Did West Jefferson unreasonably withhold permission to assign the lease? MSC, Inc. owned the Marrero

Did West Jefferson unreasonably withhold permission to assign the lease?

MSC, Inc. owned the Marrero Shopping Center, and leased space to Tenet Health system for use in outpatient surgery and general medical practice. The lease allowed Tenet to assign the lease with MSC’s consent, and stated that consent would not be unreasonably withheld.
Two years later, MSC sold the shopping center to West Jefferson Medical Center, which owned an adjacent hospital and wanted the space for expansion. A few months after that, Tenet requested permission from West Jefferson to assign its lease to Pelican Medical, which intended to use the space for an occupational medical clinic. West Jefferson denied permission, stating that Pelican would be performing work not permitted under the original lease, and also because Pelican would compete with West Jefferson.
Tenet sued, claiming that West Jefferson was unreasonably withholding permission to assign. The trial court granted summary judgment for West Jefferson. Tenet appealed.

 

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