campus.

Walgreens is seeking a declaratory judgment that Meritus is in breach of the lease agreement despite the sale, as well as relief on a claim for breach of contract. They are represented by Whiteford Taylor and Preston.